The Old Age Security (OAS) pension is a monthly payment available to eligible seniors aged 65 and older in Canada. However, the amount received by each senior is not necessarily the same, as it depends on factors like residency in Canada, income, and eligibility for additional benefits.
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Basic OAS Amount
As of October 2024, the maximum monthly amount for the OAS pension is $727.67 for people aged 65 to 74 and $800.44 for people aged 75 and over but the actual amount a senior receives can vary. For instance:
- Those with fewer than 40 years of residence in Canada after turning 18 may receive a partial pension proportional to their years of residence.
- Low-income seniors may qualify for the Guaranteed Income Supplement (GIS), which provides additional financial support.
Factors Affecting OAS Payments
- Residency: To qualify for the full OAS pension, a senior must have lived in Canada for at least 40 years after age 18. Partial pensions are available for those who have lived in Canada for at least 10 years but less than 40 years.
- Clawback for High-Income Seniors: If a senior’s net annual income exceeds a certain threshold ($86,912 in 2024), their OAS payments may be reduced. This reduction, known as the “OAS Recovery Tax,” completely phases out payments for those with very high incomes.
- Age 75 and Over: Seniors aged 75 and older are eligible for a 10% permanent increase in their OAS payments, which started in July 2022. This is aimed at addressing the unique financial challenges faced by older seniors.
- Indexation: OAS amounts are indexed quarterly to the Consumer Price Index (CPI) to ensure the payments keep pace with inflation. This means the amount may change every January, April, July, and October.
- Deferring Payments: Seniors can defer their OAS payments beyond the age of 65. Each month the payment is deferred, the pension amount increases by 0.6%, up to a maximum of 36% if deferred until age 70.
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Additional Benefits
Eligible seniors can also apply for:
- Guaranteed Income Supplement (GIS): A monthly non-taxable benefit for low-income seniors.
- Allowance and Allowance for the Survivor: Available to low-income individuals aged 60–64 who are married to GIS recipients or are widowed.
The variations in OAS payments and additional benefits demonstrate that not all seniors receive the same amount, as payments are tailored to individual circumstances.
For further details on eligibility and application, visit the Government of Canada OAS page
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