Old Age Security (OAS) pension, a comforting safety net for our seniors in Canada! Picture this: a cozy monthly income the government provides to eligible folks who have reached the golden age of 65. But here’s a trick – if you’re eager to retire a bit earlier, you can start receiving these benefits as early as age 60, though it comes with a slight reduction in the amount. Are wondering where you will get your pension? Let me tell you: it comes from the tax you and several other Canadians pay every year. To be eligible for this pension, you must have lived in Canada for at least ten years after you turned 18. 

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. I will tell you about some other payments also. Check this-

• The OAS pension is a monthly payment accessible to seniors 65 and older who fulfil Canada’s legal status and residency criteria.
• The Guaranteed Income Supplement is a regular, tax-free payment for Canadian residents receiving a pension and making a modest income.
• The Allowance is a monthly payment to Canadian residents 60 to 64 who have lost a partner or common-law spouse and have a low income.
• The Allowance for the Survivor is a monthly payment given to poor people between the ages of 60 and 64 whose partner or predominant partner receives the Guaranteed Income Supplement.

To get a regular pension after retirement, you must pass the following criteria.

• You must be at least 60 years old.
• Once your retirement application has been approved, you must be a Canadian citizen or a naturalized citizen (or landed immigrant) and have lived in the country for at least ten years straight after turning 18.
• If you are appealing from abroad, you must have been a Canadian citizen or permanent resident before you left the country and have lived there for at least 20 years since you were 18.

How to Apply for Pension Payments in Canada?

If you have any doubts or you don’t know anything about the process, then don’t worry. Here I have summed up the steps that you need to follow to secure your financial health post-retirement.

• Check if you meet the eligibility criteria for the specific pension program you want to apply for. For example, CPP has specific age and contribution requirements.
• Collect necessary documents such as your birth certificate, Social Insurance Number (SIN), banking information for direct deposit, and any other relevant documents based on the specific pension program requirements.
• Decide how you want to apply. Depending on the program, you can apply online, by mail, or in person. You can apply for CPP and OAS through the Government of Canada website. Create an account on the My Service Canada Account (MSCA) portal and follow the instructions to complete your application.
• If you prefer to apply by mail or in person, download the application form from the government website or obtain it from a Service Canada office. Fill out the form completely and accurately.
• Submit your completed application along with all required documents. If you are applying by mail, ensure you have included all necessary information and signed the form where needed.
• After submitting your application, wait for it to be processed. Processing times can vary, so check the official website or contact the relevant authority for estimated processing times.
• Once your application is approved, you will receive confirmation of your pension eligibility and payment details. Payments are usually made monthly through direct deposit to your bank account.
• Keep records of your application and any correspondence related to your pension payments for future reference.
• Keep your information up to date with the relevant authorities. Notify them of changes such as address, marital status, or banking information to ensure uninterrupted pension payments.

When Can You Get Your Pension Payments?

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

I recommend that you push your pension receiving period to post 70, as you would boost the value of the award. I am telling you this for a reason. Your pension amount will increase by 0.6 percent each month you delay starting your OAS pension (7.2 percent per year or 36 percent over five years). For example, a full pension of $600.85 per month at age 65 would be $817.15 per month at the age of 70.

Guaranteed Income Supplement (GIS)

After working hard your whole life, you would want a comforting income to support your financial requirements. That income is the Guaranteed Income Supplement (GIS) the Canadian government provides. It’s like a warm source of money that you get monthly and is non-taxable. It’s not just handed out randomly; some criteria make it accessible to those who qualify.

The amount of income that you might receive from GIF is not fixed; it keeps changing. But as we all know, something is better than nothing, and you must try to enrol in this to have an extra layer of financial security in your old age. And I promise you that you won’t be disappointed.

GIS is more than just financial assistance; it’s a symbol of care and recognition for Canadian seniors, ensuring that their later years are spent with dignity and comfort.

Automatic Enrolment

• If you live in Canada and have been a Canada Plan and the Quebec Scheme member 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.

I Hope You Got the Point Now!

Imagine the sense of relief and comfort that you can live with knowing that in your later years. Once you are done working hard, there is a safety net that is woven by the government and collective efforts of Canadian society. This ensures a fulfilling retirement and takes care of your financial requirements. Canada’s old age pension program is very important and has an impact on individuals and families across the entire country. I think that it’s more than just a government program, it is also a way to take care of the Nation’s most valued citizens.

Last Updated on April 14, 2024 by Pragya Chakrapani