OAS Payment Dates 2024: How Much OAS Will You Get?

Old Age Pension payment dates usually occur at the end of each month, and the next OAS payment date is October 29, 2024. If you applied for direct deposits, your Old Age Security (OAS) will be disbursed near the end of every month, and those receiving cheques can expect them to be mailed out on or near the OAS dates.

The Old Age Security is one of the retirement income sources for seniors aged 65 and above in Canada that provides financial support that can be added to other income streams, such as the Canada Pension Plan (CPP), ensuring financial security for eligible seniors.

In this blog post, I will answer all your questions on the OAS dates 2024, eligibility, the application process, and more.

OAS Payment Dates for 2024

You can expect to receive your next Canada Old Age Pension on the 29th of October, 2024. Your OAS benefits are directly disbursed to your bank account on the scheduled OAP dates for 2024.

The following are the Old Age Security payment dates for 2024:

January 29, 2024
February 27, 2024
March 26, 2024
April 26, 2024
May 29, 2024
June 26, 2024
July 29, 2024
August 28, 2024
September 25, 2024
October 29, 2024
November 27, 2024
December 20, 2024

You can receive the Old Age Pension through direct bank deposit or cheque, depending on your choice. If you choose to receive your payments by cheque, you will receive your payment on OAS cheque dates, which may come on or after the Old Age Pension payment dates.

However, the Federal government of Canada has decided to switch from payment by cheque to direct deposits for all its payments and benefits. Quickly set up your direct deposit to your bank account by calling 1-800-277-9914. You can also do this online through your My Service Canada Account.

How Much is OAS in Canada?

For the January 2024 to March 2024 benefit period, the maximum payment amount is $713.34 per month ($8,560.08 annually) for Canadian seniors between 65 and 74 years old. The maximum monthly payment for seniors aged 75 and older increases to $784.67 ($9,416.04 per year)).

However, the actual amount you receive is determined by factors such as the number of years you have lived in Canada after turning 18, your income level, and your marital status. If you are between 65 and 75 years old, your annual net world income in 2022 must be below $142,609 and below $148,179 for seniors aged 75 and older.

The government of Canada recently introduced a benefits calculator that you can use to estimate how much Old Age Pension benefits you could receive.

It’s worth noting that the OAS payment undergoes a review process in January, April, July, and October, wherein adjustments are made based on the Consumer Price Index, reflecting changes in the cost of living. This means that if the cost of living increases, your OAS payment will also rise accordingly, providing some protection against inflation.

What is Old Age Security (OAS) Pension?

The Old Age Security (OAS) is a monthly payment designed to provide financial support for seniors aged 65 and above in Canada. While Service Canada may automatically enrol some individuals for the Old Age Pension, others must apply for this benefit.

In Canada, OAS payment is one of the primary sources of retirement income for eligible seniors, alongside the Guaranteed Income Supplement (GIS) and the Canada Pension Plan (CPP). Like the CPP, the OAS pension is taxable and aims to help retirees cover their living costs effectively during their golden years.

What sets OAS apart from the CPP is that you don’t need to contribute a portion of your earnings during your active working years to qualify for it. This makes it more accessible to a wider range of retirees. However, it’s important to note that your OAS pension amount can fluctuate based on your annual net retirement income. The pension can increase, reduce, or even decrease depending on income.

Additionally, if you receive a modest retirement income, you may also be eligible for the Guaranteed Income Supplement (GIS), which can provide an additional allowance to support your financial needs further.

Who is Eligible for Old Age Pension?

To be eligible for the Old Age Pension payments, you must:

Be 65 years old or older.
Be a citizen or legal resident of Canada.
Have lived in Canada for at least ten years after age 18.

However, Canadian citizens or legal residents who are not currently in Canada can still receive the Old Age Pension deposits, but they must:

Be 65 years old or older.
Have lived in Canada as a Canadian citizen or a legal resident.
Have lived in Canada for not less than 20 years, since age 18.

According to the “Do you qualify” section on the Federal OAS website, Canadians working outside Canada for Canadian employers, such as the Canadian Armed Forces and banks, may have their time working abroad counted as residence in Canada.

To qualify:

You must have returned to Canada within 6 months of ending employment
Turned 65 years old while still employed and maintained residence in Canada during your time outside of Canada

However, you must be able to provide proof of employment from your employer and proof of physically returning to Canada (unless you turn 65 while still employed outside Canada).

