The Old Age Security (OAS) pension is one of the three main pillars of Canada’s retirement income system. The two other pillars are the Canada Pension Plan (CPP) and Employment Pension Plans/Individual Retirement Savings.
The universal OAS pension is a taxable monthly payment available to seniors who are aged 65 and older and who meet the eligibility requirements.
Unlike the CPP, Old Age Security benefits are not tied to your employment history. You may be eligible to receive the OAS pension even if you have never worked or are still employed.
In addition to the universal OAS pension, there are three other benefits that low-income seniors may also qualify for: The Guaranteed Income Supplement, Allowance, and Allowance for the Survivor. I discuss them in a separate article.
Read on to learn about OAS payment dates in 2023, eligibility, amounts, how to apply, and how to minimize OAS clawback.
Related: How Much Income Will You Need in Retirement
OAS Payment Dates for 2023
- January 27, 2023
- February 24, 2023
- March 29, 2023
- April 26, 2023
- May 29, 2023
- June 28, 2023
- July 27, 2023
- August 29, 2023
- September 27, 2023
- October 27, 2023
- November 28, 2023
- December 20, 2023
Learn more about OAS payment dates.
Who is Eligible for the Old Age Security Pension?
- You must be at least 65 years of age.
- If living in Canada: You must be a Canadian citizen or legal resident and must have lived in Canada for at least 10 years since you turned 18.
- If living outside Canada: You must have been a Canadian citizen or legal resident before you left Canada and must have resided in Canada for at least 20 years since you turned 18.
- There are a few other scenarios where you may be eligible for the OAS; for example, if you have lived in a country with which Canada has established a social security agreement.
How to Apply for the OAS Pension
If you wish to start receiving your OAS pension at 65 years of age, you can send in your application the month after you turn 64.
Service Canada will sometimes enroll seniors automatically and send them a notification letter. If you are not automatically enrolled, complete and mail the Application for the Old Age Security Pension Form.
How Much OAS Benefit Will You Receive in 2023?
The amount you will receive every month depends on how long you have lived in Canada after turning 18.
To qualify for a full OAS pension, you must have lived in Canada for at least 40 years after age 18. You will receive a partial pension benefit if you haven’t resided in Canada for the full 40 years. The partial pension benefit is 1/40th of the full pension amount for each complete year you lived in Canada after age 18.
For example, if you had lived in Canada for 20 years as an adult, you may qualify to receive 20/40th or one-half of the full benefit.
OAS benefits are adjusted quarterly in January, April, July, and October based on the prevailing Consumer Price Index. For the first quarter of 2023 (i.e. January to March), the maximum monthly OAS benefit is $687.56 (for ages 65 to 74) and $756.32 (for ages 75 and over).
Related: CPP and OAS Survivor Benefits for Spouses and Children
OAS Deferral Option
Since July 1, 2013, individuals can voluntarily defer their OAS pension for up to 5 years after the date they become eligible. This deferral will make them eligible for a higher monthly pension later.
For every month the OAS is deferred, the monthly pension amount increases by 0.6% up to a maximum of 36% at age 70.
OAS Clawback
Officially known as the OAS recovery tax.
Your OAS benefit may be reduced by a clawback if your net income for the previous calendar year exceeds $79,845 (2022) and $81,761 (2023).
If your net income exceeds this amount, you must pay back 15% on the excess income up to a maximum of the total OAS benefit received. This deduction is like an additional 15% tax on top of your current tax rate.
OAS clawback example: For example, for the 2021 income year, the income threshold was $79,845. If your net income was $85,000, the excess of $5,155 would trigger a clawback of $773.25 (i.e. 15% x $5,155). This would result in a monthly reduction in OAS benefits of $64.44 for the July 2022 to June 2023 period.
For the January to March 2023 quarter, if your net income exceeds $129,757, your OAS benefit will be reduced to zero.
Related: Guaranteed Income Supplement, Allowance and Allowance for the Survivor
How To Minimize OAS Clawbacks
A few strategies that may be deployed to limit OAS clawback, if applicable, include:
Income Splitting: Splitting eligible pension income, including workplace pensions, RRIF, and utilizing spousal RRSPs. This can lower individual spouses’ overall income and limit or eliminate OAS clawback.
