Key Takeaways
- The Old Age Security (OAS) pension is a monthly payment that eligible seniors can receive from the government of Canada.
- The OAS pension amount is indexed to inflation and adjusted quarterly based on the Consumer Price Index (CPI).
- In 2024, the OAS pension amount is expected to increase by 4.7%, from $697.07 to $729.58 per month, for those 65-74 years old.
- To qualify for the OAS pension, you must be 65 years or older, be a Canadian citizen or a legal resident, and have resided in Canada for at least 10 years since the age of 18.
- The OAS payment dates for 2024 are January 29, February 27, March 26, April 26, May 29, June 26, July 29, August 28, September 25, October 29, November 27, and December 20.
What is the OAS pension?
The Old Age Security (OAS) pension is one of the main pillars of Canada’s retirement income system. It provides a monthly payment to seniors who meet the age and residency requirements. The OAS pension is funded from general tax revenues and is not based on your work history or contributions.
The OAS pension is designed to help seniors maintain a basic standard of living and supplement other sources of income, such as the Canada Pension Plan (CPP), personal savings, investments, and workplace pensions.
The OAS pension is also the gateway to other benefits for seniors, such as the Guaranteed Income Supplement (GIS), the Allowance, and the Allowance for the Survivor. These benefits provide additional income support to low-income seniors and their spouses or common-law partners.
How much is the OAS pension in 2024?
The OAS pension amount is indexed to inflation and adjusted quarterly based on the Consumer Price Index (CPI). The CPI measures the change in the average cost of a basket of goods and services that Canadians typically buy. Indexing ensures that the OAS pension keeps up with the rising cost of living and preserves the purchasing power of seniors.
In 2024, the OAS pension amount is expected to increase by 4.7%, from $697.07 to $729.58 per month, for those 65-74 years old. This increase is based on the projected CPI growth for 2023, which is estimated at 4.7% by the Bank of Canada¹.
| Age group | Q1 (Jan-Mar) | Q2 (Apr-Jun) | Q3 (Jul-Sep) | Q4 (Oct-Dec) |
| 65-74 | $729.58 | $729.58 | $729.58 | $729.58 |
| 75-79 | $764.51 | $764.51 | $764.51 | $764.51 |
| 80+ | $799.44 | $799.44 | $799.44 | $799.44 |
The OAS pension amounts for those 75 and older are higher because of the one-time payment for older seniors that was announced in the 2021 federal budget. This payment of $500 will be made in August 2021 to OAS recipients who will be 75 or over as of June 2022. Starting in July 2022, these seniors will also receive a permanent increase of 10% to their OAS pension².
How do I qualify for the OAS pension?
To qualify for the OAS pension, you must meet the following criteria:
- Be 65 years old 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
If you are living in Canada, you must be a Canadian citizen or a legal resident at the time your OAS pension application is approved. If you are living outside Canada, you must have been a Canadian citizen or a legal resident on the day before you left Canada. You must also have resided in Canada for at least 20 years since the age of 18³.
In some cases, you may be able to count the time you spent working or living outside Canada as residence in Canada. This may apply if you:
- Worked for a Canadian employer, such as the Canadian Armed Forces or a bank, and returned to Canada within six months of ending your employment
- Turned 65 years old while still employed by a Canadian employer outside Canada and maintained your residence in Canada during your time abroad
- Have a spouse, common-law partner, or dependent who worked for a Canadian employer outside Canada and met the above conditions
- Lived or worked in a country that has a social security agreement with Canada and contributed to that country’s pension plan
If you are not sure whether you qualify for the OAS pension, you can contact Service Canada for more information.
IMPORTANT LINKS:
- What Expenses Can You Deduct from Your Rental Income? (Updated 2024)
- How to Get Your EITC Refund Faster in 2024
- 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
When will I receive my OAS pension payments?
The OAS pension payments are made on a monthly basis, usually on the last business day of each month. However, if the payment date falls on a weekend or a statutory holiday, the payment will be made on the previous or next business day.
The OAS payment dates for 2024 are as follows⁴:
- 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
You can choose to receive your OAS pension payments by direct deposit or cheque. Direct deposit is the fastest, safest, and most convenient way to get your payments. You can sign up for direct deposit online through your My Service Canada Account or by contacting Service Canada. If you opt for cheque, you will receive your payment by mail and you will need to cash it at a financial institution.
How do I apply for the OAS pension?
In most cases, you do not need to apply for the OAS pension as Service Canada will automatically enroll you if you are eligible. You will receive a notification letter the month after you turn 64, informing you that you have been automatically enrolled and when you can expect to receive your first payment.