Canada Old Age Pension Application

To complete your OAS application, follow these steps:

Step 1: Check Your Eligibility

The CRA may send you a letter informing you that you’re eligible for the Old Age Security (OAS) pension. If you receive a letter from the CRA asking you to apply or if there’s any incorrect information in the letter you received, you need to apply for the OAS pension.

If you didn’t receive a letter about the OAS pension the month after you turned 64, don’t worry. Simply contact the CRA to find out if you need to apply.

Step 2: Choose Your OAS Start Date

When applying, you will be asked to select one of the following options for your OAS start date:

a) Start receiving your pension at age 65 (your pension will begin the month after your 65th birthday).

b) Choose a specific date for your OAS pension to start.

Step 3: Applying for OAS

There are two methods to apply:

A) Apply Online:

To apply online, you must be at least one month past your 64th birthday and not currently receiving an Old Age Security pension. You haven’t already applied for Old Age Security, and Service Canada is not currently assessing your OAS application.

In addition, you must live in Canada, and your account should not have an authorized third party (e.g., a person acting by proxy).

Ensure you have a My Service Canada Account (MSCA) before starting the application process. Note that the application cannot be saved or paused, and the session expires after 20 minutes of inactivity. So, it is important that you gather your information before you begin your application.

You will need your:

Social Insurance Number (SIN)
Social Insurance Number, date of birth of your spouse or common-law partner (if you have one)
information about where you have lived since age 18
the date you would like your pension to start
your banking information to sign up for direct deposit
your reduction in employment or pension income, if applicable

B) Apply by Mail:

If you prefer to apply by mail, you must complete the paper form “Application for the OAS and the GIS” (ISP-3550). Include certified true copies of the required documents and mail the application to the nearest Service Canada office.

Step 4: Receive the Decision Letter

After you submit your OAS application, the CRA will send you a letter with either a decision on your application or a request for more information. A decision letter will include the following details:

The amount you are entitled to receive per month.
The date of your first payment.
Any previous eligible payments owed to you.

Step 5: Check Your Application Status

To view your OAS application status:

Sign in to your My Service Canada Account (MSCA).
Contact Service Canada directly if you don’t have an MSCA account.

Step 6: Request a Review if Necessary

If you disagree with the decision provided, you have 90 days from receiving the letter to request a review in writing. Your application will be reviewed by Service Canada staff, who were not involved in the original decision-making for your application.

You can apply for reconsideration online through your My Service Canada Account, using a printable form, or a written request, send it by mail, or submit it in person at any Service Canada office.

Feel free to contact Service Canada for support if you need any assistance during the process.

How is OAS Calculated?

Your Old Age Pension benefit amount depends on your income and how long you’ve lived in Canada since turning 18.

You’ll get the full OAS pension amount if you’ve lived in Canada for at least 40 years after turning 18. But if you’ve lived here for fewer years, you’ll receive a partial benefit based on the number of years you’ve resided in Canada as an adult.

So, if you lived in Canada for 30 years after turning 18, you’d receive 30/40th of the maximum benefit, which is equivalent to 75% of the full amount.

You can delay your first OAS payment past age 65 up to age 70. If you choose to do so, your pension payment will increase by 0.60% for each month of delay. This means you could get up to 36% more by waiting until age 70 to start receiving your OAS pension.

Is OAS Taxable?

Your Old Age Security Canada payments are taxable income. However, taxes are not automatically deducted each month. You have two options to have federal income tax deducted from your OAS payments:

Use My Service Canada Account: Sign in and request voluntary tax deductions.
Complete the Request Form: Fill out the “Request for Voluntary Federal Income Tax Deductions CPP/OAS” form (ISP-3520OAS) and submit it by mail or at a Service Canada office.

If you don’t ask for monthly tax deductions, you may need to pay your income tax every quarter. To avoid any tax surprises, consider using one of the options above to manage your tax obligations efficiently.

Is OAS Increasing in 2024?

Old Age Security payment amounts are reviewed annually in January, April, July, and October to ensure they reflect the cost of living increases, as measured by the Consumer Price Index (CPI). This ensures that the benefits keep pace with inflation, providing valuable support to Canadian seniors.

In the year 2023, there were several notable changes to the OAS payment amounts due to the significant changes in the CPI. One of the significant increases is a 1.3% increase in the monthly OAS pension for the January to March 2024 payment period, based on quarterly indexation to the CPI. This change aims to slightly boost recipients’ income in response to the cost of living during this period.