Defer OAS/CPP: Seniors can defer OAS pensions for up to 5 years from when they are eligible. CPP can be deferred as well. However, note that deferring OAS or CPP will increase your benefits later down the road and could then trigger OAS clawbacks at that time. In some cases, taking CPP much earlier may be a better option.
Prioritize TFSA Contribution: Income generated from investments in a TFSA is not taxable and does not count towards your net income.
Utilize RRSP Contribution Room: You can contribute to an RRSP until the end of the year in which you turn 71. If you have unused RRSP contribution room from previous years or still have employment income, contributing to an RRSP will lower your net income for OAS calculations. Making spousal RRSP contributions will achieve the same result.
Optimize other Investments: Interest income from Guaranteed Income Certificates, savings, etc., are taxed fully. Dividends are grossed up (138%) and may push your income over the maximum threshold. Only 50% of capital gains are included in taxable income.
If you have questions about your Old Age Security pension, you can contact Service Canada as follows:
- If you reside in Canada or the United States, the toll-free number is 1-800-277-9914.
- If you reside outside Canada and the United States, the number to call is 1-613-957-1954.
Service Canada is open between 8:30 a.m. to 4:30 p.m. EST from Monday to Friday. Be sure to have your Social Insurance Number handy before calling.
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Related Reading
- Complete Guide To Retirement Income In Canada
- How To Generate Regular Income From Your RRSP in Retirement
- How To Generate Retirement Income From a LIRA
- The Complete Pre-Retirement Financial Checklist
- Is GIS Taxable?
Have questions about the OAS? Leave them in the comments.
thank you for your article on OAS,i’m getting 10. less then you said would be the max. payout from july-sept.2018,how do i correct this ???
@Richard: It is best to contact them at 1-800-255-4786 to find out what’s going on. Cheers.
Enoch, how does this work? I received the 613 for April, I have applied to the Ontario Arts Council to do Indigenous mural work in school and was awarded those submission. Example, $10,700 to work 3- 25 hr projects, out of that would be 6,000 for professional fee the rest goes into car rental, accommodations and stipend. How do I work this out because this is not a full time job, submitting for grants are a hit and miss? Your help is greatly appreciated. Michael
I am now collecting my Pension and OAS. Can I have a part time job and how much am I allowed to make before it effects my benefits?
My question is how much yearly income or low-income needed to get the full amount of OAS. I’ll be 65 years old next year 2021. I already received my CPP when Iturned 60 years old. I lived for 45 years in Canada
Hi & thanks for the useful information, so if I am a citizen for 37 years and spent 17 years out of the country the calculation will be 18/40 =%45 of the full benefits? Please correct me if I am wrong thanks.,
All the best,
Mario
@Maria Mo: The answer would depend on how long you have lived in Canada since you turned 18 years. For example, if you lived in Canada for 20 years since you turned 18 years and 17 years outside of Canada, the calculation will generally be 20/40 or 50%.
Also, if the country where you resided for the 17 years has a social security agreement with Canada, this may impact your OAS payments.
If in doubt, best to call them at 1-800-255-4786 to clarify.
Cheers.
Worked with both OAS & CPP programs for over 35 years and consider myself an expert in the field.
I thought I should comment on your response.
If Mario came to Canada after age 18 and resided here for 37 years then his OAS will be 37/40’s.
It makes no difference if Canada has an international agreement with Mario’s country, as his OAS amount will not be impacted by this agreement.
I received a letter asking me to write down all travels outside of canada since i was 18 for 6 months or longer. I had a green card for 10 yrs but i came home every weekend or every 2 weeks for most of that i figure out of the whole time i might have been out of canada for more than 6 months 4 times in my life. – but i cant remember the exact dates….how do i write that down? they said i might not get my pension – grrrr i was born here.
1①
Good info! My son turned 65 on Oct. 4, 2018. His OAP is only $540. Per month. Why so little. He was born and raised in Alberta. What can we do to correct this?
@Joyce: This may be due to an OAS Clawback. The OAS benefit may be reduced by a clawback if your net income for the previous calendar year exceeds $77,580 for 2019.
Best to call the OAS office at 1-800-255-4786 to clarify what’s going on.
My wife has been here for 3 years. Worked for 2. She is 62 and I’m 64. Would she ever qualify for CPP OR OAS
Thanks for the input. Kindly inform me about the following query:
Presently, I benefit from the OAP plan. I am thankful for that. However, there is one condition:
I can not be absent from Canada for more than 6 months at a time.
