The Old Age Security (OAS) payment is a critical part of Canada’s retirement income system since it provides financial assistance to senior citizens. But how much can you receive from OAS?
From the eligibility criteria to the amount of OAS payment you can expect, keep reading this article for all the details!
How Much Could I Receive From OAS Payment?
The amount of Old Age Security (OAS) payment you can receive depends on several factors. These include your age, years of residency, and income.
As of July 2023, those between 65 and 74 can receive a monthly payment of $698.60 per month. That’s as long as your net annual income is less than $134,626.
Canadians aged 75 years or older can receive $768.46 if they make a yearly income of less than $137,331.
However, if your partner doesn’t receive any pension, the OAS payment can be between $1,000 and $1,326, depending on your annual income. Surviving spouses, on the other hand, receive a maximum of $1,581 per month.
How Can I Find Out How Much OAS Payment I Will Be Receiving?
Several tools can help you estimate your OAS payment, including:
My Service Canada Account
My Service Canada Account (MSCA) is probably the easiest option to find out your OAS payment. Not only that, but you can access other pension plans and learn about any updates.
You’ve got three methods to register on the MSCA platform. You can use your GCKey, bank information, or provincial ID. However, the latter option is for Alberta and British Columbia residents only.
Old Age Security
Simply contact the Old Age Security Program to inquire about how much you will receive. That’s your best option if you’re not eligible for full OAS payments.
You can contact this department online through the website or by mail. Alternatively, you can reach them over the phone or in person.
Online OAS Calculator
Aside from the above services, you can use the online OAS calculator to know if you’re eligible and estimate the payment you can receive.
The process is pretty straightforward. All you need to do is enter the required information, such as age, residence history, and monthly income, to get your OSA payment.
How Do I Apply to Begin Receiving My OAS Benefits?
Applying for OAS payments can be done online or in person. After you receive a letter about the OAS, head to your MSCA. Then, sign up, follow the online application prompts, and wait for the office’s response.
Alternatively, you can print and complete the paper form. Then, mail it or bring it to your nearest Service Canada office.
When Can I Begin Receiving OAS?
Receiving your OAS payment depends on your preference. You can request the pension any month after your 65th birthday. However, you can schedule it later if you haven’t met the minimum residence requirement yet.
You can also delay the OAS payment until you’re 70 to increase it. In that case, you need to inform the office of this delay no later than six months after you turn 65 years old.
Does the Amount of OAS I Recieve Change Depending on the Age I Take OAS?
Yes! The longer you wait, the higher the OAS payment. Generally, you’ll receive a raise of 0.6% for each month or 7.2% for each delayed year.
According to the last payment adjustment in July 2023, here’s a detailed explanation of the amount you could receive overtime:
| Age | Monthly OAS Payment |
| 66 | $748.90 |
| 67 | $799.20 |
| 68 | $849.50 |
| 69 | $899.80 |
| 70 | $950.10 |
What Happens if I Take OAS Before Age 65?
You can’t take OAS payments before the age of 65. To be eligible for this pension, you need to fulfill two primary requirements: the age limit and residence years.
Aside from living in Canada, you need to be at least 65 to take the OAS payment. As for your residence history, you should have completed 10 years in Canada after turning 18.
Those living outside Canada can qualify for OAS payments if:
- They’ve lived in Canada for 20 years after turning 18
- They work in countries that have social security agreements with Canada
What Happens if I Take OAS After Age 65?
Your OAS pension will increase by 7.2% annually if you choose to take it after 65.
That said, the Old Age Security pensions are reviewed and adjusted in January, April, July, and October.
According to the Canadian government, OAS payments are expected to increase by 1.3% in the last quarter of 2023.
Does OAS Increase Alongside the Cost of Living?
Yes, OAS monthly rates increase along with the cost of living. The exact amount is estimated using the Consumer Price Index every quarter of the year.
This raise is irreversible, meaning the OAS payment won’t decrease if living costs go down.
When Are the OAS Payment Dates?
OAS payment dates can vary depending on the payment method. Direct deposits to your account arrive on the dates announced on the Government of Canada’s website. Receiving the payment through the mail takes longer.
Here are the scheduled OAS payment dates for 2023:
- January 27
- February 24
- March 29
- April 26
- May 29
- June 28
- July 27
- August 29
- September 27
- October 27
- November 28
- December 20
Are OAS and CPP the Same Thing?
No, Old Age Security (OAS) payments and the Canadian Pension Plan (CPP) aren’t the same thing. The former is universal—anyone living in Canada for 10 years who is at least 65 is eligible for this plan.
CPP, on the other hand, is for working citizens who have paid for this benefit throughout their working years.
FAQs
Q. Can you receive OAS and CPP at the same time?
Yes! Since OAS and CPP are separate benefits, you can receive them at the same time. Of course, that’s as long as you meet the eligibility criteria for both.
Q. Can OAS be clawed back?
Yes, OAS can be clawed back in the following cases:
- Your annual retirement income is above $81,761
- Your non-resident tax is 25% or more
If you meet these requirements, you have to pay 15% of the difference between your net income and the latest threshold amount.
Q. Do all Canadians qualify for OAS?
All Canadians qualify for OAS. That’s as long as they’re 65 or older and have been living in the country for at least 10 years after turning 18.
Q. What happens to my OAS when I die?
Unlike CPP, there are no OAS survivor benefits.
When you die your OAS payments will stop. And your spouse or other beneficiaries will not receive any money from OAS.
Wrapping Up
As of 2023, you can expect a monthly OAS payment between $698 and around $1,000, depending on your age and residence history. The pension can increase to over $1,500 if you’re a surviving spouse.
Using the tools provided in the article, you can calculate and learn how to increase your OAS payment. That way, you can maximize your financial well-being in your golden years!