Losing a husband or wife is hard. It can also worsen money problems, especially if you’re close to retirement age. This is where the OAS Allowance for the Survivor benefit comes into play.
The Allowance for the Survivor is designed to help seniors between 60 and 64 years old who have lost their partner. This money can be a big help when waiting to get other retirement benefits at 65.
In this article, I discuss how this benefit works, how much money you can get in 2024 and when you can expect it.
What is the Allowance for the Survivor?
The Allowance for the Survivor is a monthly benefit paid to eligible seniors aged 60 to 64 whose spouse or common-law partner has died.
This benefit is part of the Old Age Security (OAS) program and helps those who might struggle financially until they can get regular OAS payments at 65.
Who Qualifies?
To get the Allowance for the Survivor, you need to:
- Be between 60 and 64 years old
- Live in Canada
- Be a Canadian citizen or legal resident
- Have a low income (less than $29,112 as of the second quarter of 2024)
- Have lived in Canada for at least 10 years since you turned 18
- Have lost your spouse or common-law partner
How Much is Allowance for the Survivor?
The amount is updated every quarter and may increase in line with the Consumer Price Index (inflation). In 2024, the most you can get monthly is $1,614.89, but most recipients get less than this.
How much you get depends on your income. The government will consider your income from last year and use the income reported on your tax return.
When and How Do You Get Paid?
Payment occurs near the end of the month. You can have it deposited into your bank account, which is the fastest way. If you don’t use direct deposit, you’ll get a check in the mail.
All OAS benefits are paid on these dates in 2024:
- 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
You can apply online on the Service Canada website. You can also fill out a paper form and mail it. You’ll need to provide information about yourself and your income.
It’s a good idea to apply as soon as you can after your spouse dies.
Also read: The Canada Pension Plan Explained
What Happens When You Turn 65?
The Allowance for the Survivor stops when you turn 65. But don’t worry – at 65, you can start getting regular OAS payments.
You might also be able to get the Guaranteed Income Supplement if your income is low. You’ll need to apply for these benefits before you turn 65.
How It Affects Your Taxes
Allowance for the Survivor benefits is considered taxable income. This means when you file your taxes, you need to report this money as part of your income. The government will send you a tax slip (T4A(OAS)) that shows how much you got during the year.
You can choose to have tax taken off your payments each month. This is called tax withholding. It can help you avoid owing a large amount during tax time.
Getting the Allowance for the Survivor might affect other tax credits or benefits you can get. For example, it might change how much GST/HST credit you receive.
Combining with CPP Survivor’s Pension
You might be able to get the CPP Survivor’s Pension at the same time as the Allowance for the Survivor. These are two different benefits. The CPP Survivor’s Pension is based on how much your spouse paid into CPP.