In 2024, retirees in Canada who meet the eligibility criteria will enjoy an increase in their Old Age Security payments. The Canadian government is set to make a once-off payment of $3,100 to seniors in the country as a package to mitigate the financial effects of the unprecedented rise in costs of living and ensure that they meet the quality-of-life expectations in the twilight years of their lives.
This payment will be part of the ongoing efforts to help improve the economic well-being of the senior populations in Canada. Let’s break down what the $3,100 OAS pension extra payment is, who it applies to, and when can retirees receive it.
What does it mean by $3100 OAS pension extra payment?
It is, in essence, a one-time lump sum to be distributed to seniors across Canada as part of the government’s broader strategy of providing relief from the financial burdens borne by seniors. Given the rising inflation alongside other economic factors affecting living expenses, this would guide elderly benefit recipients who are dependent mostly on fixed income and their OAS pension to receive it as much-needed assistance.
It expects to go on top of the current OAS payments and “add some relief for seniors in financing increasing costs for groceries, utilities, and healthcare.” It is the extension of a longer-term commitment that the government has made to improving financial security to Canadians as they age.
Criteria of Eligibility
To get an extra payment of $3,100 OAS Pension from the program, seniors have to meet specific eligibility criteria set by the Canada Revenue Agency (CRA). Eligibility requirements are as given below:
- Age Requirement: The applicant should be either 65 years or older. To be eligible for an OAS pension, a senior has to be retired, and aged not less than 65.
- Residency Requirement: The old-age pensioner should be living in Canada. Non-residents are not eligible for this payment.
- OAS Entitlement: The old person must already be receiving Old Age Security pension. If a senior has an entitlement but has not yet started receiving their OAS, he or she will have to initiate the process first to receive the regular pension.
- Income Limits: Eligibility based on income. Very wealthy seniors may not get the benefit because it is intended for those in economic difficulty in retirement.
- Taxable income: The CRA shall have a perusal of the formerly filed tax returns of the seniors to check whether they meet the qualifications for extra payment.
It should be noted here that if seniors do not receive a notice of eligibility, they still can apply through the CRA.
Payout Dates
All those who qualify will receive the one-off payment of $3,100 in 2024, and eligible seniors can expect timely payments. Funds will then be transferred either directly into the account alongside the senior’s OAS payments or via cheque if that is how the pension is typically given.
First Payments: The first payments will be disbursed sometime in early 2024. The seniors will be getting that extra amount credited into their existing OAS benefits, but the $3,100 will be shown as a separate line item.
Timing: The payment would be given in installments during the course of the year. If a senior does not receive it within the regular payment, he/she has to contact the CRA to confirm eligibility.
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