Old Age Security: OAS Payment Dates and Amounts for 2022

What is OAS?

OAS, or the Old Age Security program, is the retirement pension that most Canadian citizens and residents receive once they turn 65. It’s designed to provide families with assistance, even if they haven’t worked at all.

Canada has a retirement income system made up of three pillars: the Old Age Security, the Canada Pension Plan (CPP), and Employment Pension Plans/Individual Retirement Savings.

Old Age Security is a taxable monthly payment that residents and citizens who qualify receive once they turn 65. It’s significantly different from CPP as it’s not connected to your employment history.

Even if you have never been employed or are still working, you can receive OAS as a retirement income. That is possible because this pillar isn’t funded from your contributions but by the government’s general tax revenues.

Since the universal OAS pension is still a low-level income, recipients may also qualify for three other benefits: The Guaranteed Income Supplement, Allowance, and Allowance for the Survivor. In addition to government aid, you may qualify for loans if you receive government benefits.

iCASH has provided a detailed outline of the Old Age Security (OAS) program, what it can provide, who qualifies, and OAS payment dates and amounts.

OAS Payment Dates for 2022

Here is the OAS payment schedule for 2022, so you can plan your monthly budget in advance:

OAS Payment Dates 2022

   • January 27, 2022
   • February 24, 2022
   • March 29, 2022
   • April 27, 2022
   • May 27, 2022
   • June 28, 2022
   • July 27, 2022
   • August 29, 2022
   • September 27, 2022
   • October 27, 2022
   • November 28, 2022
   • December 21, 2022

Sometimes your monthly OAS is not enough to cover a financial emergency. Maybe your tire just blew, or your sink is leaky. You have allotted enough funds for your budget, but sometimes you need a little help. Luckily, payday lenders online accept Old Age Security as a form of income so that you can apply for a loan.

How Much is Old Age Pension in Canada?

The maximum OAS payment in Canada goes through quarterly adjustments in January, April, July, and October. It’s adjusted based on fluctuations in the Consumer Price Index.

For the first quarter of 2022, from January to March, the maximum amount is $642.25. For the second quarter of 2022, from April to June, the maximum amount is $648.67.

If you are (or will be) 75 years old or older in June 2022, you are entitled to an automatic 10% increase of your Old Age Security pension starting July 2022. If you turn 75 after July 1, 2022, you will receive the increase in the month following your 75th birthday.

You should also take note that the 10% increase in the maximum OAS pension will not affect the calculation of your Guaranteed Income Supplement (GIS).

OAS Eligibility

To be eligible for Old Age Security pension, you must be at least 65 years old. There are two scenarios based on where you’re living.

If you live in Canada:
   ● You must be a Canadian citizen or legal resident when your application is approved
   ● You must have resided in Canada for more than ten years after turning 18 years old

If you live outside of Canada:
   ● You must have been a Canadian citizen or legal resident when you left the country
   ● You must have resided in Canada for more than twenty years after turning 18 years old

But these two aren’t the only possible scenarios. You can still receive an OAS pension or pensions both from Canada and another country if you fit into one of the following categories:

   ● You have resided in a country that has a social security agreement with Canada
   ● You have made contributions to a social security system in a country that has a social security agreement with Canada

If you’re a Canadian and work abroad for a Canadian employer, it is possible to have your time abroad considered a residence in Canada. For that to happen, you must turn 65 while you are still employed or come back to Canada during the first six months after your employment ends.

Even if you are not eligible for Old Age pension, you may qualify to receive other types of retirement benefits. Modern online lenders accept various government benefits that can be eligible as income when applying for online loans in case of financial difficulties.

When Do I Receive My First OAS Payment?

If you meet all the requirements we mentioned above and your pension is approved, you will receive your first payment the month after turning 65.

It is possible to defer your OAS retirement income for up to five years if you want to. People sometimes choose this option because it means their delayed Canada OAS payments will be larger. More precisely, the monthly payment will increase by 0.6% for every delayed month. The increase can go up to 36% when you turn 70. But it’s essential to keep in mind that you won’t qualify for the Guaranteed Income Supplement(GIS) and Allowance during this period of delay.

Since we mentioned additional benefits you may qualify for, let’s take a close look at each of them:

These benefits are adjusted every quarter, just like the OAS payment rates.

OAS Clawbacks

Qualifying for Old Age Security pension may not be difficult, but there’s one more aspect you need to consider: clawbacks when it comes to Old Age pension payment amounts. Also called “OAS recovery tax”, the clawback is a reduction that your pension must go through. If your annual income goes over a particular threshold, you will have to pay back part of your OAS pension or even all of it.

