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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 by 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 2024
• How Much is Old Age Pension in Canada?
• OAS Eligibility
• When Do I Receive My First OAS Payment?
• OAS Clawbacks
• How to Minimize OAS Clawbacks?
• How to Apply for OAS Pension?
• Can I Get a Loan While on OAS?
• OAS Payment Dates FAQs
Here is the OAS payment dates 2024, so you can plan your monthly budget in advance:
OAS Payment Dates 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
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.
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.
Payment amounts and eligibility details differ between individual recipients. The maximum OAS payment amount someone can get is $778.
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.
As you plan for retirement, you need to understand the benefits available to you, especially when it comes to old age pension dates. The OAS program provides financial support for Canadians in their retirement years.
Knowing the exact dates on which these payments are made can help retirees manage their monthly budgets, cover their living expenses, and plan for any additional costs that might come up unexpectedly.
The Canadian government ensures that OAS payments are distributed promptly and consistently throughout the year. For 2024, the Old Age Pension payments are scheduled as follows:
Old Age Pension Dates 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 dates are meant to provide retirees with a consistent, reliable income stream, so they can plan their finances accordingly. The Government of Canada recognizes the importance of this financial stability for seniors, particularly those who rely on the OAS as their primary or significant source of income.
Beneficiaries should note that while the dates are planned to ensure regularity, circumstances such as weekends and public holidays may impact those dates. It's always good to check with the official Service Canada website or contact their service center for any updates or changes to the payment schedule.
The OAS amount for 2024 has been adjusted to meet the needs of retirees. As of 2024, the following details outline the OAS payment structure:
For individuals aged between 65 and 74, the maximum monthly OAS payment is set at $687.56.
Seniors aged 75 and over will receive a maximum monthly rate of $756.30.
These adjustments are made quarterly to ensure that the OAS payments remain reflective of the economic conditions and inflation rates. It's also important to understand that the actual amount received may vary from one person to another, depending on factors such as income level.
The government has also implemented measures to protect OAS recipients from inflation. If the cost of living increases, so will the OAS payments, so that seniors can maintain their quality of life. And should the cost of living decrease, the OAS payments will not be reduced, safeguarding seniors from potential financial instability.
Recipients who have lived in Canada for 40 years after turning 18 are eligible for the maximum payment amount. Those with shorter residency periods will receive a prorated amount based on the number of years they've lived in Canada.
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:
● The Guaranteed Income Supplement(GIS) is another non-taxable benefit meant to help low-income seniors residing in Canada. It’s received as a monthly payment.
● The Allowance can be received by individuals with a low income, aged 60 to 64, whose spouse or common-law partner is a GIS recipient.
● Allowance for the Survivor is a benefit designed for low-income Canadian residents. To receive it, they must be aged 60 to 64 and be widowed.
These benefits are adjusted every quarter, just like the OAS payment rates.
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:
Recovery Tax Period | Income Year | Minimum Income Threshold | Maximum Income Threshold |
|---|---|---|---|
July 2020 to June 2021 | 2019 | $77,580 | $126,058 |
July 2021 to June 2022 | 2020 | $79,054 | $128,149 |
July 2022 to June 2023 | 2021 | $79,845 | $129,757 |
July 2023 to June 2024 | 2022 | $81,761 | $133,141 |
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.
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:
1. You can split your income with your spouse or common-law partner – that means all eligible pension income, like workplace pensions, RRIF (Registered Retirement Income Funds), and using spousal RRSPs. By doing that, you are lowering the individual income, and OAS clawbacks can be reduced or even eliminated.
2. Deferring OAS and CPP can be a solution. Still, it means that your benefits will increase later on, causing clawbacks when you start receiving your pension. Sometimes it’s better to start receiving your pension earlier, at least as far as CPP is concerned.
3. Make the best of a TSFA. A tax-free savings account will generate investment income that isn’t taxable, meaning it doesn’t increase your net income.
4. You can contribute to an RRSP (Registered Retirement Savings Plan) because those contributions can lower the level of your net income. You can keep contributing until December 31 of the year when you turn 71. Spousal RRSP contributions will have the same result.
5. Be smart about your investments. It’s important to know that not all types of investment income will be taxed the same way. You will be fully taxed for interest income coming from Guaranteed Income Certificates or term deposits. For a better tax rate, you can turn to mutual fund corporations that can convert income into capital gains. To get an idea of the difference, only 50% of these gains go to the taxable income.
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.
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.
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.
The maximum Old Age pension payment for 2024 is $687.56 for those between 65 and 75 and $756.3 if you are 75 and over.
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.
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.
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.
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.
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.
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