$713.34 Old Age Security Pension in September – These 65+ Age Seniors will get this

Canada’s Old Age Security (OAS) pension provides essential financial support to seniors aged 65 and over, helping them maintain a basic income in retirement. As of September 2024, eligible seniors aged between 65 and 74 will receive a maximum monthly payment of $713.34, while seniors 75 and older will receive $784.67. This monthly benefit, funded through general tax revenues rather than direct contributions, is crucial for many retirees who depend on it for their living expenses.

In this article, we’ll break down the details of the OAS pension, including eligibility criteria, how the payments are adjusted for inflation, what to expect from your monthly pension, and tips on maximizing your benefits.

$713.34 Old Age Security Pension in September

The Old Age Security (OAS) pension is an essential part of Canada’s social safety net for seniors. With a maximum payment of $713.34 in September 2024 for those aged 65 to 74, and $784.67 for those 75 and older, it provides critical financial support. Whether you’re planning to apply for OAS soon or are considering deferring your payments, it’s important to understand your options and the factors that can affect your benefits, such as the clawback and inflation adjustments.

What Is Old Age Security (OAS)?

The OAS is a federal pension program designed to provide financial support to Canadian seniors. Unlike the Canada Pension Plan (CPP), which is based on contributions during your working years, the OAS does not require contributions. Instead, it’s funded through tax revenues and is available to most Canadians over 65, regardless of employment history.

For those aged 65 to 74, the maximum monthly payment in September 2024 is set at $713.34, while seniors aged 75 and older receive $784.67, thanks to a permanent 10% increase introduced in 2022 for this age group.

How OAS Payments Are Adjusted

One of the essential features of OAS is its adjustment for inflation. OAS benefits are indexed quarterly, meaning they are adjusted every three months in January, April, July, and October to reflect changes in the cost of living as measured by the Consumer Price Index (CPI). For instance, in 2024, the payments increased by 0.8% due to inflation adjustments.

Eligibility Criteria

To qualify for OAS, you must meet the following basic requirements:

• Age: You must be at least 65 years old.
• Residency: You must have lived in Canada for at least 10 years after turning 18. If you have lived in Canada for less than 40 years, you will receive a partial pension, calculated based on how long you have lived in the country as an adult.
• Citizenship: You need to be a Canadian citizen or a legal resident at the time of your application.

For those who live outside of Canada, the rules are slightly different. You need to have resided in Canada for 20 years or more after turning 18 to continue receiving OAS payments while living abroad.

How to Apply for $713.34 Old Age Security Pension in September

For most eligible seniors, enrollment in OAS happens automatically when they turn 65, provided the government has sufficient information on file. If automatic enrollment does not occur, you must manually apply either through the My Service Canada Account or by sending a paper application.

When Should You Start Receiving OAS?

Seniors can begin collecting OAS as soon as they turn 65, but there is also an option to delay receiving the payments for up to five years, until age 70. For each month you defer, your payment increases by 0.6%, leading to a total increase of 36% if you wait until age 70. For example, if you defer for one year, your monthly payment could increase from $713.34 to approximately $770.

Additional Benefits for Low-Income Seniors

In addition to the OAS pension, there are several additional benefits available for low-income seniors:

• Guaranteed Income Supplement (GIS): This benefit is available to low-income seniors who receive the OAS pension and live in Canada. The GIS is non-taxable and added to your monthly OAS payment.
• Allowance: This is a benefit for individuals aged 60 to 64 whose spouse or common-law partner receives OAS and GIS.
• Allowance for the Survivor: This benefit is available to individuals aged 60 to 64 whose spouse or common-law partner has passed away and who have a low income.

OAS Clawback: What You Need to Know

For higher-income seniors, the OAS pension is subject to a recovery tax, commonly referred to as the OAS “clawback.” In 2024, if your annual income exceeds $86,912, you will start to see a reduction in your OAS payments. For every dollar earned above this threshold, your OAS is reduced by 15 cents. The full clawback applies to incomes above $142,609 for seniors aged 65 to 74, and $148,179 for those aged 75 and over.

Practical Advice for Seniors: Maximizing Your OAS

• Delay Your Payments: If you don’t need the income at age 65, deferring your OAS payments can lead to significantly higher monthly payments when you eventually start receiving them.
• Income Splitting: If you’re married or in a common-law relationship, consider splitting your income to reduce the clawback.
• Use Tax-Free Accounts: Investing in a Tax-Free Savings Account (TFSA) allows you to earn returns without affecting your taxable income, which could reduce your OAS clawback.

Frequently Asked Questions (FAQs)

Q1: Is OAS taxable?
Yes, OAS is considered taxable income, which means you’ll need to include it on your annual tax return.

Q2: Can I receive OAS if I live outside Canada?
Yes, you can still receive OAS while living abroad, provided you meet the residency requirements (20 years in Canada after age 18).

Q3: How often are OAS payments adjusted for inflation?
OAS payments are adjusted quarterly, every January, April, July, and October, based on the Consumer Price Index.