The Canadian government has instituted a good number of fiscal aid programs for seniors, which aim at helping them maintain stable income during retirement years. Among the major benefits offered is the Old Age Security (OAS) payment, which refers to a monthly income payable to Canadian citizens and legal residents satisfying some eligibility requirements. The OAS payment has attained the maximum amount of $978 per month for the year 2024, and is one of the major financial resources for seniors from across the country.
What is OAS?
Old Age Security (OAS) is a program established by the government to support income and make monthly payments to people aged above 65 years. It differs from the Canada Pension Plan (CPP) in that it is not based on payments made by a person during his/her working life, and applies to every Canadian who meets certain residency and age requirements. However, OAS payments vary with people depending on their income and duration of stay in Canada.
OAS Payment for Senior 2024
Eligible seniors will be qualified for payments up to $978 for the entire 2024 under the OAS program. Inasmuch as the payment targets those seniors who do not have rolled-up savings or pensions that give adequate support for retirement, it supplements lower-income sources and makes it possible for them to live at least almost completely from rent, food, utilities, and so on.
Payment for the OAS scales with inflation on a quarterly basis to ensure that it adjusts in value with an increase in cost of living, which is particularly valuable with high inflation. This is so that the currency purchasing power of the elderly population increases.
Qualification criteria for OAS
All must abide by the following conditions to receive OAS:
- Age- by law, the applicants should be at least 65 years old.
- Residency- must have lived at least 10 years in Canada after the age of 18 years before qualifying for OAS benefits. More specifically, he/she must have lived in Canada for 40 years after turning 18 to earn the total entitlement. Thus, for non-resident seniors less than 40 years of residency in Canada, their amount would be prorated based on residency years.
- Citizenship- the applicant must be a Canadian citizen, a permanent resident, or a legal resident of Canada on the date of an application for OAS benefits.
Income Clawback
The OAS is not income tested but it is subject to an income claw-back such that seniors will see their payments reduced or eliminated in whole or part once their income exceeds a certain ceiling. For 2024, at incomes above $82,761, an individual will begin having his or her OAS benefits reduced. At this level, the benefits terminate entirely for incomes greater than $138,000. This system helps target the payment of OAS to the needy, with higher-income seniors contributing back to the cost of the program.
How to Apply for OAS
Those who are eligible for OAS are required to apply for the benefit. This can be done online at Service Canada’s website or with a simple call to their customer service line. The applications should be made immediately since OAS benefits are not granted automatically. Upon approval, the senior will start receiving OAS directly into his or her bank account on a monthly basis.
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