The Old Age Security (OAS) pension is a monthly payment available to most people 65 years of age and older who meet the Canadian legal status and residence requirements.
Your employment history is not a factor in determining eligibility: you can receive the OAS pension even if you have never worked or are still working. However, you must have resided in Canada for the required minimum number of years to get the full pension.
Below are some key facts and information worth noting:
If you are living in Canada, you must:
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be 65 years old or older
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be a Canadian citizen or a legal resident at the time we approve your Old Age Security pension application, and
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have resided in Canada for at least 10 years after turning 18.
If you are living outside Canada, you must:
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be 65 years old or older
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have been a Canadian citizen or a legal resident of Canada on the day before you left Canada, and
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have resided in Canada for at least 20 years after turning 18.
Deferring your Old Age Security pension
As of July 2013, you can defer receiving your Old Age Security (OAS) pension for up to 60 months (5 years) after the date you become eligible for an OAS pension in exchange for a higher monthly amount. If you delay receiving your OAS pension, your monthly pension payment will be increased by 0.6% for every month you delay receiving it, up to a maximum of 36% at age 70.
If you choose to defer receipt of your OAS pension, you will not be eligible for the Guaranteed Income Supplement, and your spouse or common-law partner will not be eligible for the Allowance benefit for the period you are delaying your OAS pension.
Old Age Security Pension Recovery Tax:
If your income exceed the minimum threshold, you will have to repay a portion of the pension amount.
Your repayment calculation is based on the difference between your income and the threshold amount for the year. The first step is to figure out how much higher your income is than the threshold. You must repay 15 percent of that amount.
Example:
The threshold for 2014 is $71,592.
If your income in 2014 was $80,000, then your repayment would be 15 percent of the difference between $80,000 and $71,592:
$80,000 - $71,592 = $8,408
$8,408 x 0.15 = $1,261.20
You would have to repay $1,261.20 for the July 2015 – June 2016 period.
As of July 2013, you can defer receiving your Old Age Security (OAS) pension for up to 60 months after the date you become eligible for an OAS pension in exchange for a higher monthly amount.
If you delay receiving your OAS pension, your monthly pension payment will be increased by 0.6% for every month you delay receiving it, up to a maximum of 36% at age 70.
If you choose to defer receipt of your OAS pension, you will not be eligible for the Guaranteed Income Supplement, and your spouse or common-law partner will not be eligible for the Allowance benefit for the period you are delaying your OAS pension.
Example: Deferring for five years
Rita will be turning 65 in December 2013. If she decides to delay receiving her Old Age Security (OAS) pension for the maximum deferral period of 60 months, her monthly amount will increase by 36% at age 70 (0.6% x 60 months).
If Rita's entitlement is $549.89 per month, her increased monthly payment would be $747.85.
Guaranteed Income Supplement
The Guaranteed Income Supplement (GIS) provides a monthly non-taxable benefit to Old Age Security (OAS) recipients who have a low income and are living in Canada.
You qualify for the Guaranteed Income Supplement if you meet all of the following conditions:
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you are a legal resident of Canada
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you are receiving an Old Age Security pension
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your annual income (or in the case of a couple, your combined income) is lower than the maximum annual income.
If your income is less than the amounts given on the Old Age Security pension and benefits table above ($17,111 per person excluding OAS income), follow this link to find out how much GIS amount you are entitled to:
Search online for in-depth explanations concerning OAS pension and/or go to the CRA website at:
http://www.servicecanada.gc.ca/eng/services/pensions/oas/pension/index.shtml
Note: Changes to the age of eligibility - Starting in April 2023, the age of eligibility for the Old Age Security pension and the Guaranteed Income Supplement (GIS) will gradually increase from 65 to 67 over six years, with full implementation by January 2029. This change will affect people born in 1958 and later.
