Old Age Security is one of Canada’s largest public assistance program which is funded directly out of the Federal Government’s revenues. The program provides a monthly payment to Canadians who are 65 years of age or older and meet the residency requirements but payments can be made abroad if old age security non resident requirements are met.
- The OAS pension is a flat rate, payable commencing at age 65. As of 2020, the maximum monthly payment is $613.53
- The payment is increased quarterly to match increases in the Consumer Price Index.
- Old Age Security recognizes same-sex and opposite sex common-law partners.
- OAS benefits are taxable income to the recipient
Eligibility of Old Age Security
Your employment history has no basis on qualifying for the OAS pension as it does regarding Canada Pension Plan. Eligibility to receive OAS depends on your residency and how long you’ve lived in Canada. If you’re thinking of receiving benefits outside of Canada, you must been the Old Age Security non resident requirements mentioned, below.
If you are applying from inside Canada, you must:
- be 65 years old or older;
- be a Canadian citizen or a legal resident at the time you submit your OAS pension application
- You have lived for at least 10 years since the age of 18.
If you are applying from outside Canada, you must been the Old Age Security non resident requirements:
- be 65 years old or older;
- have been a Canadian citizen or a legal resident of Canada on the day before you left Canada; and
- have lived in Canada for at least 20 years since the age of 18.
How can I receive a full pension?
In order to receive a full pension, an individual would qualify if they’ve lived 40 years in Canada after the age of 18. If the applicant does not qualify for a full pension, they may be eligible for a pro-rated pension after a minimum of 10 years of residency in Canada after the age of 18.
The partial or pro-rated pension is calculated at the rate of 1/40th of the full OAS pension for each complete year of residence in Canada after the age of 18.
Absence from Canada
A pensioner can apply for OAS from outside of Canada pending that the individual
- has lived in Canada for at least 20 years after reaching the age of 18.
- lived and worked in a country that has a social security agreement with Canada and you meet the 20 year residence requirement
If an individual does not meet either requirement, the individual may be able to receive OAS only for the month they left Canada and six months after that. Payments would start again once the individual arrives back in Canada.
- Example: If you left Canada in February, you would receive payments until the end of August. After August, the payments would stop until you return to Canada.
Non Resident Tax Reporting for Old Age Security
Non Resident seniors who receive OAS payments must submit an Old Age Security Return of Income (OASRI) so that the CRA can determine if you still meet Old Age Security non resident requirements and if you have to pay a clawback. It’s important to do so in order to ensure that your OAS payments are not cut off.
- If you reside in a country that has a tax treaty with Canada, you may be exempt from filing this form.
Income Taxes for Old Age Security
Canadian Residents
OAS pension are considered to be taxable income and must be declared on your income taxes.
Non Residents
If you live outside of Canada and are not considered a Canadian resident for income tax purposes, a non-resident tax of 25% is withheld from your monthly payment, unless reduced by a tax treaty between Canada and the country you reside in. For more information on the Old Age Security non resident requirements, contact the CRA.