My question is:
What is the maximum period of time I can be absent from the country without jeopardizing my monthly allowance?
Regards,
Jorge Estevez
@Jorge:
As per Service Canada
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/while-receiving.html
“You can receive your OAS pension benefit payment outside the country if you:
resided in Canada for at least 20 years after turning 18; or
lived and worked in a country that has a social security agreement with Canada and you meet the 20-year residence requirement under the provisions of that agreement.”
If you meet these requirements, your OAS payments will continue even if you leave Canada for longer than 6 months. If not, 6 months plus the month you leave is the maximum.
Will my CPP benefit be deducted from my OAS income supplement?
There is no CPP clawback. However, your OAS payments may be reduced if your other taxable income exceeds the threshold amount for the year.
You can read about strategies to reduce the OAS Clawback here:
https://www.savvynewcanadians.com/strategies-minimize-old-age-security-clawback/
Do you know why my RIFF benefit was $50. less in Jan 2019? I only take the annual amount allowed before any tax is taken Thanks
@Paul: It is best to inquire from your RRIF provider as they should know what’s going on.
Hi am 60 year’s old I do have a halth problem am going on surgery next week I did aplay for income no one give me because I couldn’t work ben 15 years because of my halth but I have 6 children one of them has autism he is no with me now and I do have still 2 children ender. 16 years old half my children was Holmes I did start small morgege home with helpe of my daughter but my daughter mouving to ostralia I need income to kipp my children inside not homles pleese if you can help all be appreciated soo mach if you can help by check I do live in 33 Aberdeen court Dartmouth ns b2x 1k4 I need monthly incom thanks my email is **deleted** joumayla bitar. Thanks
Should also add that if someone hits 65 but is short of the 40 years, waiting to draw does not increase the amount by 7% annually. Rather it would go up only 1/40 or 2.5% annually, plus the cpi increase perhaps of 1.5%, until they reach 40 years. So you’ll still end up getting more by waiting but not as much as if you had qualified for the full pension at 65.
@Larry: Thanks for chipping this in.
My wife has been here for 3 years. Worked for 2. She is 62 and I’m 64. Would she ever qualify for CPP OR OAS
Would you please elaborate on this one.
The same year when I turn 65 will be my 35th year in Canada. So, if I take OAS that year, I’ll get 35/40. What happens if I defer it for 5 years? Do I get 2.5% per year based on extra 5 years of residency, plus 0.6% per year based on deferral or not? If there is 0.6% increase per year, which amount this is based on as the principal changes every year during those 5 years?
Thanks a lot.
@Nick: You only get the 0.6% added on every year.
Thanks a lot for such a prompt response.
What you say is completely opposite from Larry’s statement that I should expect to get 2.5% (1/40) per year based on residency, but not 0.6% per month, based on deferral.
@Nick: I dug a bit deeper and it appears that I was wrong.
See this article:
https://www.thestar.com/business/personal_finance/2013/12/14/old_age_security_better_to_wait_or_take_it_now.html
Towards, the end it covers the issue you raised.
“That means if you are only eligible for a partial OAS pension because you have less than the 40 years of residence required for a full benefit, you can’t use the deferral period to both increase your OAS pension by counting it as additional years of residence and also receive a 0.6 per cent per month increase for voluntary deferral. The deferral period will first be applied to increase your years of residency to the maximum.”
You may benefit from speaking with a financial advisor for a professional look at your overall financial picture to see whether deferring OAS makes sense or not.
Cheers,
Enoch
I am a Canadian Citizen of 76 years in age.Applied for Old Age Pension in October 2017.Residing in Calgary permanently since 2nd July 2006 till date with a gap from 23rd November 2012 to 15th June 2014,During gap period I was to India to settle some issues.Matter is still pending with Service Canada. I feel I have completed minimum residency period of ten years. Matter is still pending with SERVICE CANADA.please advise
@DK Sharma: Best to wait and see what Service Canada concludes. There are so many factors that go into determining OAS eligibility.
Cheers.
