Canadian seniors expecting their next Old Age Security (OAS) payment will see the benefit deposited in their bank account next week.
Paid in the last week of each month, OAS is one of the main pillars of Canada’s retirement income system, along with the Canada Pension Plan (CPP), workplace pensions, and the Registered Retirement Savings Plan (RRSP).
The OAS pension amount is adjusted quarterly to keep pace with inflation. While there was no change to the amount last April, the government has indicated there will be a 0.70% increase for the July to September payment quarter.
Basic OAS Pension Amount (Age 65 to 74)
The standard OAS pension for August 2024 is set at a maximum of $718.33 per month. This amount applies to seniors who meet the full residency requirements and are eligible for the maximum payment.
It’s important to note that this figure represents the maximum amount for those who have lived in Canada for at least 40 years after turning 18.
Your individual amount will vary based on factors like how long you’ve lived in Canada and your current income. For instance, if you’ve lived in Canada for 20 years after turning 18, you would receive half of the full OAS amount.
OAS Amount for Seniors 75 and Older
Seniors in the 75+ age group receive an additional 10% on top of their regular OAS payment. This means if you’re 75 or older, you could receive up to $790.16 this month.
This bonus was introduced to provide additional support for older seniors who may face higher healthcare costs and other age-related expenses. It’s automatically applied to your OAS payment once you turn 75, so you don’t need to apply separately for this increase.
Guaranteed Income Supplement (GIS)
The GIS is a monthly non-taxable benefit paid to OAS pension recipients who have a low income and are living in Canada. Here’s what you might receive:
- Single person: Up to $1,072.93
- If you have a spouse or common law partner who receives full OAS or the Allowance: $645.84
- Couple (if spouse does not get OAS or Allowance): Up to $1,072.93
GIS amounts are based on your income and that of your spouse or partner, so your actual amount may differ.
To qualify for the GIS, you need to be receiving the OAS pension and have an annual income below certain thresholds. These thresholds vary depending on your marital status and whether your spouse or common-law partner receives OAS or the Allowance.
Your eligibility for the GIS is reassessed annually based on your income tax return for the previous year.
You may also like: Maximum OAS Allowance Benefits Now up to $1,364.17 Monthly
When to Expect Your Payment
OAS payments are typically deposited on the third-last banking day of the month. For August 2024, you can expect to see the money in your bank account on August 28th if you have set up direct deposit payments.
The other payment dates for the remainder of 2024 are:
- September 25, 2024
- October 29, 2024
- November 27, 2024
- December 20, 2024
Direct deposit is the fastest and most secure way to receive your OAS payments. If you haven’t signed up for direct deposit yet, you can do so through your My Service Canada Account or by visiting a Service Canada office near you.
Understanding the OAS Clawback
High-income seniors should be aware of the OAS clawback, officially known as the OAS recovery tax. If your income exceeds $86,912 (based on 2023 figures), you may see some of your OAS benefit reduced. The higher your income, the more significant this clawback becomes.
The clawback is calculated at a rate of 15 cents for every dollar of income above the threshold. For example, if your income is $1,000 over the threshold, your annual OAS would be reduced by $150.
If your income is high enough, it’s possible to have your entire OAS clawed back. For the July 2024 to June 2025 payment period, this would happen if your income exceeds $142,609 (age 65-74) or $148,179 (age 75+).
How to Apply for OAS
While many Canadians are automatically enrolled in OAS, some may need to apply. If you’re approaching 65 and haven’t received a letter from Service Canada about your OAS, you should consider applying. You can apply up to 11 months before you turn 65.
To apply, you’ll need to fill out the Application for the Old Age Security Pension form. This form is available online through the Service Canada website, or you can request a paper copy.
The form asks for personal information, details about your residency in Canada, and information about any time spent living or working in other countries.
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