If you do not receive a notification letter, you may need to apply for the OAS pension yourself. You can apply online through your My Service Canada Account or by mail using the Application for the OAS and the GIS (ISP-3550) form. You should apply at least six months before you want your OAS pension to start.
You will need to provide some documents to support your application, such as:
- Proof of age, such as a birth certificate, passport, or citizenship certificate
- Proof of identity, such as a driver’s license, health card, or social insurance number card
- Proof of legal status, such as a citizenship certificate, permanent resident card, or record of landing
- Proof of residence, such as a utility bill, bank statement, or lease agreement
- Proof of employment, if you worked for a Canadian employer outside Canada
- Proof of contributions, if you lived or worked in a country that has a social security agreement with Canada
You can find more information about the OAS pension application process on the Service Canada website⁵.
Frequently Asked Questions On $1,550 OAS Approval 2024
Q: How is the OAS pension amount calculated?
A: The OAS pension amount is based on how long you have lived in Canada after the age of 18. If you have lived in Canada for at least 40 years, you will get the full OAS pension amount. If you have lived in Canada for less than 40 years, you will get a partial OAS pension amount. The partial OAS pension amount is calculated by multiplying the full OAS pension amount by the fraction of 40 years that you have lived in Canada. For example, if you have lived in Canada for 30 years, you will get 30/40 or 75% of the full OAS pension amount.
Q: How is the OAS pension taxed?
A: The OAS pension is taxable income and you will receive a T4A(OAS) slip from Service Canada showing the amount you received and the amount withheld for income tax. You will need to report your OAS pension income on your income tax return. Depending on your income level, you may have to pay back some or all of your OAS pension through the OAS recovery tax, also known as the clawback. The clawback applies if your net income (excluding OAS) exceeds a certain threshold, which is $81,593 for 2022 and $86,912 for 2023. The clawback rate is 15% of the excess income and it reduces your OAS pension by the same amount. For example, if your net income (excluding OAS) is $90,000 in 2023 you will have to pay back 15% of ($90,000 – $86,912) or $462.12 of your OAS pension in 2023.
Q: How can I increase my OAS pension amount?
A: There are two ways you can increase your OAS pension amount:
Delay your OAS pension: You can choose to start receiving your OAS pension later than the age of 65, up to the age of 70. For every month you delay your OAS pension, you will get an increase of 0.6% to your OAS pension amount. This means that if you delay your OAS pension for five years, until the age of 70, you will get a 36% increase to your OAS pension amount. However, this option may not be suitable for everyone, as it depends on your life expectancy, income needs, tax situation, and other factors.
Apply for the GIS: If you have a low income and receive the OAS pension, you may be eligible for the Guaranteed Income Supplement (GIS), which is a monthly non-taxable benefit that tops up your OAS pension. The GIS amount depends on your marital status, your income, and your spouse’s income. The maximum GIS amount for 2022 is $936.97 per month for single seniors and $555.04 per month for each member of a couple. The GIS is adjusted quarterly based on the CPI, just like the OAS pension. You can apply for the GIS online through your My Service Canada Account or by mail using the Application for the OAS and the GIS (ISP-3550) form.
Conclusion
The OAS pension is a valuable source of income for many Canadian seniors. It provides a monthly payment that is indexed to inflation and adjusted quarterly. In 2024, the OAS pension amount is expected to increase by 4.7%, from $697.07 to $729.58 per month, for those 65-74 years old. To qualify for the OAS pension, you must be 65 years or older, be a Canadian citizen or a legal resident, and have resided in Canada for at least 10 years since the age of 18. The OAS payment dates for 2024 are listed above. You can apply for the OAS pension online or by mail, and you may be automatically enrolled by Service Canada if you are eligible. You can also increase your OAS pension amount by delaying your OAS pension or applying for the GIS, depending on your situation.
We hope this article has helped you understand the OAS pension and how it works. If you have any questions or comments, please feel free to leave them below. And don’t forget to check out our website, HustleHub, for more tips and resources on how to make the most of your retirement income. Thank you for reading and happy hustling! 😊
Source: (1) Benefits payment dates – Canada.ca. https://www.canada.ca/en/services/benefits/calendar.html. (2) CPP and OAS Payment Increase 2024. What To Expect. https://canpension.ca/articles/cpp-oas-2024. (3) OAS Payment Dates and Schedule Announced for 2024 – Savvy New Canadians. https://www.savvynewcanadians.com/oas-payment-dates-schedule-2024/.