I did saind I don’t now if you getit just am 60 years old am not working been 15 years because of my helth and I did aplay many time no one I do have morgege with 6 children 2 ender 16 they was homles I need monthly income check be ok monthly to pay mortgage all be appreciated wat can help I do live in 33 Aberdeen court Dartmouth ns b2s 1k4 my email **deleted**
Canada Revenue form T1213OAS Request to Reduce Old Age Security Recovery Tax …
FYI – the 2018 version of the T1213(OAS) has been revised to explicitly exclude pension splitting from deductions. i.e. On Form T1213(OAS), it says- *The Pension income splitting is not considered a deduction. Do not include income tax deducted or pension income splitting amounts.
Having said, it appears that “Pension Splitting” can’t be used to reduce income for OAS claw-back purposes?
What happens if I do not apply for OAS when I am 70 years old?
@Ian:
As per the government website: “There is no financial advantage in deferring your OAS pension after age 70. In fact, you risk losing benefits. If you are over the age of 70, apply now.”
I’m a retired gov’t employee with a $800 a month pension and I collect the CPP and work. If I deferred my OAS until I’m 70 would my CPP still be reduced at age 65 because of my gov’t pension? Or would that take affect once I start on OAC?
I was mailed,that my OAS application will be deny ,if I do not apply for GIS.????
Also I was asked,if I have been out of Canada for more than 90 days for the last 10 years ???
Im 71 , have 20 years in Canada,may I have my cpp and Oas if go to live outside canada?
@Maria: If you meet the minimum 20-year residency requirement, you will receive your OAS payments unhindered while outside of Canada. Where you live does not affect CPP payments.
@Verna:
Contact Service Canada at 1-800-255-4786. If you reside outside of Canada or the U.S., you can reach them at 1-613-957-1954.
The phone number provided states
‘use text relay’
@Jo: Apologies, the toll-free # is 1-800-277-9914.
The dates that they say for direct deposit for pensions is that for that month or for the next month?
Note to Maria:
Depending on which country you reside in, you may be subject to withholding tax on your CPP/OAS. For example, it’s 25% in Thailand.
Here’s a bit more info on how OAS and CPP payments are affected when you retire abroad:
https://www.savvynewcanadians.com/collecting-oas-cpp-pension-non-resident-retirement-abroad/
spain or argentina?
Hi
I have just received my package for OAS as I will turn 65 next year in April.
I would like to have some advice concerning the amount I will received if I opt to have my pension for next year. And also I do not choose to stop work .
Do you have an office where I can meet you in person for more information?
Hi,
I like to know
1-How long I can be out of Canada to visit my kids and the rest of friend and family in a year?
2-With respect to Toronto, Ontario high cost of living where we live in Canada, and receiving OAS amount is not enough to live with, if I work as part timer( In spite of having heart surgery and a Cancer survivor) does it effect my OAS?, and how?
Thanks and
B.Regards/ Shahrokh Marzban
I recently entered into a common law relationship. My partner is retired and now applying for his OAS. I am still working. Will our status affect his OAS benefits? and how?
I ENTERED CANADA ON 2ND JULY 2000 AND WORKED TILL 2007 MIDDLE AFTER WHICH I LEFT CANADA FOR ALMOST 41/2 YEARS IN A COUNTRY WITH WHICH CANADA HAS NO SOCIAL SECURITY ARRANGEMENT TO COME BACK AND WORK TILL NOW WITHOUT ANY BREAK.AM TURNING 65 NEXT YEAR(2020) MARCH.PLEASE TELL ME IF I WOULD BE ELIGIBLE FOR FULL OAS OR PARTIAL?THE OTHER FACTOR WHICH I WOULD LIKE TO BRING TO YOUR NOTICE IS THAT MY WIFE TOO ENTERED CANADA ON THE SAME DATE AS ME BUT DUE TO HEALTH FACTOR SHE LEFT CANADA IN 2006 AND SHE LOST HER RESIDENCY DESPITE OUR APPEAL WITH IMMIGRATION.WILL IT AFFECT MY OAS AND GIS IF AM APPLYING?THANKS IN ADVANCE.
@Ravi: To qualify for a full OAS pension, you must have lived in Canada for at least 40 years as an adult. It appears that you will not qualify for the full OAS since your first entry into Canada was in the year 2000. As per how much you will receive exactly, please contact OAS at 1-800-277-9914.
