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Old Age Pension Canada: The Old age security pension (OAS) program is a universal retirement pension available to the majority of Canadian inhabitants who have attained the age of 65. This pension is reinforced by a Guaranteed income supplement (GIS) for low-income citizens, which is added to their monthly OAS payment.
Certain low-income spouses and survivors of OAS recipients are eligible to receive an income-tested allowance as long as they are 60-64 years of age. The old age security pension is inspected in January, April, July, and October to review increases in the cost of living as measured by the Consumer Price Index.
Keep reading to know more about Old Age Pension Canada.
The Terms You Should Know About Old Age Pension Canada
OAS Pension:
Monthly benefit payment is provided to Canadian citizens over 65 years of age.
Guaranteed income supplement:
A Monthly non-taxable benefit for OAS pension beneficiaries who have a low income and is Canadian citizens.
Allowance :
A Monthly benefit that is available to low-income individuals 60-64 aged persons whose spouse or common-law partner receives the Guaranteed income supplement.
The Old Age Security(OAS) Pension
In this old age pension Canada, monthly benefit payment is provided to Canadian citizens over 65 years of age under the Old Age Pension Canada.
Eligibility Criteria:
To be eligible for an Old age security pension:
a) Your age must be more than or equal to 65 years
b) You must be a Canadian resident/ permanent resident of Canada when your pension application is approved
c) You must be a Canadian resident for at least ten years since the age of 18.
If you are applying for the pension from outside Canada:
a) You must have been a Canadian citizen or a resident when you left Canada
b) You must have lived in Canada for at least 20 years since the age of 18.
Note: If you are 60 years old, live in Canada, and have paid into the Canada Pension Plan (CPP) or Quebec Pension plan program for 40 years of age or crossed 40 years, you will receive a letter from Service Canada, and they will notify you that you will be automatically enrolled for the OAS pension.
Full Pension
If you have lived in Canada for at least 40 years after the age of 18, then you are eligible to apply for a full pension, and you can get the full old age pension Canada.
If you didn’t, then if you are 25 years or older and are living in Canada, then you have to show a valid Canadian immigration Visa on or before July 1, 1977.
Partial Pension
You may qualify for a partial pension. If you lived in Canada at least 10 years after the age of 18, then you are qualified to get a partial old age pension Canada.
The Guaranteed Income Supplement
The old age pension Canada provides a monthly non-taxable benefit for OAS pension beneficiaries who have a low income and are Canadian citizens.
Eligibility for the GIS:
a) You must qualify to receive an OAS pension( full or partial pension payment)
b) Resident in Canada.
As you start getting an OAS pension, then you may start receiving a Guaranteed income supplement too. You will receive the amount according to your annual income or the combined income of you and your spouse or common-law partner. Your GIS amount may vary each year depending upon your annual income.
Note: When your pension payments start, and then if you leave Canada for more than six months, your payment process will stop automatically. Service Canada will review your account each year to check your eligibility if you apply for the GIS. And you have to file an income tax return by April 30th each year.
You may also receive the GIS if you qualify for the OAS pension through the terms of a Social Security Agreement.
The Allowance
The old age pension Canada has a monthly benefit that is available to low-income individuals 60-64 aged persons whose spouse or common-law partner receives the Guaranteed income supplement. The payment of the allowance will stop when the person receiving it reaches the age of 65(the age of eligibility for OAS pension and Guaranteed income supplement).
Eligibility for the Allowance:
a) You must be between the age of 60-64;
b) You must be a Canadian resident or legal resident when your application is approved; and
c) You must have lived in Canada for at least ten years since the age of 18.
# Social security Agreement may help you to qualify if you have not lived in Canada long enough.
Note: Your Allowance payment will stop if you or your spouse or common-law partner leave Canada for more than six months. It will resume after you return to live in Canada.
The Allowance For The Survivor
The old age pension Canada has a monthly profit that’s out there for the Canadian citizens aged 60-64 years who have low financial gain and whose spouse or common-law partner has died. The payment of the allowance will stop when the person receiving it reaches the age of 65(the age of eligibility for OAS pension and Guaranteed income supplement).
Eligibility for the Allowance for the survivor:
a) You must be between the ages of 60 and 64;
b) You must be a Canadian citizen or legal resident of Canada when your application is approved;
c) You must have lived in Canada for at least ten years since the age of 18; and
d) You must not have remarried or started a common-law partner relationship since your spouse or common-law partner has died.
