As Canadians approach retirement, understanding the various benefits available becomes increasingly essential. One program that often flies under the radar is the Old Age Security (OAS) Allowance benefit. This benefit, designed for individuals aged 60 to 64, is a financial bridge for those nearing retirement age who may face economic challenges.
This article aims to shed light on the key aspects of the Allowance, including eligibility criteria, payment amounts, and how it interacts with other government programs.
What is the OAS Allowance?
The OAS Allowance is a monthly payment for people aged 60 to 64 who might need extra money. It’s part of Canada’s plan to help older people with low incomes.
The Allowance is meant to fill the gap between stopping work and receiving other retirement benefits at age 65.
Who Can Get the Allowance?
To get the Allowance, you need to meet a few rules:
- You must be 60 to 64 years old
- Your spouse or partner must be getting OAS and GIS
- You must have lived in Canada for at least 10 years since turning 18
- Your combined income with your spouse must be below a certain amount ($39,984 as of this writing)
- You must be a legal resident of Canada
How Much Can You Get?
The amount you can receive changes every year. As of the second quarter of 2024, the most you can get is $1,354.69, but most people receive less than this.
How much you get depends on how much money you and your spouse make together. The government looks at your income from the year before to decide how much Allowance benefit you qualify for.
When and How Do You Get Paid?
The Allowance benefit is paid every month, usually near the end of the month. You can have it sent straight to your bank account, which is the fastest way to get it. If you don’t use direct deposit, you’ll get a check in the mail.
OAS payment dates for 2024 are:
- January 29, 2024
- February 27, 2024
- March 26, 2024
- April 26, 2024
- May 29, 2024
- June 26, 2024
- July 29, 2024
- August 28, 2024
- September 25, 2024
- October 29, 2024
- November 27, 2024
- December 20, 2024
How to Apply for the Allowance
You need to apply to get the Allowance—it doesn’t start automatically. You can apply online through the Service Canada website or fill out a paper form and mail it in.
You’ll need to provide information about yourself, your spouse, and your income. Applying a few months before you turn 60 is a good idea to ensure you don’t miss any payments.
What Happens When You Turn 65?
The Allowance stops when you turn 65. But don’t worry – at 65, you can start getting your own OAS pension. You might also be able to get GIS if your income is low. You don’t need to apply for OAS if you’ve been getting the Allowance – it should start automatically.
Allowance vs. Allowance for the Survivor
The Allowance and the Allowance for the Survivor are similar but not the same.
The regular Allowance is for people whose spouse is alive and getting OAS. The Allowance for the Survivor is for people whose spouse has died. Both have similar age and income rules, but the Allowance for the Survivor can pay a bit more.
Related:
25 Activities You Need To Stop Doing After 60
