Everything You should Know about Canada Old Age Pension

The Old Age Security (OAS) pension is a government-sponsored pension program in Canada. It is designed to provide a basic level of income to eligible seniors who are 65 years of age or older.

The OAS pension is funded by the Government of Canada. To be eligible for the OAS pension, you must meet the residency requirements, which state that you must have lived in Canada for at least 10 years after the age of 18. The amount of the OAS pension is determined by the government and is subject to change.

Canada Old Age Pension program

The Canada old age pension program is subsidized by general government income in Canada. This implies that no one directly contributed to it. Even if you’ve never worked in Canada, you are eligible for its benefits.

The OAS program comprises the following:

1) The OAS pension: A monthly payment accessible to seniors 65 and older who fulfill the legal status and residency criteria of Canada.

2) The Guaranteed Income Supplement: A regular payment that is tax-free for Canadian residents receiving the OAS pension and making a modest income.

3) The Allowance: A payment made each month to Canadian residents 60 to 64 who have lost a partner or common-law spouse and have a low income.

4) The Allowance for the Survivor: A payment given each month to poor people between the years of 60 – 64 whose partner or prevalent partner receives the Guaranteed Income Supplement.

Canada Old Age Security Pension

old age pension
Photo by Vidar Nordli-Mathisen on Unsplash

To be eligible for an OAS (Canada old age pension program) pension,

  • You must be at least 65 years old,
  • Once your retirement application has been approved, you must be a Canadian citizen or a naturalized citizen (or landed immigrant), and you must have lived in the country for at least 10 years straight after becoming 18 years old.
  • If you are appealing from abroad, you must be a Canadian citizen or permanent resident before you left the country and have lived there for at least 20 years since becoming 18 years old.

When can you receive the pension payments?

Your Canada old age pension program can begin as soon as the month after your 65th birthday, or even the month after you complete the residency and legal status requirements.

You have the choice to postpone receiving your OAS pension until you are 70. By doing so, you would boost the value of the award.

Your pension amount will increase by 0.6 percent for each month you delay starting your OAS pension (7.2 percent per year or 36 percent over 5 years).

A full pension of $600.85 per month at age 65, for example, would be $817.15 per month at the age of 70.

OAS Full Pension: How to get it?

Generally speaking, you are eligible for the complete Canadian old age pension program if you have lived in the country for a minimum of 40 years after turning 18 years old.

You could in some cases be qualified for a full OAS even though you haven’t resided in Canada for over forty years. If you are 25 years of age or older, live in Canada, or have a legitimate Canadian immigration visa before July 1, 1977,  click here.

How to Qualify for an OAS Partial Pension?

If pensioners are not eligible for a full Canada old age pension program, they could be eligible for a partial pension. You may be eligible for a partial OAS if you have applied while in Canada and have resided there for at least 5 – 10 years after becoming 18 years old.

If you have lived in Canada for at minimum twenty years after turning 18 and submit an application while living abroad, you may be qualified for a portion of the OAS pension.

After turning 18, recipients of a half-monthly pension get 1/40th of the state pension for every year they have lived in Canada. For instance, you would get 27/40ths of the monthly pension if you had lived in Canada after turning 18 for 27 years.

A partial pension cannot be enhanced due to additional spending years in Canada after it has been granted.

Guaranteed income supplement GIS

The Guaranteed Income Supplement (GIS) is a monthly payment made to low-income elderly seniors. It is not taxed. To be qualified for the Guaranteed Income Supplement (GIS), you must: qualify for OAS (full or partial amount); and reside in Canada.

Canadiens can begin earning GIS benefits as soon as they start getting their Canada old age pension program. The amount of GIS you receive is determined by your yearly net income or, if married, your joint income and your partner/common-law relationship partner.

The Income Support Supplement amount may vary from year to year based on your earnings. The Canadian old age pension program is taxable, however, the Guaranteed Income Supplement (GIS) is.

Automatic Enrolment

  • If you live in Canada and have been a member of the Canada Plan and/or the Quebec Scheme for at least forty years, you may be eligible for old age security OAS.
  • Before turning 65, you will get written notice if you qualify for automatic enrolling. You will also be told what information was utilized to assess your eligibility.

Do you qualify

1. Canada’s old age pension program 

According to the Canada Pension Plan, you can begin receiving payments at any time between the ages of 65 and 70.

pension money
Photo by Kenny Eliason on Unsplash

Your amount will increase by 0.6 percent a month for each month you delay starting your OAS (7.2 percent per year). You can also postpone payments beyond the age of 70, but your pension will not rise any further.

2. Legal Status

You should have legal standing in Ontario to be eligible for the old age security OAS. This indicates that you were a Temporary Resident’s Permit holder, a Canadian citizen, or a perpetual native.

If you were born in or have resided in Ontario your entire life, you do not need to produce proof of legal status. If more proof is necessary, they will contact you.

If you were born outside of Canada, depending on your situation, you could request a scanned copy of any necessary paperwork. A passport, citizenship certificate, or naturalization published rules to a Canadian citizen in 1970 or later.

For legal residents, often known as landed immigrants, you must have a Canadian immigration certificate or a stamp in your passport from the day before your request was approved.

Where you can get help

If you have general questions about Old Age Security or specific questions about your application, contact officials.

This was all about Canada’s Old Age Security Pension, 2022 edition. Visit the Canada Benefits website to get an overview of the general information about the allowance for the survivor and other benefits.

Frequently Asked Questions (FAQs)

  1. How much is the old age pension in Canada?

The Old Age Security (OAS) pension in Canada is a monthly benefit paid to eligible seniors who are 65 years of age or older. As of 2023, the maximum OAS pension amount is $614.23 per month. The actual amount you receive may be less, depending on your income and the number of years you have lived in Canada.

2. Who qualifies for Canada Old Age pension?

To qualify for the Old Age Security (OAS) pension in Canada, you must meet the following criteria:

  1. Age: You must be 65 years of age or older.

  2. Residency: You must have lived in Canada for at least 10 years after the age of 18.

  3. Citizenship: You must be a Canadian citizen or legal resident of Canada at the time the pension is claimed.

3. What is the difference between Canada Pension and Old Age pension?

The Canada Pension Plan (CPP) and the Old Age Security (OAS) pension are two different programs in Canada designed to provide retirement income to eligible individuals.

The Canada Pension Plan (CPP) is a contributory plan, meaning that both employees and employers contribute to the plan through payroll deductions. The amount of CPP benefits you receive depends on how much and for how long you have contributed to the plan.

The Old Age Security (OAS) pension is a non-contributory plan, meaning that benefits are paid from general tax revenues. To be eligible for the OAS pension, you must meet certain age, residency, and citizenship requirements. The amount of OAS benefits you receive is based on the length of time you have lived in Canada and is not dependent on your contributions to the plan.

Both the CPP and OAS pensions are designed to provide retirement income, but they have different eligibility criteria and funding sources.


Also, Read How to Become a Permanent Resident of Canada?


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