My husband and I are both receiving OAS and CPP, I am 66 he is 72, we get $2676.28 a month with no other income, we have lived and worked in Canada all our lives. How come we don’t qualify for the full benefits?
How come my question has not been answered yet? As asked above.
@Kalo’lin: Unfortunately, I am unable to provide an answer to your question. It is best to reach the government directly at 1-800-277-9914 to confirm your benefit amount. Cheers, Enoch.
Just to add a response for Kalo’lin – If your combined income (not counting your Old Age Pensions) is less that $24,096 you qualify for the Guaranteed Income Supplement and you should apply immediately. From the monthly amount you indicated above, you should be receiving the GIS. Don’t delay in applying as Service Canada will pay you back for 1 year.
Mrs Sheppard,
This kind man is doing this for free. You hassling him to get an answer is obviously bad manners. Pls be patient and polite, or ask someone else for something free, see how far your attitude gets you. Enoch, apologies for some people, they think they are special and therefore deserve your full attention.
is the OAS in Canada taxed prior to payment to me, the amount i receive has already had tax taken off at the level my last income tax rate was at?? or is it like a minimum tax of 10% or only if i call and request taxes be taken off? thanks
@Donna: This is what the government website states about the OAS tax:
“OAS pension payments are considered to be taxable income.
To voluntarily request that federal income tax be deducted each month from your OAS payment, visit the My Service Canada Account (MSCA) or, complete the Request for Voluntary Federal Income Tax Deductions form (ISP 3520).
If you do not request monthly tax deductions, you may have to pay your income tax in quarterly installments. For more information, contact the Canada Revenue Agency (CRA) Tax Services Office.
Also, if your annual income is higher than the net world threshold of that year, you may be subject to the Old Age Security pension recovery tax, and you may have to repay part or your entire OAS pension.”
Note that if your income exceeds the max threshold for the year, there is a clawback of OAS benefits. It is best to reach them directly to find out the specifics for your situation.
You can reach them at 1-800-277-9914.
For more on the OAS clawback and how to minimize it, check this post:
https://www.savvynewcanadians.com/strategies-minimize-old-age-security-clawback/
Hello, I would like to know how much will be my OAS, by the time I turn 65? Which it will be next year, 2020. By that time, I will have 32 years of living in Canada. I came as a resident, and after three years, I became a Canadian Citizenship.
Can you please give me an idea? I alredy got my CPP, so I am not working anymore, but I am planning to share time in my born country and in my secund land, Canada, so, I just want to get an idea of my future income.
Thank you so much for your help, in advance.
@Ana:
It is impossible to get an accurate estimate of how much OAS you could get in 2020. However, using the current rates and the residency rules, we can roughly estimate as follows:
32/40 x $607.46 (current maximum) = $486 per month.
Some rules apply when you travel abroad. Read more in the link below:
https://www.savvynewcanadians.com/collecting-oas-cpp-pension-non-resident-retirement-abroad/
Thank you for the valuable information.
@Deborah: You are welcome!
I decided to take my old age benefits at age 70.I just turned 70 on July 23/19 do my benefits come to me automatically or do I have to contact someone for the payments to start.When do I receive my first cheque.
@Terry: You need to apply to start receiving your OAS. There are no benefits to delaying receiving your OAS benefits after age 70, so apply ASAP.
My July OAS has a considerable increase and I am wondering if this will be the amount I receive in future months. I have received no explanation of the increase to this date.
@Delores: OAS payments are adjusted quarterly and the last adjustment was made in July, so that may be the reason for the increase?
Before July 1/19 my combined OAS + GIS was $1008.77 after July 1 my payment changed to$1009.23 an increase of .46 cents. Yet the OAS increased to $607.46 from $601.45. Where is my other $ $7.00? Confused. I have called 1-800-277-9914 many time & always more than an hour wait. HELP>
@Barry: Unfortunately, I think Service Canada is still your best bet for an answer to your question.
OAS is considered taxable income. An increase in taxable income has a possible result in decreasing GIS.
Thank you. Barry
Hello,
What is considered a full year? If someone resided in Canada for example between January 1st 2011 and September 30th 2011, is this considered a full year?
Does the person have to reside for 10 years before the age of 65 to qualify for the minimum amount or is 10 years after the age of 18 enough, regardless if some of those years are after the age of 65?
Thank you
@Wassim: I believe that it is 10 years between age 18 and 65.
