If you are planning to retire in Canada, you may be wondering about the Old Age Pension (OAP), also known as the Old Age Security (OAS) pension. The OAP is a monthly benefit that replaces part of your income when you retire. It is funded by general tax revenues and does not require contributions from workers. The OAP is based on your residency and legal status in Canada, and you may be eligible for it even if you have never worked or lived in Canada before.
How to Apply for the OAP?
You can apply for the OAP online, by mail, or in person at a Service Canada office. You should apply for the OAP at least six months before you want to start receiving it. You will need to provide some personal information and documents, such as your Social Insurance Number, your birth certificate, your proof of citizenship or residency, and your banking information.
You can also check if you are automatically enrolled in the OAP. If you are, you will receive a notification letter from Service Canada in the month after you turn 64. You do not need to apply for the OAP if you are automatically enrolled.
How Much Will You Get from the OAP?
The amount of OAP that you will receive depends on several factors, such as your age, your income, your marital status, and your residency. The maximum OAP benefit for 2023 is $626.49 per month. However, most people receive less than the maximum amount. Your OAP benefit may be reduced or clawed back if your net income exceeds $79,845 in 2023. You will have to repay part or all of your OAP benefit at a rate of 15%.
You can use the OAS calculator to estimate how much OAP you will get based on your personal situation.
When Will You Get Your OAP Pension Payment?
Your OAP payment is made by midnight on the second last business day of every month, except in December. In December, the payment is made by midnight on the second last business day before December 25. The following are the 2023 and 2024 OAP payment dates:
| Month | 2023 | 2024 |
|---|---|---|
| January | 27 | 29 |
| February | 24 | 27 |
| March | 29 | 26 |
| April | 26 | 26 |
| May | 29 | 29 |
| June | 28 | 26 |
| July | 27 | 29 |
| August | 29 | 28 |
| September | 27 | 25 |
| October | 27 | 29 |
| November | 28 | 27 |
| December | 20 | 20 |
You can also sign up for direct deposit to receive your OAP payment directly into your bank account.
How to Increase Your OAP Benefit
There are several ways to increase your OAP benefit, such as delaying your application, working longer, splitting your pension with your spouse, and applying for other benefits. For example, you can increase your OAP benefit by 0.6% for every month that you delay receiving it after age 65, up to a maximum of 36% at age 70. You can also apply for the Guaranteed Income Supplement (GIS), the Allowance, or the Allowance for the Survivor, which are additional benefits for low-income seniors, spouses, and survivors.
You can use the OAS benefits finder to see what other benefits you may be eligible for.
What are the Other Benefits that You Can Get from the OAP?
Besides the basic OAP benefit, you may also be eligible for other benefits, such as:
- The Guaranteed Income Supplement (GIS): a monthly, non-taxable benefit that supplements your OAP benefit if your income is below a certain threshold.
- The Allowance: a monthly, taxable benefit that provides income support to the spouses or common-law partners of GIS recipients who are aged 60 to 64.
- The Allowance for the Survivor: a monthly, taxable benefit that provides income support to low-income widowed spouses or common-law partners who are aged 60 to 64.
- The Pension Sharing: a voluntary arrangement that allows you to share your OAP benefit with your spouse or common-law partner, which may reduce your taxes or increase your benefits.
- The International Benefits: a benefit that you may receive if you have lived or worked in another country that has a social security agreement with Canada.
FAQs
Q: When are Old Age Security (OAS) pension payments disbursed?
A: OAS payments are typically distributed on the third-to-last banking day of each month.
Q: Can OAS payment dates vary for individuals?
A: Indeed, payment dates may fluctuate based on individual circumstances and chosen payment methods.
Q: How can I ascertain the specific payment schedule for my OAS pension?
A: Refer to the official Service Canada website or contact their helpline for the precise payment schedule.
Q: Is the OAS payment structure monthly or quarterly?
A: While OAS payments are generally made monthly, some individuals may receive them on a quarterly basis.
Q: Do recipients of the Guaranteed Income Supplement (GIS) experience different payment dates?
A: Absolutely, GIS recipients may encounter distinct payment dates compared to those solely receiving OAS.
Q: Is there potential for OAS payment dates to change?
A: Payment dates are subject to change, so it’s advisable to stay abreast of updates through official channels.
Q: Is there a specific age to commence OAS payments?
A: The standard initiation age is 65, but beneficiaries have the flexibility to start as early as 60 or delay until 70.
Q: Are there disparate payment dates for individuals residing outside of Canada?
A: Indeed, those living abroad may experience different payment schedules.
Q: What is the process for updating banking information for OAS payments?
A: Contact Service Canada directly or utilize their online services to update your banking details.
Q: Can OAS payment dates be influenced by holidays or weekends?
A: Yes, adjustments may be made to account for holidays or weekends in the payment schedule.
Conclusion
The Old Age Pension (OAP) is a monthly benefit that replaces part of your income when you retire in Canada. It is based on your residency and legal status in Canada, and you do not need to have worked or contributed to receive it. You can apply for the OAP online, by mail, or in person at a Service Canada office. You should apply for the OAP at least six months before you want to start receiving it. The amount of OAP that you will receive depends on several factors, such as your age, your income, your marital status, and your residency.