The Old Age Security (OAS) program is a crucial part of Canada’s retirement system, offering monthly payments to eligible seniors. It’s designed to provide financial support to those aged 65 and older, helping them cover living expenses like housing, food, and medical care.
As we approach 2024, it’s important to understand the OAS payment schedule and the eligibility criteria to make sure you receive your payments on time.
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OAS Payment Schedule for 2024 and 2025
OAS payments are made monthly, with specific dates set each year. For 2024, these dates have already been fixed, and understanding them is crucial to ensure timely receipt of your benefits.
2024 OAS Payment Dates
| Month | Payment Date |
|---|---|
| January | 29th |
| February | 26th |
| March | 27th |
| April | 28th |
| May | 28th |
| June | 26th |
| July | 29th |
| August | 27th |
| September | 25th |
| October | 29th |
| November | 26th |
| December | 22nd |
Note: If an OAS payment date falls on a holiday or weekend, payments will be made on the preceding business day.
Who Is Eligible for OAS?
To receive OAS, you must meet the following criteria:
- Age: You must be 65 years or older.
- Residency:
- If you live in Canada, you must have lived in the country for at least 10 years after turning 18.
- If you reside outside Canada, you need to have lived in the country for at least 20 years after age 18.
Most people are automatically enrolled in OAS as long as they meet the age and residency requirements. If you don’t receive an enrollment letter by age 64, you may need to apply for it.
How Much Will You Receive from OAS?
OAS payments are adjusted quarterly based on inflation, and the amount you receive depends on several factors, including the number of years you have lived in Canada after the age of 18.
Maximum OAS Payments for 2024
- For seniors 65-74 years old, the maximum monthly OAS payment is $727.67.
- For seniors 75 and older, the monthly OAS payment increases to $800.44.
Factors That Affect OAS Amounts:
- Residency: To get the full benefit, you must have lived in Canada for 40 years after turning 18. If you’ve lived in Canada for fewer years, you may receive a partial benefit.
- Income: High-income earners may face an OAS clawback, where they are required to repay a portion of their benefits.
OAS Clawbacks: How They Work
If your annual income exceeds a certain threshold, you may need to repay part or all of your OAS benefits through the OAS clawback (also known as the pension recovery tax).
In 2024, the threshold for the clawback is $86,912 for a single individual. For every dollar earned over this amount, 15% of the excess is deducted from your OAS payment.
Strategies to Avoid OAS Clawbacks:
- Pension Income Splitting: Couples can share their pension income to lower their combined taxable income.
- Income Management: Avoid withdrawing large sums from retirement accounts that could push your income over the threshold.
- Consult a Financial Advisor: A financial expert can help you manage your income in a tax-efficient way.
Guaranteed Income Supplement (GIS) for Low-Income Seniors
The GIS is available to low-income seniors who are already receiving OAS. The amount of GIS you receive is determined by your income and whether you have a spouse or common-law partner who also receives OAS.
GIS Eligibility:
- For a single senior, your annual income must be below $21,768 to qualify for GIS.
- For couples, the combined income threshold can be as high as $52,176, depending on whether both partners receive OAS.
GIS Payment Rates:
- Single seniors may receive up to $1,086.88 per month.
- Couples may receive $654.23 per month if both partners receive full OAS.
Understanding your OAS payments and their schedules is crucial for managing your finances in retirement. By staying informed about your eligibility, payment dates, and the impact of income on your benefits, you can plan more effectively for your future.
Be sure to regularly check official government websites or reach out to Service Canada for updates on your OAS, GIS, and CPP payments.
How do I know if I qualify for OAS?
To qualify for OAS, you need to be 65 or older and meet the residency requirements (10 years in Canada after 18 if living in the country, 20 years if living abroad).
Can I delay my OAS payments?
Yes, you can delay your OAS payments up to age 70. For every month you delay beyond 65, your payments increase by 0.6%, resulting in a 36% increase in payments by age 70.
Is OAS taxable?
Yes, OAS payments are taxable. You can choose to have taxes deducted directly from your monthly payments or make quarterly tax payments based on your total income.
