OAS Payment Dates in Canada 2024: What You Need to Know

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OAS Payment Dates in Canada 2024: What You Need to Know

The Old Age Security (OAS) pension is a monthly payment available to most Canadians 65 years of age or older. Along with the Canada Pension Plan (CPP) and Guaranteed Income Supplement (GIS), OAS is one of the three main government-sponsored retirement benefit programs in Canada.

Understanding when you will receive your OAS payments and how much you can expect is an important part of retirement planning. This article will cover OAS payment dates, amounts, eligibility, applications, and more for 2024.

When are the OAS Payment Dates in 2024?

OAS payments are made on fixed dates each month. If the payment date falls on a weekend or public holiday, payments are issued on the nearest business day before.

Here is the complete schedule of OAS payment dates for 2024:

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

OAS and CPP payments dates are scheduled on the same days. The payment schedule tends to be around the end of each month.

For example, the January 2024 OAS payment was on January 29 since the 31st was on a Wednesday. The February payment was issued on February 27, as the 28th was a Thursday.

Individuals who receive OAS by cheque can expect delivery approximately 1-2 weeks following the payment date. Direct deposit is the fastest and most secure method of depositing OAS right on the payment date.

Weekends and Holidays

If an OAS payment date falls on a weekend or public holiday, such as Christmas Day, the payment is issued on the nearest business day before.

For example, the December 2024 OAS payment will be made on Friday, December 20, rather than Sunday, December 22nd or Tuesday the 24th (Christmas Eve).

Here are the statutory holidays in Canada to be aware of:

• New Year’s Day – January 1
• Family Day – Third Monday in February
• Good Friday – Friday before Easter Sunday
• Victoria Day – Monday before May 25
• Canada Day – July 1
• Labour Day – First Monday in September
• Thanksgiving – Second Monday in October
• Remembrance Day – November 11
• Christmas Day – December 25
• Boxing Day – December 26

Most provinces have similar statutory holiday schedules except for some Family Day and Remembrance Day variations.

Direct Deposit

You can sign up through your My Service Canada Account online to receive your OAS payments quickly by direct deposit into your Canadian bank account.

You can also download and print the direct deposit enrolment form and submit it by mail or in person. You will need to provide your banking information.

Direct deposit ensures you receive the OAS funds securely on the payment date. Paper cheques can be delayed, lost in the mail, or stolen.

How Much Will My OAS Payment Be?

The actual amount you receive depends primarily on three factors:

1. How long you’ve lived in Canada after turning 18
2. Your age when OAS payments start
3. Your annual income

Next, we’ll go over each of these factors in more detail.

Years Lived in Canada

The number of years you’ve resided in Canada since turning 18 determines your full or partial OAS eligibility.

• Full OAS Eligibility: You’ve lived in Canada for at least 40 years after turning 18. This qualifies you for the maximum monthly OAS pension amount.
• Partial OAS Eligibility: You must have lived in Canada for 10-39 years after turning 18. Based on this number of years, you can receive a prorated monthly amount.

For example, if you lived in Canada for 25 years after age 18, you could receive 25/40ths of the total OAS amount.

Certain periods living abroad can count towards your Canadian residence if:

• You were a Canadian resident who left Canada within the last 6 months after living here.
• You’re a Canadian resident who was employed abroad by a Canadian employer.

There are also exceptions if you have contributed to the social security system of a country that has an agreement with Canada.

Canadians who do not meet the 10-year minimum will not qualify for any OAS pension.

Age When OAS Starts

You can choose to delay receiving your OAS payments until age 70, which allows you to increase your monthly amount.

For every month you delay receiving OAS after age 65, your pension amount rises by 0.6%. This equals a 7.2% increase per year deferred.

Here is a table illustrating the percentage increase in OAS payments for each year you defer starting your pension from age 65 to age 70:

Years Deferred	Age You Begin Receiving OAS	Percentage Increase in OAS Payment
1 year	66	+7.2%
2 years	67	+14.4%
3 years	68	+21.6%
4 years	69	+28.8%
5 years maximum	70	+36%

For example, if the full OAS amount when you turn 65 is $600 per month, delaying your pension for 3 years to age 68 would increase it by 21.6% to $729 per month.

The disadvantage is that you miss out on income during those deferred years. Delaying OAS typically benefits those who continue working full-time in their late 60s.

Annual Income

Higher-income seniors earning above an annual threshold have their OAS benefits reduced through clawbacks. We’ll cover the clawback in more detail shortly.

In summary, your total income from all sources (employment, investments, pensions, etc.) determines whether clawbacks apply. If so, your OAS payments are reduced..

Are OAS Payments Taxable?

Yes, OAS pension payments are considered part of your taxable income on your annual tax return.

Taxes are not automatically deducted from your monthly OAS payment. However, you can choose to enroll in voluntary tax deductions.

There are two options to have tax deducted from your OAS cheques:

1. Request for Voluntary Federal Income Tax Deductions Form: You can print and submit this form by mail or in person to request fixed tax deductions from your OAS payments. Generally, this makes the most sense if your income is relatively stable.
2. Online through My Account: You can request or adjust tax deductions digitally through your CRA My Account. This offers more flexibility when changing your deductions.

If you do not enroll in voluntary tax deductions, you may need to pay tax instalments quarterly to avoid penalties. Your OAS benefits are taxable and included on your annual return.