# International Social Security Agreement may help you to qualify if you have not lived in Canada long enough.
The Icy Canada team talked to Marty Burbank, Owner of OC Elder Law, on how the Old Age Security Pension enhances the quality of life for Canadian seniors. Here is what he said:
“As a seasoned elder law attorney and founder of OC Elder Law, I have extensive experience assisting seniors with estate planning and securing their financial futures, which parallels the objectives of programs like Old Age Security (OAS) in Canada.
These types of programs are pivotal because they provide a foundational income for seniors, ensuring they can cover basic living expenses and reduce financial anxiety as they age.
Through my practice, I’ve witnessed how similar benefits in the U.S., like Social Security, dramatically affect seniors’ quality of life. For instance, one client was able to finally afford the necessary home modifications for mobility due to the consistent income provided by such a program.
This not only improved his physical safety but also his mental health, as he could remain independent and in his own home.
In managing veterans’ benefits at my firm, I’ve seen similar impacts from government assistance programs. Veterans who access benefits designed for their age group display significantly better outcomes in terms of health, social engagement, and overall well-being compared to those who do not.
This underscores the importance of structured support systems like OAS for the elderly population, enhancing their quality of life beyond just financial metrics. Programs that assure a safety net can transform the senior living landscape from surviving to thriving.”
Applying
You can apply for the old age pension Canada by:
a) Vising your nearest Service Canada center
b) Mailing after completing the form to Service Canada.
You may need to attach the following documents to your application:
a) Birth certificate
b) Valid transport
c) Immigration or foreign official documents
d) Immigration visas/ records
e) Letters from past employers
f) Band council letters
g) Other official documents from your country of origin
Automatic Enrollment for the OAS Pension
You may be automatically enrolled for the old age pension Canada if you are 64 years old Canadian citizen who has participated in the Canada Pension plan (CPP) and/or Quebec pension plan for at least 40 years.
You will be notified before turning 65 years of age with the information that has been used to determine your eligibility.
If the information is inaccurate, then you can make corrections before turning 65 years of age.
Service Canada may ask you to complete an application form before turning 65 years of age only in some cases.
OAS pension start date:
You can choose when you want to start getting a pension between the age of 65-70 years. You can also delay your pension payment past the age of 70 years, but your pension amount will not increase further.
Note: You will not be eligible for a Guaranteed income supplement if you choose to delay your OAS pension.
Legal Status:
You must have legal status in Canada for an OAS pension.
Required Documentation
If you are born and raised in Canada all your life, in such a case, you do not need to prove your legal status. They will contact you if any documentation is required for the old age pension Canada.
If you were born outside Canada, a copy of the following documents may be required:
- A certificate of Canadian citizenship or Canadian passport for a Canadian Citizen;
- A Canadian Immigration document or Canadian Immigration stamp on your passport for a permanent resident.
- A temporary Resident’s permit for a temporary resident of Canada.
Residence History
a) In order to get the old age pension Canada, you must list all the places where you have lived from age 18 to the present and the period for each, and try to provide the exact date of entry and departure if you have not lived in Canada all your life.
b) Apply for the Guaranteed income supplement
c) The Guaranteed income supplement is based on your income from the previous year. Service Canada inspects your eligibility every year.
Applying
You have to complete the above documentation, and then you can apply for the Guaranteed income supplement.
Income
You have to indicate if your spouse or common-law partner has retired, had a reduction in pension income in the last two years, or expects a reduction in pension income over the next two years. In such a case, if you choose “yes,” then you will receive a special form to help you estimate the income you expect to receive. Service Canada will base your benefit amount on the current year if it works in your favor.
Foreign Income
Foreign income includes wages, employer pensions, social security benefits, dividends, investments, and rental income. Any foreign income you or your spouse or common-law partner receives each year, in such a case, you have to report to Service Canada.
Marital Status
a) If you are married, in such a case, you must provide your marriage certificate to confirm your marital status. And if you are in a common-law relationship, then you have to complete and submit a Statutory Declaration of Common-Law Union(ISP3004).
b) If your spouse or common-law partner is living apart from you for reasons beyond your control, then in such a case, you have to complete and submit a statement
Taxes and your old age security pension
You are not required to have a pay income tax from your monthly OAS payment, but you may choose this option to reduce your tax payable when you file your annual income tax return.
But if you want to pay income tax from your OAS pension payment, you can indicate this with a dollar sign added to the amount you have to pay.
These are the things that you need to know about guaranteed income supplements in the old age pension Canada.
