Introduction to OAS
The Old Age Security (OAS) pension is a vital component of Canada’s retirement income system. It provides a monthly payment to eligible Canadians who are 65 years of age or older. Recently, there have been changes to the OAS that benefit seniors, particularly those 75 years of age and older.
Changes to OAS for Seniors 75 and Older
In July 2022, the Canadian government introduced a change to the OAS program. This change resulted in a 10% increase in OAS payments for pensioners who are 75 years of age or older. This increase is a permanent boost to their monthly payments, not a one-time payout. The reason for the delay in receiving the increased payment is that the first increased payment is made in the month after the individual turns 75. For example, if a person turns 75 in May, they can expect to receive the increased payment in June.
How the Increase Works
The good news is that this increase is automatic, so seniors do not need to apply for it. The increase is also permanent, meaning that it will continue for the rest of their lives. To give you a better idea, the maximum monthly OAS payment for the second quarter of 2025 for Canadians who started their pension at 65 is $800.44. However, to receive the maximum payment, the individual’s net world income for the tax year 2023 must be less than $148,179.
Applying for CPP and OAS
If you are new to the OAS or Canada Pension Plan (CPP), you may be wondering how to apply. Service Canada has guidelines for processing applications. Applying online is the fastest way, taking less than two weeks. You can apply by registering for your MY Service Canada account or logging into your existing account. On the other hand, if you send a paper application, processing can take up to four months.
When Do OAS and CPP Payments Start?
It’s essential to know when you can start receiving OAS and CPP payments. An OAS pension can begin for Canadians at the age of 65. In contrast, a CPP pension can start at the age of 60. Understanding these timelines can help you plan your retirement and ensure you receive the benefits you’re eligible for.
Conclusion
In conclusion, the recent changes to the OAS program have provided a significant boost to seniors 75 years of age and older. The 10% increase in OAS payments is a permanent and automatic benefit that can make a big difference in their lives. If you have questions about your personal financial situation or need help applying for CPP and OAS, don’t hesitate to reach out. Remember to plan ahead, and take advantage of the benefits available to you to ensure a comfortable and secure retirement.