Page 123 - A Canuck's Guide to Financial Literacy 2020

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Old Age Security Pension

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.

• The OAS pension is a flat rate, payable commencing at age 65. As of 2019, 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 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:

• 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.