Apply for Old Age Security (OAS) benefits is really important as you head into retirement. The Old Age Security (OAS) program is an important part of Canada’s support for seniors in their retirement. Created by the government, OAS is there to make sure people who are 65 and older have a basic income. This helps them with their overall well-being and covers important living costs. It shows that Canada is dedicated to making sure older citizens have the money they need to live well and maintain their dignity.
The OAS pension is like a strong base for your finances, giving you a steady income to help with important expenses. It’s not just about getting a basic income; OAS benefits, like the Guaranteed Income Supplement (GIS) and Allowance programs, are there to support seniors with different financial needs. Applying on time means that people who qualify can start getting these benefits quickly, making their retirement more secure and comfortable. It’s a proactive way to make sure life is good during your golden years and shows how much the government cares about the well-being of older citizens.
How Can You Apply For Old Age Security (OAS)
The Old Age Security (OAS) program is a vital component of Canada’s support system for seniors, providing financial assistance to individuals aged 65 and older. Apply for Old Age Security (OAS) is a straightforward process designed to ensure that eligible individuals receive the benefits they deserve. Here some steps of the OAS application process:
Step 1: Check if You Need to Apply:
We might send you a letter telling you that you’ll get the Old Age Security (OAS) pension.
You should apply for the OAS pension if:
- We send you a letter asking you to apply.
- The information in the letter we send is wrong.
If you didn’t get any letter about the OAS pension the month after you turned 64, contact us to find out if you need to apply.
Step 2: Decide When You Want OAS to Start:
You’ll need to choose one of the following:
- Start getting your pension at age 65 (it begins the month after your 65th birthday).
- Start getting your pension at a specific date that you choose.
You’ll need to figure out the best time for you to start getting your pension.
Step 3: Apply Decide how to apply:
Apply Online: To apply online, you must be at least 1 month past your 64th birthday, not currently getting an OAS pension, not already applied for OAS, and living in Canada. If you apply online, you’ll need a My Service Canada Account (MSCA). If you don’t have an MSCA, you can register for one.
Apply Using a Paper Application: If you apply by mail, you need to print and complete the paper form Application for the OAS and the GIS (ISP-3550), include certified true copies of the needed documents, and mail the application or bring it in person to a Service Canada office.
Note: Make sure to gather all the info you need before starting the application online, as you can’t save it and continue later. Your session will expire after 20 minutes of inactivity.
Step 4: Get a Response:
We’ll send you a letter with either:
- A decision on your application.
- A request for more information.
Your decision letter will include the amount you’ll get each month, the date of your first payment, and any owed past payments.
Step 5: Check Your Application Status:
You can check your application status by signing in to MSCA or contacting Service Canada. If you don’t have an MSCA account, you can register for one.
Step 6: If You Disagree With the Decision:
If you disagree with the decision, you can ask for a review. You must request this review in writing within 90 days of getting your decision letter. Service Canada staff, not involved in the initial decision, will review your application, and you’ll get a new decision by mail.
Submit an appeal to the Social Security Tribunal of Canada: If you still disagree with the new decision. The Social Security Tribunal is separate from Service Canada. You can start an appeal through the Social Security Tribunal Website or MSCA.
If you want a representative to help you communicate with the Social Security Tribunal, you’ll need to fill out a form or call a representative. Contact the Social Security Tribunal directly to change or cancel your representative.
During the receipt of OAS
While receiving OAS you need to know about what you do next. So here you firstly know about:
Your First OAS Payment
Your initial Old Age Security (OAS) payment will be issued in either of the following ways:
- The month after you turn 65.
- On a specific date that you have chosen.
Refer to the Benefits payment calendar for precise details about when Old Age Security payments are made.
Receiving OAS Pension Outside of Canada
If you meet one of the following conditions, you can still qualify for Old Age Security pension payments while residing outside of Canada:
- You lived in Canada for at least 20 years after turning 18.
- You lived and worked in a country that has a social security agreement with Canada for a combined total of at least 20 years.
If you do not meet these criteria, your payments will cease if you are outside the country for over 6 months after the month you left. Additionally, you won’t be eligible for the Guaranteed Income Supplement if you stay outside of Canada for more than 6 months.
Tax Considerations
Your Old Age Security pension payments are considered taxable income. Taxes are not automatically deducted each month. You can request federal income tax deductions from your monthly payment by either:
- Signing into your My Service Canada Account.
- Completing the Request for voluntary Federal Income tax Deductions CPP/OAS form (ISP-3520OAS) and mailing it to us or dropping it off at a Service Canada office.
If you don’t request monthly tax deductions, you may need to pay your income tax each quarter. For more information, contact the Canada Revenue Agency (CRA) Tax Services Office.
Taxes for Those Living Outside Canada
Early each year, you will receive a T4 or NR4 tax slip, depending on your residency status. T4 slips are for residents of Canada, while NR4 slips are for those living outside the country. To obtain copies of your tax slips:
- Use your My Service Canada Account.
- Access your T4 tax information online through the Canada Revenue Agency’s services.
Notify Changes in Your Situation
Contact us if any of the following changes occur:
- Change of address or phone number.
- Marriage.
- Entering into a common-law union.
- Divorce or separation.
- Death of your spouse, common-law partner, or beneficiary.
If you have an address outside Canada, you can only view your information online. To update your account information, contact us directly.
