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Are You Eligible for Old Age Security Pension?

Old Age Security - OAS - Cascadesfs

What is OAS – Old Age Security?

OAS or Old Age Security is known as Canadian government’s largest pension program that is funded out of the general revenues, meaning a direct contribution by you is not required.

Most of Canadian seniors that are at the age of 65 or older are eligible to receive the  taxable OAS monthly payment. The payment starts automatically, you are provided with an opportunity to delay the benefit in the months preceding its start.

As of January 2017, OAS recipients must have their personal income less than $121,070.4 while meeting other required criteria to be eligible for OAS benefit.

OAS recipients with a 2017 income exceed the amount of $74,788, at tax time, have to pay back a portion of their OAS at a rate of 15% of net income. This is often referred to as OAS clawback.

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OAS Supplements

There are three different supplements of OAS that you might be eligible to receive:

  • Guaranteed Income Supplement (GIS)
    OAS pension recipients who live in Canada and have low income may receive a monthly non-taxable benefit from GIS.
  • Allowance
    Allowance benefit might be provided for you if your spouse or common-law partner is receiving GIS and you are in the age range of 60 to 64 while having low
  • Allowance for the Survivor
    This benefit is available for those who in between the age of 60 to 64, live in Canada with a low income, and have lost their common-law partner or spouse

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Eligibility

Eligibility for this pension depends on your residence status and where you are located at the time that you are 65 years old..

For recipients that live in Canada

You have to meet all of following requirements:

  • At the time that your OAS pension application is approved, you have to be a Canadian citizen or a legal residence
  • Be 65 year of age or older
  • At least 10 years of residency in Canada since the age of 18

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For recipients that are living outside of Canada

You have to provide all of these following requirements:

  • You have been a Canadian citizen or a legal resident of Canada on the day before you left Canada
  • Be 65 years of age or older
  • At least 20 years of residency in Canada since the age of 18

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For recipients that are working outside of Canada for Canadian employers

The following requirements must be presented to be qualified for OAS pension:

  • Employer’s verification of employment
  • Physical returning to Canada evidence

The time working abroad for Canadians who work for Canadian employers might be counted towards your years of residence in Canada. To be eligible for the OAS pension, you have to be 65 years of age while being employed or must have returned to Canada within six months of ending your employment.

Time spent working abroad could be counted towards your years of residence in Canada for Canadians, their spouses, their common-law partners, and their dependents who work for international organizations under certain conditions.

However, your employment history does not affect your ability to be qualified for OAS pension. You can receive OAS pension regardless of whether you have worked or not.

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Others

If the above scenarios do not apply to your situation, you might still be able to receive an OAS pension, a pension from another country, or from both countries if:

  • A social security agreement has been established between the country that you have lived in and Canada
  • You have contributed to the established social security system between Canada and one of the partner countries

 

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Sources:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html
https://srv111.services.gc.ca/oas/faq
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security.html

3 Comments

  1. […] OAS or Old Age Security is a taxable monthly payment from Canadian Government to Canadian seniors that are at the age of 65 or older. Seniors are eligible to receive OAS taxable monthly payment if met the legal status and residence requirements. […]

  2. […] to the PRB. However, PRB might impact your ability to be eligible or to be benefited from the Old Age Security pension, the Guaranteed Income Supplement, or other provincial or territorial […]

  3. […] TFSA. Therefore, the eligibility of being qualified for government benefits and credits like Old Age Security (OAS) or the Goods and Services Tax (GST) credit will not be […]

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