The Canadian government has recently announced an increase in the maximum Old Age Security (OAS) Allowance benefit, raising it to $1,364.17 monthly. This significant adjustment aims to provide additional financial support to individuals aged 60 to 64 whose spouses or common-law partners receive the OAS pension.
I discuss the recent inflation adjustments, payment dates, eligibility, and more in this article.
What is the OAS Allowance?
The OAS Allowance is money the government gives to people aged 60 to 64 whose spouse or partner gets Old Age Security. It’s meant to help senior couples who might be struggling financially before both of them can get OAS. The Allowance stops when the younger partner turns 65 and can get their own OAS.
New Maximum Amount
As of July 2024, the most you can get from the Allowance is $1,364.17 per month. This is a slight jump from the last quarter and is in line with increases in the Consumer Price Index. Remember, not everyone gets the maximum amount, as it depends on your income.
Who Can Get the Allowance?
To get the Allowance, you need to:
- Be 60 to 64 years old
- Have a spouse or partner who gets OAS and maybe GIS
- Live in Canada
- Be a Canadian citizen or legal resident
- Have a low combined income with your spouse
How Income Affects the Amount
The amount of Allowance you get depends on how much money you and your spouse make together. As your income goes up, the Allowance goes down. If you make too much, you might not get any Allowance at all. The government will look at your income from last year to make a decision.
OAS Payment Dates
The Allowance is paid monthly, usually at the end of each month. In 2024, the payment dates 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, and December 20, 2024.
How to Apply
You need to apply for the Allowance – it doesn’t start automatically. You can apply online through My Service Canada Account or fill out a paper form. You must provide information about yourself, your spouse, and your income. Apply as soon as you’re eligible to avoid missing any payments.
Quarterly Increases
The government usually revises the Allowance amount every quarter in January, April, July, and October. This is to keep up with the rising cost of living. The amount goes up based on the Consumer Price Index, which measures how much prices are changing.
Other Benefits You Might Get
If you get the Allowance, you might also qualify for other benefits. These could include Provincial or territorial benefits, Prescription drug coverage, and Home care services.
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 the Guaranteed Income Supplement if your income is low. Make sure to apply for these benefits before you turn 65 so you don’t miss any payments.
Allowance for the Survivor
There’s a special type of Allowance for people whose spouse has died. It’s called the Allowance for the Survivor. The maximum amount for this is slightly higher than the regular Allowance. If your spouse passes away, you might be able to switch to this benefit.
Is the Allowance Taxable?
The Allowance is taxable income. This means you need to report it on your tax return. However, no tax is taken off your monthly payments. You might want to set some money aside for taxes or ask for tax to be deducted from your payments to avoid a surprise at tax time.
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