The Old Age Security in Canada is a monthly payment received by eligible Canadians who are 65 and older. It is one of the federal government’s benefits administered to Canadian seniors.
However, not every Canadian senior is eligible for the OAS. In some cases, Service Canada automatically enrols you for the OAS pension. In other cases, you may have to apply for the OAS.
So are you eligible for the OAS pension? How much will you receive? When are the payment dates for 2024? This article answers these and enlightens you about Old Age Security in Canada.
Without skipping a beat, let’s get right into it.
What is Old Age Security Pension?
The Old Age Security (OAS) pension is a federal government benefit administered monthly by the Canada Revenue Agency (CRA) to most Canadian seniors aged 65 and above. It is administered by the Federal Department of Employment and Social Development Canada through Service Canada.
This benefit aims to offset a percentage of Canadian seniors’ living costs across all the provinces and territories of Canada. In most cases, the federal government automatically enrols eligible seniors on the program once they reach the age of 65. However, some need to apply for it.
While there’s a maximum OAS monthly payment annually, the amount varies by individual situation. Also, the OAS payment is taxable and subject to recovery tax for seniors with more than the annual threshold income.
Not all Canadian seniors are eligible for the Old Age Security payment in Canada. This begs the question: Who is eligible for the OAS pension? Let’s find out.
Who is Eligible for an OAS Pension in Canada?
While the Old Age Security pension is available to all Canadian seniors, only those who meet the following requirements can receive the OAS pension. To be eligible, you must:
- Reach 65 years old or above
- Have a Social Insurance Number (SIN)
- Be a citizen, permanent resident, or landed immigrant of Canada.
- Lived for at least ten years in Canada since the age of 18.
The federal government will automatically enrol you in the program once you meet the above requirements. However, you may need to apply yourself in some cases.
Unlike the CPP and employee pension plans, your employment history does not determine your eligibility for an OAS pension. You can receive the OAS pension even if you haven’t worked or are still working in Canada.
If you are a Canadian senior living outside Canada, you must:
- Be 65 years or older
- Have been a Canadian citizen or legal resident before you left Canada
- Have lived in Canada for at least 20 years since the age of 18
How Much OAS Pension Can You Receive?
The amount you can get from the OAS pension for January to March 2024 is $713.34 if you are aged 65 to 74 and your annual net income is less than $142,609 and $784.67 if you are over 75 years, and your annual net income is less than $148,179.
OAS pension amount is reviewed in January, April, July and October. The review is done to ensure that the current amount reflects the increases in living costs as measured by the Consumer Price Index.
Your first OAS payment will be administered the following month after age 65. However, you can delay your first payment to receive a higher OAS benefit for every delayed month. For example, If you delay your first payment till the age of 75, you will have a 10% increase in your payment in July 2024.
On the other hand, you will receive a retroactive payment if you apply to the OAS payment while you’re already over 65. This will last up to 11 months of submitting your OAS application. The retroactive payment doesn’t apply to the duration of delaying the OAS payment.
Also, the higher your income against the income threshold, the lower your OAS payment. The income threshold is set annually, and it’s $79,845 for 2021. Once you exceed the income threshold, you must pay a portion or the entire amount as OAS pension recovery tax.
Old Age Security Payment Dates For 2024
The Old Age Security pension is administered monthly to eligible seniors. Below are the OAS payment dates for 2024:
- January 29, 2024
- February 27, 2024
- March 26, 2024
- April 26, 2024
- May 29, 2024
- June 26, 2024
- July 29, 2024
- August 28, 2024
- September 25, 2024
- October 29, 2024
- November 27, 2024
- December 20, 2024
The OAS payments are distributed through cheques and direct deposit to bank accounts in Canada, the US, or supported countries. However, direct deposit is convenient and secure as you will receive your payment faster than cheques.
Visit your My Service Canada Account or call 1-800-277-9914 to set up direct deposits. If you use a foreign bank account, fill out the foreign direct deposit enrolment form.
How To Apply For The Old Age Security in Canada
To apply for the OAS pension in Canada, you can follow the following steps:
Step 1: Determine if you need to apply
The federal government automatically enrols you on the OAS pension once you qualify. However, you may need to apply if the CRA needs more information to enrol you automatically.
The CRA will send you a letter informing you that you will receive the OAS pension and don’t need to apply.
However, if you need to apply, you will receive a letter from the OAS asking you to apply. If you don’t receive any letter about the OAS one month after your 65th birthday, you can contact the government to find out if you need to apply.
Step 2: Decide when you want your OAS to begin
The government will ask you to choose between receiving your OAS pension at age 65 (one month after your 65th birthday) or receiving your OAS pension at a specific date you choose.
Step 3: Submit your application
But before applying for the OAS pension, ensure you have the following information:
- Social Insurance Number (SIN)
- Where you have lived since age 18, in Canada or overseas.
- Spouse or common-law partner information (optional)
- Employment or pension income reduction (optional)
- Preferred OAS payment date
- Banking information (to set up a direct deposit)
Here are the two methods of applying for Old Age Security in Canada.
1. Apply Online
All you need is to log in to your My Service Canada Account (MSCA) to apply for the OAS pension online. Register for the My Service Canada Account (MSCA) if you don’t have one.
However, you must meet the following requirements to apply for the OAS pension online:
- Be at least one month past your 64th birthday
- Live in Canada currently
- Don’t be an OAS current beneficiary
- Have no OAS application
- Have no authorised third party on your account.
