The Old Age Security (OAS) program is a federal government initiative that provides a monthly payment to eligible individuals who are 65 years of age or older and have lived in Canada for a certain number of years. It is one of Canada’s largest and most popular retirement income programs. In this article, we will cover everything you need to know about the Old Age Security program.
Eligibility for the OAS program To be eligible for the OAS program, you must meet the following criteria:
- Age: You must be 65 years of age or older.
- Residency: You must be a Canadian citizen or a legal resident of Canada and have resided in the country for at least 10 years after the age of 18.
- Income: Your income level must be below a certain threshold to qualify for the full OAS pension amount. The threshold is subject to change and can be found on the Government of Canada’s website.
How much can you receive from the OAS program?
The OAS program provides a monthly pension payment to eligible individuals. The amount of the payment is determined by how long you have lived in Canada after the age of 18. As of 2021, the maximum monthly payment is $626.49. However, this amount is subject to change based on the annual cost of living adjustment.
How to apply for the OAS program?
You can apply for the OAS program up to six months before your 65th birthday. To apply, you must complete and submit an application form, which can be found on the Government of Canada’s website. You will also need to provide supporting documents, such as proof of age and residency.
What happens if you delay applying for OAS?
If you delay applying for OAS, you may be eligible for a higher monthly payment. The OAS program allows you to defer your pension for up to five years after you become eligible. For each month you defer, your monthly payment will increase by 0.6%, up to a maximum of 36% at age 70.
OAS clawback If your income exceeds a certain threshold, you may be subject to an OAS clawback. The clawback is a tax on your OAS pension and is calculated based on your net income. For the 2021 tax year, the clawback threshold is $79,845. If your net income exceeds this amount, you may be subject to a clawback.
In conclusion, the Old Age Security program is an important retirement income program for eligible individuals who are 65 years of age or older and have resided in Canada for a certain number of years. If you are eligible, it is important to apply on time to avoid any delays in receiving your pension payment. Additionally, it is important to be aware of the OAS clawback and how it may affect your pension payment. For more information, visit the Government of Canada’s website.