What is Old Age Security Benefits and How to Apply?

The Old Age Security (OAS) program provides income security to Canadian seniors who are 65 years or older.

Many Canadians from the Baby Boomer age will be reaching the retirement age starting 2011 and if you are or you know someone who is retiring, let them know about these government benefits available to them.

Old Age Security benefits include:

1. Basic OAS Pension – If you are 65 or older and lived in Canada for at least 10 years after turning 18, and you are a Canadian citizen or a legal resident of Canada, you are qualified to apply for Old Age Security (OAS) pension.

2. Guaranteed Income Supplement (GIS) – If you are eligible for OAS pension and have little or no income you are qualified to apply for additional benefit called Guaranteed Income Supplement (GIS). Even if you did not qualify for GIS before, you should apply for GIS if you had a change in your income or marital status.

3. Allowance for the Survivor – If you are between 60 to 64 years age and have little or no income and your spouse or common-law partner has passed away, you should apply for a benefit called the Allowance for Survivor.

4. Allowance – This is for a married or common couple. If your partner receive the OAS pension and is eligible to receive the GIS, you should apply for a benefit called Allowance.

If you receive benefits no. 2, 3, and 4 you can renew these benefits by simply filing your income tax return by April 30th of each year.

If you receive benefits no. 2, 3 and 4 and your pension or employment income drops, you may request for an adjustment of your OAS pension benefits.

Remember OAS benefits are subject to income claw back, i.e. if you earn more than the exemption amount from employment, your OAS benefit will be reduced and could be totally eliminated. Currently OAS exempt amount for employment income is $3,500. If you would like to avoid any claw back to your OAS benefits, you should consult your tax advisor.

OAS benefits are not provided automatically, even if you reach qualifying age. You must apply for these benefits to Service Canada upon reaching qualifying age or after that any time, when you would like your benefits to be started.