Canceling or Delaying OAS Payments:
If you’ve received Old Age Security for less than 6 months, you can request to cancel or delay your first payment within this period. Write to us within 6 months of receiving your initial payment.
Upon approval, you have 6 months to repay any received amounts and related benefits. You can reapply later and receive an increased Old Age Security pension.
Leaving Canada for More Than 6 Months
If you don’t qualify for receiving Old Age Security outside Canada, your payments will cease if you’re out of the country for more than 6 months after the month you left. The Guaranteed Income Supplement cannot be collected if you stay outside of Canada for more than 6 months.
Example: If you plan to be absent from Canada for more than 6 months, contact us to prevent overpayment. Service Canada cross-references information with the Canada Border Services Agency, determining eligibility for OAS payments if you leave Canada for more than 6 months. Any overpaid amounts must be repaid.
Do you qualify for Old Age Security?
Your work history doesn’t affect your eligibility. You can get the Old Age Security (OAS) pension whether you’ve worked before, are still working, or have never worked.
If you live in Canada, you need to:
- Be 65 years old or older.
- Be a Canadian citizen or a legal resident when we approve your OAS pension application.
- Have lived in Canada for at least 10 years since you turned 18.
If you’re outside Canada, you need to:
- Be 65 years old or older.
- Have been a Canadian citizen or legal resident the day before you left Canada.
- Have lived in Canada for at least 20 years since you turned 18.
Canadians working abroad for Canadian employers, like the Canadian Armed Forces, may count their time working abroad as Canadian residence under certain conditions. To qualify, you must have either:
- Returned to Canada within 6 months of ending employment.
- Turned 65 while still employed and maintained residence in Canada during your time abroad.
You need to provide proof of employment and proof of physically returning to Canada unless you turned 65 while still employed outside Canada.
Spouses, common-law partners, dependents, and Canadians working abroad for international organizations may also count time spent abroad as residence in Canada under certain conditions.
If these don’t apply to you, you may still qualify for the OAS pension, a pension from another country, or both if you have:
- Lived in a country with which Canada has a social security agreement. or
- Contributed to the social security system of a country with which Canada has a social security agreement.
For more information, check details about living outside Canada.
You may also be eligible for extra benefits and payments based on your income and age, in addition to your Old Age Security pension.
What amount you might be eligible for?
The amount you receive from Old Age Security (OAS) pension depends on your age and income. Here’s a breakdown:
- Maximum Payments and Income Thresholds (January to March 2024):
- Age 65 to 74: Maximum monthly payment $713.34, Annual net world income must be less than $142,609.
- Age 75 and over: Maximum monthly payment $784.67, Annual net world income must be less than $148,179.
Note: OAS pension is reviewed regularly to account for the cost of living, and your monthly payment won’t decrease even if the cost of living goes down.
- Increased OAS Pension at Age 75:
- If you’re 75 or older, an automatic 10% increase in your OAS pension starts in July 2022.
- Income Tax Considerations:
- OAS pension payments are taxable income, and federal income tax isn’t automatically deducted. You can request monthly tax deductions through your My Service Canada Account or by completing a form.
- Receiving Payments Outside of Canada:
- You may qualify to receive OAS pension payments while living abroad based on your years in Canada or through social security agreements. However, if you’re out of the country for more than 6 months, your payments may stop.
- Retroactive Payments and Other Benefits:
- Retroactive payments are possible for up to 11 months from the date of your application.
- Depending on your income, you might be eligible for additional benefits like the Guaranteed Income Supplement, Allowance, or Allowance for the Survivor.
- Considering When to Start Collecting OAS:
- You can start receiving OAS as early as the month after you turn 65, but delaying can result in higher monthly payments.
- You can delay payments for up to 60 months (5 years) after turning 65, with no advantage in delaying beyond age 70.
- Factors to Consider:
- Your health, financial situation, retirement plans, and whether you plan to keep working are crucial factors.
- Delaying your first payment may allow you to keep more of your pension, but other benefits may also be delayed.
- Applying for Delay or Cancellation:
- If you wish to delay your first payment, you can do so through your My Service Canada Account or by completing and returning the enrollment letter.
- Calculating OAS amounts for delayed years involves a guide, and examples are provided for better understanding.
- Partial OAS Pension:
- Not everyone receives the full OAS pension. To get the full pension, you need 40 years of residence in Canada after age 18. A partial pension is calculated based on the number of years in Canada divided by 40.
- You can delay your first payment for up to 5 years to receive a higher amount.
Understanding these details can help you make informed decisions about your OAS pension based on your unique circumstances.
FAQ
Who is eligible to apply for Old Age Security (OAS)?
Anyone aged 65 or older who meets the residence and citizenship requirements can apply for OAS. Work history is not a factor in eligibility.
What are the residence requirements for OAS?
If you are living in Canada, you must have resided in the country for at least 10 years since the age of 18. If you are living outside Canada, the requirement is at least 20 years of residence in Canada since the age of 18.
Is OAS income taxable?
Yes, OAS payments are taxable income. Tax is not automatically deducted, but you can request voluntary federal income tax deductions through MSCA or by completing a specific form.
Can OAS be canceled or delayed after receiving the first payment?
If you have received OAS for less than 6 months, you can request to cancel or delay your first payment within the initial 6 months. Repayment may be required if payments were received, and re-application is possible for an increased pension.