OAS Payment Dates (2022): How Much Will You Get?

November 15, 2021
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Old Age Security (OAS) is one of the most popular retirement plans in Canada. Established to ensure that seniors earn at least $1,000/month—and that there are no low-income seniors struggling to make ends meet—OAS is a vital source of retirement income for millions of Canadians.

OAS payments are made every month via direct deposit to your bank account, or by cheque. To learn about the specific OAS payment dates, how much you can expect to receive, whether you’re eligible for any additional benefits, and more, read on below.

OAS Payment Dates 2022

The OAS pension, Guaranteed Income Supplements, and other supplements and allowances are all paid on the same day. For 2022, the OAS payment dates are as follows:

OAS Payment Dates 2021OAS Payment Dates 2022
January 27, 2021January 27, 2022
February 24, 2021February 24, 2022
March 29, 2021March 29, 2022
April 28, 2021April 27, 2022
May 27, 2021May 27, 2022
June 28, 2021June 28, 2022
July 28, 2021July 27, 2022
August 27, 2021August 29, 2022
September 28, 2021September 27, 2022
October 27, 2021October 27, 2022
November 26, 2021November 28, 2022
December 22, 2021December 21, 2022

Payments are generally made on the third-to-last business day of the month, except for December, when they are paid earlier (before Christmas). Payments are made through direct deposit or by cheque. However, direct deposit is the preferred option. It’s quick, easy to use, and ensures that you’ll get your OAS benefits on time. If you’re already signed up for CPP and have direct deposit set up, your monthly OAS payments will be sent to the same bank account.

What Is Old Age Security (OAS)?

Canadians aged 65 and older are eligible for Old Age Security (OAS), a taxable monthly benefit. Beneficiaries of the plan may also qualify for one of the OAS supplements, including Guaranteed Income Supplement (GIS), allowance for spouses or common-law partners of GIS recipients, and allowance for survivors.

The first public old-age pension scheme in Canada was launched in 1927. However, to get to its present form, the plan has gone through several adjustments and modifications. There are now over 6.7 million people who receive OAS benefits.

Am I Eligible For OAS?

Old Age Security Pension (OAS) is available to people 65 years old or older and have lived in Canada for at least 10 years since the age of 18. If you live abroad, you must have spent at least 20 years as an adult living in Canada.

Your time outside of Canada may still be considered in some situations, such as if you spent time working abroad for a Canadian employer (e.g., as a diplomat), worked for an international organization, or lived in a country with a social security agreement with Canada.

Your employment history is not taken into account while determining your eligibility for the OAS Pension. As a result, whether or not you have worked is irrelevant, and you may still qualify for monthly payments. However, what you currently earn is considered, so high earners will earn less OAS than low earners.

To summarize, to be eligible for OAS, you must be:

  • 65 years of age or older
  • A Canadian citizen or resident who has lived in Canada for at least 10 years after turning 18 (if you live in Canada).
  • A Canadian citizen or resident who has lived in Canada for at least 20 years after turning 18 (if you live outside of Canada).

How to Apply for OAS

If enough information is available in Service Canada’s records, you may be automatically enrolled for OAS pension. If this is the case, a letter will arrive one month after you turn 64 informing you that you have been enrolled.

However, if the information in the letter is incorrect, or if you received a letter requesting that you apply because of insufficient data to process automatic enrollment, you must apply for OAS manually.

You can apply for OAS via a paper application or online.

To fill out the paper application, download the OAS pension application form, fill it out, and submit certified true copies of all required documentation. The completed form may be dropped off at any Service Canada office or mailed to the closest office.

To apply online, go to your My Service Canada Account, or create one if you do not already have one. You can easily set up a new account using your existing GCKey, bank account, or BC/Alberta government account. A personal access code will be sent to you by mail to finish the registration process and activate your account.

To use the online application method, you need to be a resident of Canada who is not already receiving an OAS pension.

When to apply for OAS

The month before the pension commencement date is the earliest time to apply for OAS benefits. That means if you want to receive your OAS pension by age 65, you can begin an application 11 months before that. This is true whether you use the online or paper application process. You may also wish to defer your payment to obtain more money later on. 

How To Apply For OAS Retroactively

You can retroactively apply for OAS and be paid for up to 12 months. When you apply for OAS, you have the option of choosing a pension start date of 12 months before your application date or the month you turn 65, whichever comes later. For example, if you apply during the month that you turn 66, you may still pick a pension start date of the month you turned 65. If you applied in the month that you turned 67, your earliest start date would be age 66.