Somebody told me today August 22, 2919 that there is new rules if you travel abroad in OAS pension? It’s true? It is now only three months instead of six months?
If it’s not true if I travel Sep 11, 2019, when I should come back? I now 6 mths and how many days? Thanking you in advance
@Carmen: I’m not aware of any changes…believe it’s still 6 months.
Thank you Enoch for your answer!
You are welcome!
Thank you Enoch
I am 77 years old in October 2019. I came to Canada from Britain in April 2003, and was granted Canadian Citizenship on 27 April 2009. My total income comes from British Pension(s) paid to me in a Canadian Dollars in a Canadian Bank.
I am in receipt of a Company Pension and a United Kingdom Old Age Pension since the age of 65 years in 2007. I have had no increases to my U.K. Old Age Pension for 12 years as the United Kingdom does not have an agreement in pay pension increases to persons living in Canada. Due to the British Pounds large fall in value since 2008, I am now feeling the need to ask if I can apply for Canadian Old Age pension ? and from what date, if any, can I get it back dated?
Thank You in anticipation of your answer. ( PS Please note e-Mail address is in small letters)
Michael Collins
@Michael: Interesting scenario – I am not sure what the answer to your question is even though you appear to have lived in Canada for longer than 10 years. I would suggest calling OAS at 1-800-277-9914.
Mr Collins should apply for his Canadian Old Age Pension now, don’t delay since he was eligible to receive it when he reached his 10 years of residence in Canada (2013).
If he entered Canada as a permanent resident in 2003 he qualifies for 15/40’s of $607.45 per month ($227.79 per month)
If he applies now, he could receive retroactive benefits up to 1 year.
Hi Enoch, if I have lived in Canada for 20 years at my age of 65 and opts to defer until 70, will I get both the monthly increment up to 36% and an increased fraction from 20/20 to 25/40? Will this be considered a double-dip?
@Terry: Based on the way I understand it using the information available via Service Canada, the answer is “No.” Your monthly entitlements will increase by up to 36% depending on the deferral period, but the base amount will not increase to a 25/40 ratio. Best to contact OAS directly to confirm.
Thank you so much for your advice Enoch!
So I want to ask a question for my friend as well if you don’t mind. He is 76 now and has just decided to apply for the OAS. He lived in Canada for 20 years at his age of 65. Thus, based upon the OAS rules and your comments, is it true that he can now apply with a retro of 12 months, qualifying for 20/40 and a full 36% increment, and all the years accumulated during the deferral period from 65 to 70, and the delay from 71 to 75, won’t count?
Enoch, good advise and article, thanks.
Dave
@Dave: You are welcome. Cheers!
Hi Enoch, so I want to ask a question for my friend as well if you don’t mind. He is 76 now and has just decided to apply for the OAS. He lived in Canada for 20 years at his age of 65. Thus, based upon the OAS rules and your comments, is it true that he can now apply with a retro of 12 months, qualifying for 20/40 and a full 36% increment, and all the years accumulated during the deferral period from 65 to 70, and the delay from 71 to 75, won’t count?
Hi Enoch, would you be able to answer my question please?
I want to know whether visitor period is calculated for 10 years stay?
@Sureshbhai: No, I believe only the dates when you qualify as a “Canadian Resident” go into calculating the benefit.
Is it true they changed the age you can get OAS. I was born in 1966 and my husband was born in 1961. We both have lived and worked in Canada all of our lives. Thank you,
Is there any top up ofOAS and CP during this Covid19 period?
@Wayne: Not that we know of. Nothing has been announced to my knowledge.
OAS amount is too low, is there any raise or preferences for Emergency Benefit COVID 19.
I heard the gov’t will give an additional small monetary bonus for all OAS – no idea how much but i would think $100 or so.
@Steve: $300 for OAS recipients and an additional $200 for those who are eligible for GIS.
You can read more about it here:
https://www.savvynewcanadians.com/oas-gis-benefits-top-up-covid-19/
question: I am aware a CDN cannot stay out of Canada longer than 181 days per year to keep GIS. I am aware if I make more than the $6K/yr (GIS i would receive) I will lose it, same if I stay long than 6 months out of Canada. My question is if I am working from Mexico or Thailand and I am making $1000+ month will I still receive my OAS + CPP in my bank account in Canada?
