Most importantly, a very big component of the retirement income in Canada is the OAS program. Financial assistance is offered to the elders aged 65 and above through the OAS program. With most important program changes coming into effect in 2025 comes a new direct deposit cap to $2,350 as well. Therefore, knowing the OAS program is more important today than ever before. In all, we like to provide as much information available so that one and his families can make optimal use of such a program.
The OAS about the program
The OAS is a federal pension system that is established for the security and comfort of old-age citizens. Since it is a general tax-funded program, which proves to be contrary to the contribution-based schemes- CPP, OAS can be accessed by all those who have crossed the age criterion and also have fulfilled the residence condition.
OAS payments 2025 key features:
1. Amount of OAS payment:
– OAS can go as high as $727.67 per month for a senior between 65 to 74 years, while for seniors aged 75 and above, the maximum can go up to $800.44.
2. Supplementary benefits:
The additional support through GIS can be added to the benefit if a senior is considered low income; hence, making the total amount of monthly allowance as high as $2,350.
3. Need adjustment :
The payments of OAS increase every quarter by the inflation rate. It is simply known as a Consumer Price Index (CPI).
4. Options
As a deferral of OAS, you will receive 0.6% extra each month. The amount is 36% upon reaching age 70.
Eligibility Conditions for OAS
1. Eligibility by Age
– Being eligible in terms of age to receive OAS is at 65 years and above. Payment rises to seniors over 75 years old.
2. Residence Requirements
– You must be a Canadian citizen or a landed immigrant to qualify for OAS. You may be outside Canada and qualify for OAS if you have spent more than 20 years since you attained age 18 in Canada.
3. Residence Period:
– A person needs to live in Canada for 40 years before collecting the full OAS pension benefit. If a person resides in Canada for more than 10 years, he or she may qualify for a partial OAS pension.
4. Income Threshold:
OAS payments are clawed back tax for high-income earner. Phased in as earning reaches $90,997 to zero at $147,418 in 2024 end.
OAS payment for 2025:
OAS Payments shall be made on the third to last business day of every month. The payment schedule for the year 2025 is shown below:
– January – 29 January 2025
– February – 26 February 2025
– March – 30 March 2025
– April – 28 April 2025
– May – 29 May 2025
– June – 27 June 2025
– July – 30 July 2025
– August – 28 August 2025
– September – 29 September 2025
– October – 30 October 2025
– November – 27 November 2025
– December – 22 December 2025
Other Benefits of OAS:
Besides OAS, there are other benefits that assist low-income elderly people:
1. Guaranteed Income Supplement (GIS):
– GIS is for low-income elderly. For 2025:
– Single person: $1,086.88 a month.
– Couples (both receiving OAS): $654.48 each.
2. Allowance:
– For low-income persons aged 60 to 64 whose spouses receive OAS and GIS. The maximum amount could be $1,381.90.
3. Survivor Allowance:
Available to low-income widows or widowers between the ages of 60 to 64, and the highest payout is $1,647.34.
OAS benefits and taxation
The income from OAS is taxable. The recipient will have to add it to the list of items to declare at the time of annual taxation. Taxable income and, in particular, increased incomes may suffer an OAS claw back.
Applicaion and Eligibility OAS Benefits
Old Age Security – Apply
1. Automatic enrolment
For most seniors, you are enrolled automatically. If you are accepted, you should receive a welcome letter.
2. Manual application:
– If you don’t get auto-enrolled, you must sign up 6 months before turning 65. You can either do it on the internet or by mail.
3. Delayed Payments:
– Starting to receive OAS later adds more money into your monthly allowance. Every month you delay, there is a 0.6% increment. At 70 years of age, the increment could grow to 36%.
FAQs
Q.*What’s the highest OAS in 2025?
A.- Maximum OAS for Seniors 65 to 74 is $727.67 while for Seniors 75 and older is $800.44, and GIS and other benefits made it rise to $2,350.
Q.Am I eligible for OAS when living abroad?
A.Yes, you are eligible to receive OAS while out of the country if you have at least 20 years in Canada since age 18.
Q.Does OAS pay tax?
A.Yes, OAS is taxable income and must be reported on an individual’s income tax return.
Q. How do I update my direct banking information?
A.- You can also update your banking information by checking your My Service Canada account or by contacting Service Canada.
Q.5. My payment has not been paid: what do I do?
A.- If the time elapsed is greater than five working days over your payment’s due date, immediately contact Service Canada.
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