2024 OAS Updates: What to Expect
In Canada, the Old Age Security (OAS) program is a key retirement plan, available to individuals at 65, provided they meet specific residency criteria. Canadians supplement this with personal savings, employer pensions, and other sources of income. Among the various senior benefits in Quebec and across the country, the OAS Pension for 2024 stands out.
Countless Canadians rely on OAS for essential financial support during retirement, designed to offer a foundational income for seniors. Discover more about the anticipated changes in OAS for 2024, including payment dates. I’ve also included crucial information about the OAS Pension, including the payment schedule for 2024. Explore the upcoming modifications to OAS in 2024.
2024 OAS Updates
The OAS pension, distinct from job-related income like the Canada Pension Plan (CPP), relies on the general government’s tax revenues. Adjustments to the OAS pension occur quarterly based on the Consumer Price Index, reflecting changes in living expenses. To enhance the affordability of living for older Canadians, the government is increasing the Old Age Security pension to CAD 68,500 from CAD 66,600 starting January 1, 2024. The OAS Clawback limit is also raised to CAD 90,997 from CAD 86,912. Keep informed about OAS Pension Payment Dates in 2024 and other important details in this article.
2024 OAS Updates Overview
| Post Topic | OAS Changes in 2024 |
| Department Name | Canada Revenue Agency |
| OAS Beneficiaries | 65+ retirees of Canada |
| Category | Government Aid |
| OAS Amount in 2023 | CAD 66500 |
| OAS Amount in 2024 | CAD 68500 |
| OAS MCL | CAD 90997 |
| Official Website | canada.ca |
OAS Eligibility Criteria
You become eligible to receive Old Age Security (OAS) at the age of 65, and typically, Service Canada will send you one of two letters the month after your 64th birthday:
- A notice indicating your automatic enrollment selection.
- A letter advising you to apply for OAS as soon as possible, with the potential eligibility.
To qualify for OAS, you need to be a Canadian citizen or lawful resident and have lived in Canada for ten years after turning 18.
If you’re a Canadian working abroad for a Canadian employer, you might be able to count your time spent working overseas as residence, provided you return to Canada within six months after quitting your job or if you reach 65 while working.
Additionally, if you have resided in a country with a social security agreement with Canada or have made contributions to the social security system of such a nation, you may additionally qualify for a pension from that nation or an OAS pension.
Understanding Old Age Security (OAS) in Canada
OAS provides a fixed-rate benefit: CAD 778.45 for those 75 and older, and CAD 707.68 for those aged 64 to 74, without the need to quit your job. To qualify, you must have resided in Canada for 10 years after turning 18, with a requirement of 40 years of residency after age 18 for full benefits.
If the 40-year criteria aren’t met, benefits are based on residency length. Landed immigrants may qualify for an enhanced GIS if not receiving full OAS.
OAS payments are not affected by spouse income, employment status, or GDP percentages lower than 1%. Projections suggest a decrease in the spending to GDP ratio from 3.1% in 2030 to 2.6% by 2050.
By 2031, health care expenses are expected to rise from 12% to 18% of GDP. Canada allocates a smaller portion of its GDP to public pensions compared to many European countries and the US.
OAS Boost in 2024
In Canada, financial support for retirees comes through the Old Age Security Pension (OAS), a crucial element of the country’s retirement system. Every Canadian aged 65 and older is eligible for this monthly payment, irrespective of their job or income history. The aim is to provide a reliable and dignified retirement income, enhancing the financial well-being of the elderly.
The Old Age Security Pension Payment, supporting seniors until 2024 when the Canadian Pension Plan goes global, is a government initiative. Individuals aged 65 and above qualify for monthly pension payments. The current payout was 66500 Canadian dollars, and there’s an anticipated Old Age Scheme payout increase in 2024, starting on January 1. The OAS amount for 2024 is expected to rise to CAD 68500.