@Steve: Not sure whether I understand your question fully. You will continue to receive CPP and OAS benefits while abroad if you meet the eligibility requirements. CPP payments will not change even if you continue to earn money. OAS benefits may be clawed back starting from $79,054 in 2020.
You may have answered this question before but as I understand you can be out of the country 6 months without any penalty to my OAP and CPP. How do you calculate the time? Is it a calendar year or 12 months from when I leave Canada to when I return? If I came back into Canada on Sept 15 2019 .. 12 months would be Sept 15 2020. I want to leave again June 15 2020… would I be able to come back into Canada Sept 15 2021… thanks for any clarification you can give me
When and how will the $300. payment to seniors receiving OAS be paid out?
My mother receives a small portion of the GIS, along with the full OAS, and a portion of CPP. Will she receive all / some / none of the one-time additional payment for the GIS, to go along with the $300 one-time extra payment for the OAS?
@Tanya: My understanding based on the info available is that if she qualifies for GIS payments, then she gets the one-time boost. That being said, I don’t know for certain that this will end up being the case.
Hi Enoch,
I’m another financial advisor who was poking around on behalf of one of my clients and came across your site. I was wondering about your description of the OAS clawback like a 15% tax. My take on it has always been that the real tax impact is lower, as you would have been taxed on those OAS dollars had you got to keep that were clawed back had you got to keep them anyway, so that the true impact is probably closer to a 10% tax, depending on how much is clawed back and what tax brackets apply to that client when calculating what they would have paid on the portion of their pension but for the clawback. I actually just tested this out using the taxtips tax calculator with clients with identical incomes, but one with $6000 in OAS and the other with no OAS but $6,000 more in interest. The OAS getter paid about 9.25% more tax for the portion of the income he earned when in the clawback zone rather than 15%. I emailed them with my calculations just to be sure and will let you know if I’m wrong, but I think I’ve got this one right. I’ve written about this previously on my website at colinsritchie.com and also adjust the true cost for different types of income, like capital gains and eligible dividends, although this was a few years ago and the actual rates would have changed between now and then. Assuming this is the case (do verify), I figured you might want to tweak the wording of your OAS article. Otherwise, great website and keep putting the word out there. Best wishes, Colin
@Colin: Yes, you’d be right about the overall tax burden on the OAS clawback being lower than 15% overall when regular taxes on the amount are considered. Since OAS recipients would have differing tax situations, it is easier to point out the general clawback tax than it is to breakdown how it may affect each and every scenario out there. Cheers.
I have lived in Canada since June 1980 (40 years and 4 months),and been receiving a reduced o.a,s since I was 65, am I eligible to a full pension now and if so when should I expect to receive it?
I was in full employment up until last year.
I emigrated to Canada when I was 35 in June of 1980 and am 76 now making it 40yrs+,I am on a partial o.a.s pension at the moment should I be eligible for a full pension now?
Received the application form for OAS, I found that I need to fill in my insurance or identification number in Residence History column B5.
Is it possible to leave it blank if I can’t recall the full identification number of my hometown.
Anyone can advise. Thx!
Hi Enoch: I am a 70 years old permanent resident of Canada since April 2011. I receive a monthly job related pension in India, approximately equivalent to C$ 16,000/- per year and I pay income tax on that in India. I understand that I will have to include this amount ($16,000) in my application form under world income column.
Will this amount affect my monthly OAS and GIS when I apply after completing 10 years in April 2021. Inever stayed out of Canada for 6 months or more at a stretch.
Thank and regards
@Balbir: Yes, I believe your worldwide income goes into determining whether you qualify for GIS and OAS benefits. GIS has a lower income threshold since it is aimed at low-income seniors.
This is an explanation to those who are delaying their OAS based upon the following specific circumstances.
If a person decided to continue working after the age of 65 and their income was at the top end of the chart, then you decide to retire at the age of 66. You will not receive OAS in that year. The government will look at your prior years income and if it was over the limit, it means everything would’ve been clawed back anyhow, so the government will issue you a slip in the amount that you would have received that you can use as a tax deduction for that year. In the following year after you’ve done your new taxes, the government will look at what your income was and based upon that, will issue you the appropriate amount of monies. If for example you are under the limit, you would get the maximum OAS coming to you. My understanding is this would be done around midway through the year and the government would issue the monies for that 1st half of year owed to you and then continue monthly payments.