When Does Old Age Pension Come Out?

You can expect to receive your OAS deposits around the last week of each month. They are typically deposited at the end of the month to ensure financial stability for the next month. Anticipating the OAS payment dates will help you plan your finances and avoid unexpected expenses effectively.

When Does OAS Get Deposited?

Old Age Pension dates are usually made near the end of each month. Canadian seniors can expect to receive their Old Age Pension for each month at the end of the month. This benefit is paid out to provide financial support to eligible seniors in Canada, thereby ensuring financial stability.

When is OAS Paid This Month?

The OAP Payment date for this month is October 29. If you are a Canadian senior and qualify for the OAS payments, you can expect to receive a monthly deposit on each of the OAS Payment Scheduled Dates for 2024.

What is the OAS Clawback?

The Old Age Security clawback, also known as the OAS Recovery Tax, is an important aspect to consider for high-income retirees aged 65 and above, as it may require them to repay a portion or the entirety of their OAS pension.

Interestingly, the government refers to this process as the OAS recovery or OAS repayment rather than using the term “clawback.”

For the July 2023 to June 2024 payment period, the OAS pension amount is subject to a clawback rate of 15% when an individual’s income exceeds the threshold of $81,761. If your annual income exceeds $134,626 (or $137,331 for seniors aged 75 and older) during this payment period, you will not qualify for OAS.

To better understand the OAS clawback, let’s consider an example: If your net income in 2022 was $100,000, and the OAS limit for that year is $81,761, the excess income would be $18,239. Applying the clawback rate of 15%, the calculated repayment would be $2,735.85.

How to Minimize OAS Clawback

Now that you know the implications of Old age security clawback, you must learn how to minimise the chances. Here are three practical tips to help you minimise your OAS clawback and maximise your payment.

Split Your Income: One practical way to minimise clawback is to split your income with your spouse or common-law partner. How much you can split depends on your net income and retirement benefits. It could be up 20%, 30%, or even 50%. The aim is to have your income below the OAS threshold.
Invest: By investing in different securities and building your portfolio, your income will likely meet the OAS threshold. Also, investing in a tax-free savings account and registered retirement accounts will reduce your net income while also helping you maximise your retirement income. Thus, even if you can’t invest in other securities, you should consider investing in TFSA and RRSP accounts while receiving the OAS payment.
Delay Your OAS Payment: Another smart way to reduce the OAS clawback is to delay your first OAS payment. As mentioned, you can start collecting the OAS payment the following month you turn 65, but delaying up to 5 years can maximise your benefit. However, you shouldn’t delay your OAS payment beyond 70 years; otherwise, you will lose a great deal. This is because the more you exceed 70 years, your benefit reduces.

Old Age Security Supplement

The Guaranteed Income Supplement (GIS) is a monthly payment you can get alongside the OAS pension on the OAS payment dates if you:

Have reached the age of 65 or above
Live in Canada
Are receiving the OAS payment
Have less than $18,984 and are widowed, divorced, or single.
Your income combined with your spouse or common-law partner’s income is less than $25,104 (if they are entitled to the full OAS amount), $45,504 (if they are entitled to a partial OAS amount), or $45,504 (if they’re entitled to the Allowance).

The Supplement program is specifically designed to support low-income Old Age Security pensioners based on their income level. It provides financial assistance and is non-taxable.

If you are eligible to receive the Supplement, you will receive a notification by mail indicating when you can begin receiving the first payment. This notification will be sent the month following your 64th birthday. However, you may need to apply for the benefits in some cases.

You can check out the Federal website for more information on the different supplements:

Final Thoughts on OAS Payment Dates

The OAS pension stands as a valuable pillar of financial support for eligible Canadian seniors aged 65 and above, providing a dependable source of monthly income during retirement.

As you prepare for your retirement journey, proactive planning becomes essential. Anticipate the peace of mind that comes with timely OAS pension payments by staying informed and preparing for the scheduled Canada Old Age Pension dates. Secure your financial future with strategic foresight, ensuring a comfortable and well-prepared retirement.

FAQs on Old Age Security Dates

How Much is Old Age Pension in Canada?

There’s no fixed amount on the Old Age Security (OAS) pension. How much you get depends on your marital status, income, and how long you have resided in Canada upon reaching 18 years.

What is the Income Limit for OAS?

The income limit for OAS refers to the maximum income you’re eligible to receive the OAS payment.