Your income for the previous year is the basis of this calculation. The repayment is based on the difference between that income and the threshold. More precisely, 15% of the exceeding income will have to be reimbursed.

Take a look at the table below to see the exact thresholds:

If your income is higher than the minimum threshold, you must repay 15% of the extra income up to a maximum of the total value of OAS collected. But if your income is above the maximum threshold, your Old Age benefit drops to zero.

Let’s take an example. Suppose your income in 2019 was $90,000. Since the threshold is $77,580, the calculations are as follows:

$90,000 - $77,580 = $12,420
$12,420 x 0.15 = $1,863
$1,863 / 12 months = $155.25 per month

In this case, your OAS pension will be reduced by $155.25 for the period between July 2020 and June 2021.

How to Minimize OAS Clawbacks?

To make the most of your OAS pension, it’s essential to know how to minimize the clawbacks. Fortunately, there are things you can do to head in that direction:

How to Apply for OAS Pension?

It is possible to be automatically enrolled for Old Age Security benefits by Service Canada if you qualify. In that case, they will send you a notification letter the month after you turn 64. If that doesn’t happen, or the letter you receive only informs you that you may be eligible for OAS, you will have to apply for this pension yourself.

In some cases, the government agency doesn’t have all the necessary information to enroll you automatically. So, you will need to fill in the Application for the Old Age Security Pension Form and send it. You can also apply online using My Service Canada Account. Regardless of how you choose to apply, you need to do it the month after turning 64. Otherwise, you won’t start receiving OAS pension at 65.

Can I Get a Loan While on OAS?

You can get a loan while on OAS as long as you turn to the right source. A reputable lender like iCASH is your best option; we approve loans for multiple income sources and have no minimum credit score requirement.

On top of that, you can apply online and receive the answer right away, saving time and effort. Emergencies can happen during your retirement years, too, and these loans can get you up to $1,500 to cover those expenses and get back to enjoying your golden years.

These unsecured loans are perfect for unexpected expenses like a car that needs a repair before Monday and not to cover basic needs. They are available online, 24/7, and 365 days a year because emergencies can’t wait. An online lender like iCASH is a great choice for recipients of Old Age pension.

OAS Payment Dates FAQs

Will OAS benefits increase in 2022?

The maximum Old Age payment is subject to a quarterly revision and adjustment. It’s a way of making sure the OAS payment rates reflect the changes in the cost of living, based on the Consumer Price Index.

For recipients’ protection, the monthly payments increase if the cost of living goes up but remain the same if it goes down.

What is the maximum OAS payment in Canada?

The maximum Old Age pension payment for 2022 is $642.25 for the first quarter and 648.67 for the second quarter. After that, you’ll need to follow the adjustments based on the Consumer Price Index to find the updated maximum amount. But keep in mind that to receive the maximum amount, you need to have lived in Canada for 40 years after turning 18.

If you are receiving a partial Old Age Security pension, you can contact the Government of Canada to learn more about our OAS pension, Guaranteed Income Supplement or your spouse's or common-law partner's allowance payment amounts.

If you are receiving a full OAS pension, you can learn more about your maximum monthly payment amounts in the breakdown chart located on the Government of Canada’s web page that highlights the Old Age Security payment amounts.

Is income tax deducted from OAS payments?

Your OAS payment amounts are considered taxable income, but taxes won’t be automatically deducted every month. If you want them to be, you can request to have the federal income tax deducted from your monthly payments. There are two ways to do that:

   ● You can sign in to your My Service Canada Account
   ● You can fill in the request for voluntary Federal Income tax Deductions CPP/OAS form (ISP-3520OAS) and send it by mail or deliver it in person at a Service Canada office.

If you don’t make that request, you will have to pay your income tax every quarter.

Can you delay OAS payments?

You can delay your OAS payments for up to five years until age 70. It will get you an increase in benefits once you start receiving them. More precisely, for every deferred month, your payment amounts will increase by 0.6%, up to a total of 36%.

Still, before deciding to delay your payments, keep in mind that it means you won’t be eligible for the Guaranteed Income Supplement (GIS) during this period.

Can I collect OAS while working?

You can collect Old Age Security pension while working. That’s possible because this pillar isn’t connected to your employment history; you can receive payments even if you still work or if you have never been employed.

However, if the income you earn after you turn 65 is high, it will affect your OAS payment amounts and reduce or even eliminate them. Refer back to the clawback table above to see the exact reduction you can expect.

Can I collect OAS while living abroad?

It is possible to collect OAS while living abroad. But to be eligible, you must meet a few requirements:

   ● You must have been a Canadian citizen or legal resident before leaving the country
   ● You must have lived in Canada for at least 20 years after turning 18 years old

You may also qualify if you lived in a country that has a social security agreement with Canada.