As December begins, seniors in Canada aged 65 and up will get their Old Age Security (OAS) payment earlier than usual. This early payment is aimed at helping with holiday expenses and easing financial stress during this busy season. Here’s a simple guide to what you need to know about OAS this month, from payment dates to eligibility and tips to avoid delays.
What is Old Age Security (OAS)?
OAS is a pension program funded by the federal government to support Canadians aged 65 and older. Unlike the Canada Pension Plan (CPP), OAS does not depend on your work history. It’s an essential part of Canada’s retirement system, helping seniors cover basic expenses.
December 2024 OAS Payment Date
This month, OAS payments will be deposited on Friday, December 20, 2024, about a week earlier than the usual schedule. This change ensures that seniors have funds in time for the holidays. If you’re already enrolled, you don’t need to take any action—your payment will arrive automatically.
How Much Will You Receive?
The amount you get depends on your age and income:
- Ages 65–74: Up to $727.67 per month.
- Ages 75 and older: Up to $800.44 per month.
Payments adjust every three months (in January, April, July, and October) to keep up with inflation.
Income Limits:
To qualify, your net annual income must stay below:
- $148,451 for ages 65–74.
- $154,196 for ages 75 and older.
If you’re unsure about your payment, you can use the CRA’s payment estimator to calculate it based on your income.
Is OAS Taxable?
Yes, OAS counts as taxable income. Taxes are not automatically deducted, but you can request voluntary deductions to avoid a big bill during tax season.
How to request tax deductions:
- Log into your My Service Canada Account.
- Complete the form for voluntary federal tax deductions (CPP/OAS).
Without these deductions, you may need to pay taxes quarterly or when filing your annual return. Residents will receive a T4 slip, while those living outside Canada will get an NR4 slip.
Who is Eligible for OAS?
You may qualify for OAS if you meet the following criteria:
- Age: You are at least 65 years old.
- Residency: You are a Canadian citizen or legal resident when you apply.
- Time in Canada: You have lived in Canada for at least 10 years after turning 18.
If you live outside Canada, you may still qualify if:
- You were a Canadian citizen or legal resident before leaving.
- You lived in Canada for at least 20 years as an adult.
How to Apply for OAS
Most Canadians are automatically enrolled at age 65. If you’re not enrolled, you can apply in two ways:
- Online: Log into your My Service Canada Account and complete the application.
- Paper Application: Fill out the form and submit it, along with certified copies of required documents, to your local Service Canada office.
If you haven’t received a notice by the month after your 64th birthday, you may need to apply manually.
Tips for Receiving Payments on Time
To avoid delays, especially during postal disruptions, set up direct deposit. This method ensures your payment goes directly to your bank account without relying on mail.
How to Set Up Direct Deposit:
- Online: Log into your My Service Canada Account.
- By Phone: Call Service Canada at 1-800-277-9914.
- In Person: Visit a Service Canada office with your Social Insurance Number (SIN) and banking details.
Upcoming OAS Payment Dates for 2025
Looking ahead, here are the payment dates for early 2025:
- January 29, 2025
- February 26, 2025
- March 27, 2025
- April 28, 2025
- May 28, 2025
- June 26, 2025
Plan Ahead for Your OAS Benefits
Old Age Security plays a critical role in helping Canadian seniors maintain financial stability. Staying informed about payment schedules, tax requirements, and eligibility rules ensures you can make the most of this important benefit.
If you have questions or need assistance, visit the Service Canada website or contact them directly for support.