Key Takeaways:
- The Old Age Security (OAS) pension is a monthly benefit that eligible Canadian seniors receive to help cover living expenses in retirement.
- OAS benefits are adjusted quarterly based on inflation. For the first quarter of 2024, the maximum monthly OAS benefit is $713.34 for seniors aged 65 to 74 and $784.67 for seniors aged 75 and over.
- Seniors who are 75 and over will receive a one-time payment of $760 on January 24, 2024, as part of the government’s plan to increase OAS benefits by 10% for this age group.
- To qualify for the OAS pension, seniors must meet the age, citizenship, and residency requirements. They can apply online, by mail, or in person at a Service Canada office.
- In addition to the OAS pension, seniors may be eligible for other benefits, such as the Guaranteed Income Supplement, the Allowance, and the Allowance for the Survivor, depending on their income and marital status.
What is OAS 2024?
The Old Age Security (OAS) pension is one of the main pillars of Canada’s retirement income system. It provides a monthly benefit to eligible Canadian seniors who are 65 years or older, regardless of their work history or income. The OAS pension is funded from general tax revenues and is considered taxable income.
OAS benefits are indexed each year to keep pace with inflation. This means that the benefit amounts are adjusted every quarter based on changes in the Consumer Price Index (CPI), which measures the average change in prices of goods and services purchased by Canadians. Indexing ensures that OAS benefits maintain their purchasing power and help seniors cope with the rising cost of living.
For the first quarter of 2024 (i.e. January to March), the maximum monthly OAS benefit is $713.34 for seniors aged 65 to 74 and $784.67 for seniors aged 75 and over. This represents an increase of 0.8% over the previous quarter and 4.7% over the same quarter in 2023.
IMPORTANT LINKS:
- What Expenses Can You Deduct from Your Rental Income? (Updated 2024)
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- CPP, RRSP, TFSA, FHSA, AMT and OAS Changes: What You Need to Know for 2024
- What Happens to Your CPP and OAS Benefits When Your Spouse Dies?
- How to Get the Grocery Rebate Payments in Canada in January 2024
Eligibility of the Old Age Security
To be eligible for the OAS pension, seniors must meet the following criteria:
- Be 65 years of age or older
- Be a Canadian citizen or a legal resident of Canada
- Have resided in Canada for at least 10 years since the age of 18
Seniors who have lived in Canada for less than 40 years after turning 18 will receive a prorated payment based on the number of years they have lived in Canada. For example, if a senior has lived in Canada for 20 years, they will receive 50% of the full OAS pension amount.
Seniors who are living outside Canada may also qualify for the OAS pension if they have:
- Been a Canadian citizen or a legal resident of Canada on the day before they left Canada
- Resided in Canada for at least 20 years since the age of 18
- Lived or worked in a country that has a social security agreement with Canada
Seniors can apply for the OAS pension online, by mail, or in person at a Service Canada office. They should apply at least six months before they turn 65 or when they receive a notification letter from Service Canada. If they delay their application, they may lose some benefits or receive a lower amount.
January 24 is the Big Day for Seniors
Seniors who are 75 and over will receive a one-time payment of $760 on January 24, 2024, as part of the government’s plan to increase OAS benefits by 10% for this age group⁴. This payment will be automatically issued to seniors who are eligible for the OAS pension as of June 2022. They do not need to apply or provide any additional information.
The one-time payment of $760 is in addition to the regular OAS pension and other benefits that seniors may receive. It is a tax-free payment that will not affect their eligibility for income-tested benefits, such as the Guaranteed Income Supplement, the Allowance, and the Allowance for the Survivor.
The one-time payment of $760 is part of the government’s commitment to support seniors who are facing higher costs and challenges due to the COVID-19 pandemic. It is also a recognition of the valuable contributions that seniors have made to society and the economy.
Other OAS Benefits
Besides the OAS pension, seniors may be eligible for other benefits under the OAS program, depending on their income and marital status. These benefits are:
- Guaranteed Income Supplement (GIS): A monthly benefit for low-income seniors who receive the OAS pension. The GIS amount is based on the senior’s income and marital status. The maximum GIS amount for the first quarter of 2024 is $1,065.47 for single, widowed, or divorced seniors and $712.97 for seniors who have a spouse or common-law partner who receives a full OAS pension¹.
- Allowance: A monthly benefit for low-income seniors aged 60 to 64 who have a spouse or common-law partner who receives the OAS pension and the GIS. The Allowance amount is based on the couple’s combined income. The maximum Allowance amount for the first quarter of 2024 is $1,186.44¹.
- Allowance for the Survivor: A monthly benefit for low-income seniors aged 60 to 64 who are widowed or whose spouse or common-law partner has died. The Allowance for the Survivor amount is based on the senior’s income. The maximum Allowance for the Survivor amount for the first quarter of 2024 is $1,440.14¹.
These benefits are not considered taxable income and are subject to a recovery tax if the senior’s individual net annual income is higher than the income threshold set for the year ($21,624 for 2022).
Seniors who receive the OAS pension and other benefits should report any changes in their income, marital status, or address to Service Canada as soon as possible. These changes may affect their benefit amount or eligibility.
Conclusion
The OAS program is a vital source of income for many Canadian seniors. It provides a monthly benefit that helps them cover living expenses in retirement. The OAS benefit amount is adjusted quarterly based on inflation to ensure that seniors can afford the rising cost of living.
Seniors who are 75 and over will receive a one-time payment of $760 on January 24, 2024, as part of the government’s plan to increase OAS benefits by 10% for this age group. This payment is a tax-free and will not affect their eligibility for other income-tested benefits.
Seniors may also qualify for other benefits under the OAS program, such as the Guaranteed Income Supplement, the Allowance, and the Allowance for the Survivor, depending on their income and marital status. These benefits provide additional financial support for low-income seniors.
Seniors who are eligible for the OAS pension and other benefits should apply online, by mail, or in person at a Service Canada office. They should also report any changes in their income, marital status, or address to Service Canada as soon as possible.
The OAS program is one of the ways that the government supports seniors and recognizes their contributions to society and the economy. By providing a monthly benefit that is indexed to inflation and a one-time payment for seniors aged 75 and over, the government is helping seniors live with dignity and security in retirement.
Source: (1) Old Age Security payment amounts – Canada.ca. https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html. (2) Old Age Security: Do you qualify – Canada.ca. https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/eligibility.html.