Key Takeaway Box
- CPP and OAS are two of the main sources of income for Canadian retirees.
- When your spouse dies, you may be eligible for survivor benefits from CPP and OAS, depending on your age, income, and marital status.
- CPP survivor benefits are based on how much and how long your spouse contributed to the plan, and they may be combined with your own CPP retirement or disability benefits.
- OAS survivor benefits are based on your income and whether you meet the eligibility criteria for the Allowance for the Survivor program.
- To receive survivor benefits, you need to apply to Service Canada and provide the required documents, such as the death certificate and proof of marriage or common-law relationship.
Hey Hustlers, losing a spouse is one of the most difficult and painful experiences in life. Not only do you have to deal with the emotional and personal loss, but you also have to face the financial implications of losing a partner.
One of the questions that many Canadian retirees have is what happens to their CPP and OAS benefits when their spouse dies. CPP and OAS are two of the main sources of income for seniors in Canada, and they can make a big difference in your quality of life.
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In this article, we will explain how CPP and OAS survivor benefits work, how much you can expect to receive, and how to apply for them. We will also share some tips and resources from HustleHub, the best platform for Canadian entrepreneurs and professionals, to help you manage your finances and plan for the future.
What are CPP and OAS Benefits?
Before we dive into the survivor benefits, let’s quickly review what CPP and OAS are and how they work.
CPP Benefits
The Canada Pension Plan (CPP) is a contributory program that provides monthly payments to eligible Canadians who have worked and paid into the plan. The amount you receive depends on how much and how long you contributed to the plan, and when you start receiving the payments.
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You can apply for CPP retirement benefits as early as age 60 or as late as age 70. The earlier you start, the lower your monthly payments will be. The later you start, the higher your monthly payments will be. The standard age to start receiving CPP benefits is 65.
In addition to retirement benefits, CPP also provides disability benefits, survivor benefits, and children’s benefits. We will focus on the survivor benefits in this article.
OAS Benefits
The Old Age Security (OAS) program is a non-contributory program that provides monthly payments to eligible Canadians who are 65 years or older and meet the residency requirements. The amount you receive depends on your income and how long you have lived in Canada.
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Unlike CPP, you do not have to work or pay into the OAS program to qualify. However, you may have to pay back some or all of your OAS benefits if your income exceeds a certain threshold. This is called the OAS recovery tax or clawback.
In addition to the basic OAS pension, there are three additional benefits that you may qualify for: the Guaranteed Income Supplement (GIS), the Allowance, and the Allowance for the Survivor. We will focus on the Allowance for the Survivor in this article.
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What are CPP and OAS Survivor Benefits?
When your spouse dies, you may be eligible for survivor benefits from CPP and OAS, depending on your age, income, and marital status. These benefits are designed to help you cope with the loss of income and maintain your standard of living.
CPP Survivor Benefits
The CPP survivor benefits are paid to the legal spouse or common-law partner of the deceased contributor. The amount you receive depends on whether you are younger or older than 65, how much and how long your spouse contributed to the CPP, and whether you receive other CPP benefits.
There are three types of CPP survivor benefits:
- The death benefit: a one-time lump-sum payment of up to $2,500, paid to the estate of the deceased contributor or to the person who paid for the funeral expenses.
- The survivor’s pension: a monthly payment that varies depending on your age and the amount of CPP retirement pension that your spouse was receiving or would have received at age 65. If you are 65 or older, you will receive 60% of your spouse’s CPP pension. If you are younger than 65, you will receive a flat-rate portion plus 37.5% of your spouse’s CPP pension.
- The children’s benefit: a monthly payment of $265.50 per child under 18, or under 25 if they are full-time students, paid to the person who is responsible for their care and upbringing.
If you already receive a CPP retirement pension or disability pension, the survivor’s pension will be combined into a single monthly payment. However, you cannot receive a full survivor’s pension while also receiving a full retirement pension or disability pension. The combined benefit is subject to a maximum limit, which is $1,306.57 for 2023.
OAS Survivor Benefits
The OAS survivor benefits are paid to the spouse or common-law partner of the deceased OAS pensioner. The amount you receive depends on your income and whether you meet the eligibility criteria for the Allowance for the Survivor program.
The Allowance for the Survivor is a monthly payment of up to $1,436.76 for 2023, paid to low-income seniors who are 60 to 64 years old, whose spouse or common-law partner has died, and who are not yet eligible for the OAS pension. To qualify, you must meet the following conditions:
- You are a Canadian citizen or a legal resident.
- You live in Canada and have lived in Canada for at least 10 years since the age of 18.
- Your annual income is below $26,064 for 2023.
The Allowance for the Survivor is reduced by 75 cents for every dollar of income you have above $2,496 for 2023, and it stops completely when your income reaches $26,064 for 2023.
If you are already receiving the OAS pension, you will not receive the Allowance for the Survivor. However, you may be eligible for the GIS, which is a monthly payment of up to $936.76 for 2023, paid to low-income seniors who receive the OAS pension. The GIS is also reduced by 50 cents for every dollar of income you have above $18,744 for 2023, and it stops completely when your income reaches $19,608 for 2023.
How to Apply for CPP and OAS Survivor Benefits?
To receive survivor benefits from CPP and OAS, you need to apply to Service Canada and provide the required documents, such as the death certificate and proof of marriage or common-law relationship. You can apply online, by mail, or in person at a Service Canada office.
You should apply as soon as possible after the death of your spouse, as some benefits are not retroactive and may be lost if you delay. For example, the CPP death benefit must be applied for within 60 days of the date of death, and the OAS survivor benefits must be applied for within 11 months of the date of death.
You can find more information and application forms on the Service Canada website or by calling 1-800-277-9914.
Tips and Resources from HustleHub
We hope this article has helped you understand what happens to your CPP and OAS benefits when your spouse dies and how to apply for survivor benefits. Losing a spouse is hard enough, and you don’t need to worry about your finances on top of that.
At HustleHub, we are here to support you and help you achieve your financial goals. Whether you are a retiree, an entrepreneur, or a professional, we have the best tips and resources for you to manage your money, grow your business, and plan for the future.
Here are some of the things you can find on our platform:
- A comprehensive guide on how to create a budget and track your expenses, so you can live within your means and save for your retirement.
- A list of the best investment options for seniors, so you can grow your wealth and generate passive income.
- A comparison of the best credit cards and bank accounts for seniors, so you can save on fees and earn rewards.
- A review of the best insurance products for seniors, so you can protect yourself and your loved ones from unexpected events.
And much more!
To join our vibrant community of Hustlers, visit our website at HustleHub and sign up for our newsletter. You will also get access to exclusive offers and discounts from our partners.
Don’t let the loss of your spouse stop you from living your best life. With HustleHub, you can hustle your heart out and achieve your dreams.
Source: (1) Survivor’s Pension – Canada.ca. https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-survivor-pension.html. (2) Cancel Canada Pension Plan and Old Age Security benefits after a death. https://www.canada.ca/en/services/benefits/publicpensions/cpp/cancel-cpp.html.