2. Apply By Mail
You can also apply for the OAS pension by filling out the Application for the OAS and the GIS (ISP-3550), mailing or taking it to the Service Canada office together with certified true copies of the required documents.
The Reference Guide (ISP-3550A) contains all the information you need to fill out your OAS application.
You can also ask someone to help you apply for the OAS pension by filling out the Consent to Communicate Information to an Authorized Person form (ISP-1603).
However, you must mail or take the application to the Service Canada office. You can ask someone to help you apply for the OAS pension through your My Service Canada Account. But the person can’t:
- Apply for benefits on your behalf
- Submit the application
- Modify your payment address
- Request or modify your withholding of tax
Step 4: Receive a response
The government will mail you a letter with a decision on your application or a request for more information.
The decision letter will include the monthly OAS amount you will receive, your first payment date, and any past payment you are eligible for.
Step 5: Review your application status
You can check your application status in your My Service Canada Account (MSCA) or contact Service Canada.
Step 6: If you disagree with the decision
If you disagree with the government’s decision about your OAS pension, you can ask for a review of the decision. However, you must request the review in writing within 90 days of receiving the decision letter.
A Service Canada staff will review your application and get back to you.
Should You Delay Your Old Age Security Pension?
Your first OAS payment will be administered the following month after age 65. However, you can delay your payment to receive a higher amount each month you delay.
The federal government allows you to delay your payment up to 5 years after reaching 65. However, you will lose your benefits when you delay your payment after the age of 70.
Furthermore, you can’t get other benefits when you delay your OAS payment. This includes the Guaranteed Income Supplement (GIS) and your spouse’s application for Allowance.
So when deciding to delay your OAS payment, consider your financial situation, health, and retirement plan.
Other Benefits You Can Be Eligible For
In addition to your Old Age Security in Canada, the federal government of Canada also offers other benefits like the Guaranteed Income Supplement (GIS), Allowance, and the Allowance for the Survivor.
These non-taxable payments are based on your level of income, age and marital status.
1. Guaranteed Income Supplement (GIS)
The Guaranteed Income Supplement is available for Canadian seniors who are 65 or older, currently live in Canada, are receiving the OAS, and whose income is below the maximum annual income threshold for GIS based on their marital status.
If you are a single, widowed or divorced pensioner with less than $21,624 annual income, you will receive a $1,065.47 maximum monthly payment from January to March 2024.
The good part is that you can apply for the Guaranteed Income Supplement while applying for the Old Age Security.
2. Allowance
You or your spouse/common-law partner may receive an Allowance if you qualify for the GIS. However, your spouse or common-law partner must be between 60-64 years old, a citizen or a legal resident of Canada, currently live in Canada, have lived in Canada for at least ten years since the age of 18, and your combined annual income is less than the maximum annual income threshold fo Allowance.
Your annual income plus your spouse/common-law partner’s annual income must be less than $39,984 to qualify for January to March 2024 Allowance.
If your spouse/common-law partner receives the GIS and the full OAS pension with less than $39,984 annual income, you will receive a $1,354.69 maximum monthly payment from January to March 2024.
3. Allowance for the Survivor
You may also be eligible for Allowance for the Survivor if your annual income is less than $28,080. However, you must be between 60-64 years old, a widowed/widower without a common-law relationship.
If you are a surviving spouse or common-law partner with less than $29,112 annual income, you will receive a $1,614.89 maximum monthly payment from January to March 2024.
Final Thoughts on Old Age Security in Canada
The Old Age Security pension is ideal for every Canadian senior looking to offset their cost of living in Canada. While the amount may be small, it can pay off some of your bills and save you dollars monthly.
However, it’s essential to think twice before applying for the OAS pension when you clock 65. You can increase your OAS income by delaying it up to 5 years. But do you have other sources of income that can sustain you through these years?
While it may be beneficial to delay the OAS payment, consider your situation before doing so.
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FAQs on Old Age Security in Canada
How Much is Old Age Security?
The payment amount varies annually, but you can receive a $687.56 maximum monthly payment from January to March 2023.
How are OAS Payment Rates Calculated?
The OAS payment rates are calculated every January, April, July and October based on the latest Consumer Price Index (CPI). When the cost of living increases, the monthly payment rate increases. However, the payment rates will stay the same when the cost of living reduces.
Is OAS Taxable?
Yes. The OAS pension is a taxable benefit that must be reported on an annual income tax return. How much you pay depends on your tax bracket.
Can I Collect Old Age Security in Canada and Still Work?
You can work while collecting the OAS payment. However, if your income exceeds the income threshold ($129,757 for 2021), you must repay all or part of your OAS payment.
Can You Receive CPP and OAS at the Same Time?
You can receive CPP and OAS at the same time. However, you must repay all or part of your OAS payment once your income exceeds the income threshold ($129,757 for 2021). This is a wise decision because CPP allows you to receive a pension as early as 60, while OAS kickstarts a month after you clock 65.
Can You Be Denied OAS in Canada?
Yes, you can be denied OAS in Canada if you don’t meet the requirements. However, you can appeal to a review tribunal if you were rejected wrongly.
Does Everyone Get OAS at 65?
Only those that meet the requirements get OAS benefits at 65. However, you can delay your OAS benefits after 65 to receive a higher amount per each delayed year.
Drop your questions in the comment section or contact the Canada Revenue Agency for further clarification about Old Age Security in Canada.