Deferring Your OAS Benefits

For each month after turning 65 that you postpone your OAS payments, your monthly pension payment will increase by 0.60%, up to a maximum increase of 36%.

Here’s a table showing how much more you’ll earn if you choose to defer your OAS pension payments.

Starting Age# of monthsOAS Pension Increase
6612 months7.2%
6724 months14.4%
6836 months21.6%
6948 months28.8%
7060 months36%

If your income is now high and you believe it will be lower in the future, delaying OAS might be a good idea. But, before deciding to take the OAS deferral choice, talk with your financial advisor and consider all of the ramifications. You won’t be able to apply for or receive the Guaranteed Income Supplement (GIS) during the deferral period (except as noted below), and your spouse will be ineligible for GIS payments, too.

You should think about how it will affect your income now and in the future — that is, whether you’ll continue working or not, as well as your retirement prospects. Once again, your financial advisor can assist you by taking into account your unique circumstances.

OAS Amounts 2022

The monthly OAS pension is adjusted for inflation every three months. You may receive up to $626.49 per month as an OAS pension from July 2021 to September 2021. This number will be slightly higher for 2022, and I’ll update them when new figures become available.

However, how much OAS you will get is determined by how long you lived in Canada after age 18 and your yearly income from the previous year. If you’ve lived in Canada for at least 40 years after your 18th birthday, you will be eligible for a full OAS pension. For shorter periods, a partial benefit will be paid.

Check the section below on the clawback of OAS pensions to discover how your earnings affect your payments.

OAS Calculator: How Is OAS Calculated?

To find out if you’ll receive the complete pension or just a fraction of it, first figure out how long you’ve lived in Canada as a fraction of 40 years. If you spent 30 years in Canada after your 18th birthday, for example, you’re eligible to receive 75 percent of the maximum monthly OAS pension—30 out of 40 years. If you’ve spent more than years in Canada after the age of 18, you’re eligible to earn the maximum amount.

If your income exceeds the threshold, the pension is reduced by the OAS monthly recovery tax, also known as OAS clawback. This is a simple approach to work out how much money you will receive. When you apply, they will send you a letter telling you how much to anticipate.

OAS Clawback

The OAS clawback threshold for the period of July 2021 to June 2022 is $79,054 in 2020 net income. Any amount earned above this point is subject to an additional 15% reduction in OAS pensions until the OAS completely disappears. For the period beginning July 2021, the maximum income to receive an OAS pension is $128,149.

OAS benefits are paid for a one-year period, starting in July and ending the following June. The income from the previous year is also used to determine how much you will get, as with many other Canadian programs.

Here’s an example of how the OAS clawback works.

Imagine you’re an OAS recipient with a net income of $100,000. This is over the $79,054 minimum threshold by $20,946, so that excess is subject to a 15% tax, which comes to $3,141.90 ($20,946 * 15%) for the July 2021 to June 2022 OAS period. That amount is spread across 12 months, which means you’ll receive $261.83 ($3,141.90 / 12) less OAS per month than you otherwise would.

You can apply for a monthly clawback waiver if you believe your income in the current year will be lower than it was in the prior year. To do so, fill out Form T1213OAS Request to Reduce Old Age Security Recovery Tax at Source and submit it to the nearest tax office listed on the form.

Minimizing The OAS Clawback

There are a few ways to minimize the amount of OAS that gets clawed back. Those include:

  • Maxing out your RRSP deductions if you’re under 71 years old
  • Splitting your pension income with a spouse (if they earn a lower income)
  • Generating investment income using a Tax Free Savings Account (TFSA)
  • Deferring your OAS if you expect to earn a lower income in the future

Your unique circumstances and retirement plans will determine the best option, and you may want to employ several methods simultaneously. If you’re not sure where to start, speak with a financial planner knowledgeable about OAS. 

Is OAS Taxable?

Because it is retirement income, the Old Age Security Pension is taxable. As a result, all of your monthly OAS payments are added to your income at the end of the year and taxed. When it’s time to file taxes, you’ll get a T4A (OAS) tax slip (or an NR4-OAS slip for non-resident).

Every year, on or before the end of February, you should receive the forms. If you don’t want to wait until tax time to pay your taxes, you may ask for them to be deducted from your pay. You can also request the forms through your My Service Canada Account or send Form ISP3520CPP to a nearby tax office.

OAS Increase 2022

How much is OAS set to increase in 2022?

The monthly OAS pension payments are adjusted for inflation. The indexation is done every four months, so you can expect to see increases of 1.30% or more annually. Furthermore, the government unveiled a one-time tax-free top-up or increase of $500 for eligible seniors.