Any non-OAS income, including CPP, other pensions, investments, RRSP/RRIF withdrawals, and employment earnings, is also taxable. Work with a tax professional to determine your optimal annual tax obligation.

What is the OAS Clawback?

The OAS “clawback” refers to high-income seniors having to repay part or all of their Old Age Security pension.

If your net annual income exceeds a certain threshold, you are required to repay some OAS benefits through your taxes. This is formally known as the “OAS recovery tax.”

Here’s how the OAS clawback works:

• A recovery tax (clawback) threshold is set each year by the government.
• If your net income exceeds the threshold, you repay a percentage of the excess.
• For every $1 over the threshold, you repay $0.15 (15%) of OAS.
• This is spread out in monthly instalments over the following tax year.

The clawback thresholds for recent years are:

• 2023: $86,912
• 2024: $90,997

Let’s look at an example:

• The 2023 OAS clawback threshold is $86,912
• If you earn $95,000 in 2023, your net income exceeds the threshold by $8,088 ($95,000 – $86,912).
• 15% of $8,088 is $1,213.20. This is your total OAS repayment for 2023.
• Spread over 12 months, the monthly repayment from July 2024 to June 2025 would be $101.10.

Strategies to Reduce OAS Clawback

Here are some tips to potentially minimize OAS clawbacks if your income exceeds the thresholds:

• Defer starting OAS: Continue working and delay receiving OAS until you retire and your income is lower. Each year you deferred increases your future OAS.
• Split pension income: If your spouse has a lower income, attribute some of your pension income to them to spread income.
• Use TFSA: Income earned in a TFSA does not count towards net income. Hold assets with taxable distributions in a TFSA.
• Minimize RRSP/RRIF withdrawals: These count as income. Withdraw less to potentially stay under the OAS clawback threshold.
• Offset with deductions: Tax deductions for CPP, union dues, child care, etc. help reduce your net income calculation.
• Contribute to RRSP: An unused RRSP contribution room can help offset taxes owned on OAS income.

How Do I Apply for OAS?

Most Canadian residents are automatically enrolled for OAS pension benefits when they turn 64, as long as they have filed a tax return in the last decade.

If you receive a notification letter from Service Canada confirming your enrollment, you need not take any action. Checks will begin arriving around the month after your 65th birthday.

However, if you do not receive an enrolment confirmation letter after turning 64, you will need to submit an OAS application either online or by paper.

Here is the step-by-step process to apply for OAS:

1. Determine when you want payments to start: You can begin OAS anytime between ages 65 and 70. Deferred payments increase by 0.6% per month.
2. Gather personal information: Your social insurance number, banking details, marital status, residence history, and spouse’s details are available.
3. Apply online: The easiest way is to log in to your My Service Canada Account and complete the application digitally.
4. Or submit a paper application: Alternatively, you can print and fill out the OAS application form by hand. Mail it to Service Canada or drop it off at a Service Centre.
5. Provide any supporting documents: You may need to supply certain personal documents to prove your identity, residence, age, and income. Have these ready.
6. Receive confirmation: After submitting, you will receive a confirmation of your OAS application. Your first payment should arrive on the scheduled date you chose.

It’s best to apply 6-11 months before you turn 65 or when you want payments to begin. This ensures your OAS is approved in time to avoid delays.

If you are over 65 and missed enrolling, you can apply immediately for up to 11 months of retroactive payments.

When Should I Apply for OAS?

Ideally, you should submit your OAS pension application 6-11 months before you turn 65 or when you want payments to start.

Here are the reasons why it’s recommended to apply up to 11 months in advance:

• Allow time for processing: Submitting your application early guarantees that OAS has time to review and approve everything without delaying your initial payment.
• Coordinate payment start date: You can choose when you want to begin receiving OAS anytime between 65-70. Applying in advance allows you to plan the start date.
• Receive retroactive payments: If you apply after age 65, you can receive up to 11 months of back payments.
• Enroll for direct deposit: Signing up for direct deposit takes time to set up with your bank. Applying early ensures direct deposit will be in place when payments begin.
• Review award letter: You’ll receive an award letter outlining your OAS amount and payment schedule. Applying early lets you confirm the details are correct.
• Adjust if needed: With an advanced application, you have time to provide any missing information or make changes before payments commence.

Once you turn 70, it’s essential to apply because payments stop accruing at that point. Submit your OAS pension application as soon as you are eligible to make sure you receive all the benefits you are entitled to.

Conclusion

Knowing exactly when OAS payments are made each month and how much you are entitled to receive is key for retirement planning.

While most Canadian seniors get OAS benefits automatically, you should still understand the eligibility requirements, payment schedules, tax implications, and potential clawbacks or supplements.

OAS provides a monthly base pension, but the amount can vary significantly based on your individual situation. Optimizing your benefits requires knowledge of the rules, proactive planning, and weighing different options, like deferring or splitting income.

Use this comprehensive guide as a reference whenever you have questions about receiving OAS now or planning for it in the future.

FAQs related to OAS payment dates in 2024

Article Sources

• OAS payment dates in 2024, and more to know about Old Age Security – moneysense.ca
• How much will your OAS payments be? – qtrade.ca
• OAS Payment Dates In 2024 – moneygenius.ca
• Old Age Security (OAS) Payment Dates in 2024 – springfinancial.ca

OAS Payment Dates in Canada 2024: What You Need to Know
Ben Nguyen