It took several calls to the Canadian revenue agency before I spoke to someone who could explain it to me properly.
I understand that the liberal government have approved a 10% increase in old age pension benefits when a person has turned 75. I turned 75 this month but my pension only increased by the cost of living increase. Can I assume that the increase is only payable starting the month after one turns 75. Thanks
On January 27, 2021I didn’t receive my full pension, I got only$359 OAS and the rest part didn’t. I don’t know what is going on? And how I could live on $359 ?
Hi Enoch, Is it necessary to have continuous residence in Canada to be eligible for OAS ? E.g. – If I resided in Canada for 5 years straight and then was away for 2 years and came back to reside in Canada for 5 years. Would that count as 10 years to make me eligible for OAS ? Thank you.
@LASB: I believe so…you don’t need to have lived here full-time. That said, you should inquire further from Service Canada how they count each full year.
Thank you
If someone turns 65 years of age after being in Canada for 35 years he/she receives 35/40 of the OAS amount. Is the ratio going to change the next year when he is 66 and his residence in Canada has increased by one more year to 36? I mean the payment ratio changes to 36/40 and continues until it reaches 40/40?
@Saeed: No, the ratio when you start collecting is what is used going forward in calculating your benefit.
May 5th,2021
Hello, my husband and I have been living in Canada for 7yeas he is 82 ,and I am 71 years old. Before pandemic Covid-19, our daughter used to pay for us, but she missed her job last year and could no longer pay us for our life. Is Canadian Government paying for us to live on? And does OAS include us and help us ? We are very desperate and helpless, please help us.
With respect and thanks. Julie
@Julie: Sorry to hear. You could qualify for partial OAS benefits depending on how long you have lived in Canada as an adult.
Eligible seniors can expect a $500 one-time OAS payment during the week of August 16, 2021.
I had collected OAS for years.Because of capital gains my income was over the allotted amount.Do they automatically place you back into OAS after your income becomes less in order to be eligible.When would i get my first amount …the end of June or the end of July.
I have not heard from them.
Thanks
I have lived in Canada for 30 years and nearly 70 now.
If I qualify for a pension from the UK will this affect my OAS.
@Jill: I would assume so since this pension is included in the worldwide income you declare on your tax return?
Hi Enoch, can you answer the following questions which have confused me a lot please? (a) If I defer my OAS until the age of 70, then I know I will get 36% more, but calculated based on which amount? Is it the amount when I am first entitled at the age of 65, or the most recent amount at the age of 70? (b) Following the above, assume I will get 36% more of my entitlement at the age of 65 when I start receiving the OAS at the age of 70, then how much will I receive in the next year and going forward? Always the same amount as before or following the amount increased by the CRA each year? Can you illustrate with a hypothetic example please?
Thank you.
Ray
Hi Enoch, if a person defer receiving the OAS from 65 to 70, then he get a 36% increase. I have two questions about this: (i) What is the base amount for calculation – the eligible amount at 65 or 70? (ii) Assume it is the amount at 65 for the previous question, then is it true that he is going to get the cost of living adjustment each and every subsequent year based on this amount but not the annual amount published for the current year by the CRA?
Thanks!
Ray
Hi Enoch, if a person defers receiving OAS until 70, will the 36% increase be calculated based on the amount at 65 or 70? Also, how will the second year (i.e., 71) be calculated taking into consideration of the annual inflationary increase?
Thanks
Ray
I’m in arrears with maintenance enforcement here in Alberta. I’m currently paying 80% of my CPP to them thru a Court ordered judgement. Will I also lose most of my OAP which I just became 65 years in August of this year.
@S.P. From what I could find online, it is a possibility.
It looks as though the OAS will rise by around 2% in July, due to the increase in cpi from Feb to April this year, compared to last. Will this increase occur before the 10% one-time increase in the federal budget, or will the 10% include the 2% we would have received anyway?
Hello Enoch,
When I am 65 I will have lived in Canada for 15 years. If I defer collecting OAS until 70, will the deferred 5 years count. In other words, would I get 20/40th OAS at 70 as compared with 15/40 aged 65.
Thank you.
@Philip: Yes, that’s correct, as long as you haven’t taken OAS until age 70.