As December rolls in, Canadians aged 65 and older can look forward to an earlier-than-usual Old Age Security (OAS) payment. This timely financial boost is designed to help cover seasonal expenses, making the holiday season a little brighter for retirees. Here’s everything you need to know about OAS payments this month — from eligibility requirements to payment details and tips for ensuring timely deposits.
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What Is Old Age Security (OAS)?
OAS is a federal government pension program designed to provide financial support to Canadians aged 65 and older. Unlike the Canada Pension Plan (CPP), OAS eligibility doesn’t depend on work history. It serves as a key element of Canada’s retirement income system, helping seniors meet their day-to-day expenses.
December 2024 OAS Payment Date
For December 2024, OAS payments will be deposited into recipients’ bank accounts on Friday, December 20 — about a week earlier than usual. This adjustment ensures that seniors can access their funds before the holidays.
If you’re already enrolled, there’s no need to do anything — your payment will arrive automatically.
How Much Can You Expect to Receive?
The amount you receive from OAS depends on your age and income:
- Aged 65–74: Maximum monthly payment of $727.67
- Aged 75 and older: Maximum monthly payment of $800.44
OAS payments are indexed quarterly (January, April, July, and October) to keep pace with inflation, ensuring they remain aligned with the rising cost of living.
Income Limits:
To qualify for OAS, your net world income must stay below these thresholds:
- $148,451 for those aged 65–74
- $154,196 for those aged 75 and older
Use the CRA’s payment estimator to calculate your expected benefit based on your income.
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Is OAS Taxable?
Yes, OAS payments count as taxable income. While taxes aren’t automatically deducted from your monthly payment, you can request voluntary tax deductions by:
- Logging into your My Service Canada Account
- Completing the Request for Voluntary Federal Income Tax Deductions (CPP/OAS) form
If taxes aren’t deducted monthly, you may need to pay them quarterly or during tax season. For filing purposes, residents receive a T4 slip, while those living abroad receive an NR4 slip.
Eligibility Requirements for OAS
You may qualify for OAS if you meet these criteria:
- Age: At least 65 years old.
- Residency: Hold Canadian citizenship or legal residency at the time of application.
- Living in Canada: Lived in Canada for at least 10 years after age 18.
If you’re living outside Canada, you may still qualify if:
- You were a Canadian citizen or legal resident before leaving.
- You lived in Canada for at least 20 years as an adult.
How to Apply for OAS
Many Canadians are automatically enrolled in OAS upon turning 65. However, if you haven’t received a notice from Service Canada by the month following your 64th birthday, you may need to apply manually:
- Online: Use your My Service Canada Account to complete the application.
- Hard Copy: Submit a paper application form with certified copies of the required documents to your local Service Canada office.
Tips for Receiving Payments on Time
To avoid delays, especially during disruptions like the Canada Post strike, consider switching to direct deposit. This method ensures your payment is securely transferred to your bank account without relying on mail delivery.
How to Set Up Direct Deposit:
- Online: Log in to your My Service Canada Account.
- Phone: Call Service Canada at 1-800-277-9914.
- In-Person: Visit a local Service Canada office with your Social Insurance Number (SIN) and banking details.
Upcoming OAS Payment Dates for 2025
Looking ahead, here’s the OAS payment schedule for early 2025:
- January 29, 2025
- February 26, 2025
- March 27, 2025
- April 28, 2025
- May 28, 2025
- June 26, 2025
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Plan Ahead and Maximize Your OAS Benefits
The Old Age Security program remains a vital support for millions of Canadian seniors. Whether you’re already receiving payments or preparing to apply, understanding the details can help you get the most out of this benefit.
Stay informed about updates to payment amounts, tax considerations, and eligibility criteria to ensure you’re maximizing your retirement income. For any questions, visit the Service Canada website or contact them directly
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