We interviewed Kim Christink, Founder and Owner of Bayridge Counselling Centres, on this. Here is what he had to say:
“My grandmother was a fiercely independent lady, and she always used to impress upon the point that one needs to save for his or her retirement.
As she grew older, those savings were eaten away by unforeseen medical expenses and the cost of assisted living, which was rising faster than anticipated.
Now, the Old Age Security pension and the Guaranteed Income Supplement are her lifelines. She would be forced to either lean heavily on the family or else sacrifice familiar surroundings for a less desirable facility.
She would have been exposed to the lowest quality of life if it weren’t for these programs.
Finance continued to be a concern, but the baseline from which the OAS and GIS issued went a long way to make it less stressful. She could afford modest outings with friends, and this played a major part in the health of her mental condition.
Knowing that someone was taking care of basic needs like that gave her a little feeling of security and control that she never would have been able to afford.
I realized that the value of such programs should not be measured in dollars when viewing my grandmother’s situation.
This will jeopardize the ability of seniors to sustain an independent environment and be able to develop social relationships and, probably, and above all, sustain what worth and independence they have left from their younger years.”
Guaranteed Income Supplement
You have to apply separately for the Guaranteed income supplement in the old age pension Canada if-
a) You already receive the Old Age Security pension but have never applied for the guaranteed income supplement before
b) You choose not to apply for it while filing the Old age security pension and Guaranteed income supplement.
Documentation to attach to your application:
Proof of Marriage can include:
a) A marriage certificate
b) An official copy of the church, mosque, temple, etc
c) A civil record of marriage as issued by a competent authority;
d) Marriage registration forms
Proof of common-law union includes:
a) A Completed Statutory Declaration of Common-law competent Union (ISP3004)
b) Certificate of Civil Union in Quebec
c) Domestic Partners Certificate in Nova Scotia and Saskatchewan, Certificate of Common-law Relationship in Manitoba, Adult Interdependent partner Agreement in Alberta
d) Marital Status claimed on a current ISP benefit
e) Income Tax and Benefit Returns
f) Provincial registration forms
g) Cohabitation or prenuptial agreement/ joint wills or bank accounts.
- Please make sure that your name, address, Social Insurance Number, and telephone are correct.
- You must confirm your marital status
- Inform if you or your spouse or common-law partner has been out from Canada for more than 6 months.
- Give your income report
- If your spouse or common-law partner has retired, indicate this in your application form.
- You and your spouse or common-law partner must sign the form. If you are unable to sign, a mark (X) is acceptable.
Take these things into consideration before you apply for the guaranteed income supplements for the old age pension Canada.
After you Apply
When to contact Service Canada
You have to contact Service Canada if:
- You need to do the correction or provide information not previously disclosed
- You move
- Your banking information changes
- Your marital status changes
- You are involuntarily separated
- A beneficiary dies
#If your spouse or common-law partner is no longer living with you beyond your control, such as when he/she has to move into a nursing home or long-term care facility, you may be benefited from receiving a higher amount.
Updating your personal information with Service Canada
You can view or update your information online through My Service Canada Account (MSCA).
You can use MSCA to:
- Change your mailing address or number;
- Sign up for a direct deposit or update your banking account information.
When you can expect to hear from Service Canada
Service Canada will contact you by mail to request additional information or documentation to process your application.
When you can expect to receive your benefit payments
If you request to receive old age pension Canada payments by direct deposit, payment will be made to your account on the third-from-last working day of the month. Otherwise, a check will be mailed to you during the last three banking days of each month.
Receiving your OAs pension outside of Canada
Your Old Age Security pension can be paid outside of Canada if:
a) You have lived in Canada for at least 20 years after the age of 18;
b) You have lived or worked in a country that Canada has an agreement with, and you fulfill the requirement of 20 years of residence.
If you do not meet old age security pension requirements, then you only get an Old Age Security pension for 6 months outside of Canada. And once you return to Canada, your pension will resume.
If someone else contacts Service Canada on your behalf
If you want someone to act or contact on your behalf Service Canada, you can complete the Consent to Communicate Information to an authorized person form and mail it to the nearest service Canada office.
This form does not allow the person to apply for benefits, change their payment address, or request/ change the withholding of tax.
If you are incapable of managing your affairs, another person or agency may be appointed to act on your behalf.
These are the things that you should know about old age pension Canada. For more information, contact the official site of Service Canada.
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Guest Author: Saket Kumar
Last Updated on by Saket Kumar