Seniors Top-Up

The extra $500 will be paid to people who are eligible for OAS in June 2021 and are 74 years old or older (i.e., were born before June 30, 1947). This one-time payment is tax-free and will be given out automatically the week starting August 16, 2021. Approximately 3.3 million individuals will receive the money for an estimated price of $1.7 billion.

OAS Increases In 2022

The OAS pension will be permanently increased by 10% for people who are 75 years old or older from July 2022. This means eligible seniors will receive an additional $766 per year in pensions.

This would be the first meaningful raise to OAS benefits since 1973, outside of quarterly indexation. Unfortunately, it is not accessible to all older individuals.

OAS for those Living Outside Canada

Canada has social security agreements with many countries throughout the world. This means you may continue to receive your monthly pension while living outside of Canada, and the time spent away from home can be taken into account when determining your OAS eligibility.

Depending on the country you live in, you may be able to get your OAS payments as direct deposits and in local currency. Find out more about OAS for Canadians who live outside of Canada here.

OAS Supplements

Seniors who meet the low-income requirements may also qualify for the following supplements, which are determined by their income:

Guaranteed Income Supplement (GIS)

For OAS recipients with lower incomes. Depending on your marital status, you can get up to a maximum of $563.27 to $935.72. Your earnings are used to calculate the actual amount.

If you’re single and earn less than $18,984 per year—or if your family’s combined income is less than $45,504 per year—you might be eligible for GIS.

Spouse Allowance

The GIS spouse’s benefit is for spouses of GIS recipients who are 60 to 64 years old, and whose combined family income is $34,704 or less. They can receive up to $1,174.49 from them in the April-June 2021 quarter. The amount will rise by roughly 10 percent as a result of the July indexation of 1.30%.

Survivor Allowance

If your spouse has died and you make less than $25,272 each year, you may be eligible to receive up to $1,400 per month.

Unlike the OAS pension itself, these supplements and allowances are not taxable.

OAS vs. CPP

For seniors in Canada, the Canada Pension Plan (CPP) and Old Age Security (OAS) are two important sources of retirement income. However, they are quite different. CPP is a contributory retirement plan in which you are required to contribute a percentage of your employment earnings. On the other hand, you can qualify for OAS whether or not you have worked before.

CPP payments can start as early as age 60, but the minimum age for OAS payments is 65. The amounts paid and how those amounts are determined are also quite different. CPP payments are based on the length of time and amount contributed to the plan, while OAS pension is taxed and indexed to inflation. Both plans are tax-free after retirement.

Here’s our post on CPP payment dates, including how much CPP you can expect to receive and when.

OAS Payment Dates FAQs

When does OAS start?

The United States assumed OAS pension payments begin at age 65, but you can apply after you’ve turned 64. Spouses and survivors’ allowances are available from the age of 60 to 64.

When do CPP and OAS get deposited into your bank account?

The pension payments are made on the third to last banking day of each month, with CPP and OAS paid into your bank account on the third to last banking date. To ensure that your pension dates are received on time, enroll for direct deposit. For information about when you can expect your CPP and OAS payments in 2022, see above.

When are OAS cheques deposited?

Cheques are issued at the end of the month, and cheque dates or the days on the cheques are identical to those for direct deposit. Depending on your area’s mail service, you may not receive your cheques on schedule.

What’s the maximum OAS pension?

The maximum OAS allowance for the year beginning in July 2021 is $626.49. Your 2020 income must not have exceeded $79,054 to be eligible for this amount.

What’s the maximum OAS income before it’s clawed back?

The OAS benefit starts being clawed back once your income exceeds $79,054 per year. It will be clawed back entirely if you make more than $128,149 per year.

When are T4 slips for CPP and OAS mailed?

Your tax slips will be accessible in My Service Canada Account by February 1. The T4 tax slips will be sent out at the end of February if you don’t have online access and haven’t yet filed your taxes for previous years. If you do not receive your tax slips, contact Service Canada.

How long does it take to receive my OAS payments?

The month after your application is completely processed and approved, you should begin receiving your OAS payments. There are several reasons for this, one of which is the 11-month application window. If you want to receive your OAS pension at age 66, apply a month after you turn 65. 

What’s the maximum income to qualify for GIS?

The highest income to qualify for GIS is $18,984 if you’re single and up to $45,504 if you have a spouse who is not receiving OAS the same year.

Will OAS increase in January 2022?

The OAS pension amounts and supplements will rise in January 2022 as a result of quarterly indexation.

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