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 or cheque. To learn about the specific OAS payment dates, how much you can expect to receive, and whether you’re eligible for any additional benefits, read on below.
OAS Payment Dates Schedule 2022
The OAS pension, Guaranteed Income Supplements, and other supplements and allowances are all paid on the same day. That means that OAS payments coincide with Canada Pension Plan (CPP) payments, so if you’re receiving both, you’ll get them on the same day.
The OAS payment dates for 2022 are:
- January 27, 2022
- February 24, 2022
- March 29, 2022
- April 27, 2022
- May 27, 2022
- June 28, 2022
- July 27, 2022
- August 29, 2022
- September 27, 2022
- October 27, 2022
- November 28, 2022
- December 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.
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)?
Old Age Security (OAS) is one of the three main retirement income plans in Canada, with the other two being the Canada Pension Plan (CPP) and the Employment Pensions Plan (or Individual Retirement Savings).
OAS beneficiaries 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 who 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 the 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 so that you’ll receive larger payments later on.
How To Apply For OAS Retroactively
You can retroactively apply for OAS and be paid for up to 12 months of previous payments.
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 months past 65||OAS Increase|
If your income is high now and you believe it will be lower in the future, delaying OAS might be a good idea.
Still, it’s a good idea to talk with your financial advisor and consider all of the ramifications before deciding to defer your OAS payments.
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, including 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.
Old Age Pension Dates 2022
The monthly OAS pension is adjusted for inflation every 3 months. You may receive up to $642.25 per month as an OAS pension starting January 2022.
However, how much OAS you will get is determined by a) how long you lived in Canada after age 18, and b) your annual income from the previous year.
If you’ve lived in Canada for at least 40 years after your 18th birthday, you’ll be eligible for a full OAS pension of $642.25/month. If you’ve lived in Canada for a shorter period after your 18th birthday, a partial benefit will be paid.
Read the section below on the OAS clawback to discover how your income may impact 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.
For example, if you spent 35 years in Canada after your 18th birthday, you’re eligible to receive 87.5% of the maximum monthly OAS pension (35 out of 40 years = 87.5%) which means you’ll receive $561.97/month.
If you spent 40+ years in Canada after the age of 18, you’re eligible to earn the maximum amount.
If your income exceeds a preset threshold, the pension is reduced by the OAS monthly recovery tax, also known as the OAS clawback. This is a simple approach to work out how much money you’ll receive.
When you apply for OAS, the government will send you a letter telling you how much you can expect to receive.
OAS Clawback 2022
The OAS clawback threshold for the period of July 2021 to June 2022 is $79,054, measured in 2020 income. Any amount earned above this point is subject to an additional 15% reduction in OAS pension until the OAS completely disappears.
This means that for the period beginning July 2021, OAS will be completely clawed back at an annual income of $128,149.
OAS benefits are paid for a 12-month period, starting in July and ending the following June. The income from the previous year is also used to determine how much you will receive, as is the case with some 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. That’s 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 and submit it to the nearest tax office listed on the form.
Is OAS Taxable?
Yes, OAS is viewed as taxable income, which means that all of your monthly OAS payments are added to your income at the end of the year and taxed at your marginal tax rate.
By the end of February each year, you’ll receive a T4A OAS tax slip (or a NR4 OAS tax slip if you’re a not a Canadian resident).
If you prefer to have your OAS taxes deducted directly from your payments, you can request this through your My Service Canada Account or by sending Form ISP3520CPP to your nearest tax office.
OAS Increases In 2022 (January, April)
Due to an increase in the Consumer Price Index (CPI), OAS benefits increased by 1.1% in January 2022 and will increase by another 1.0% in April 2022.
The OAS pension will also 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 $770.70 per year in OAS ($642.25 x 110% x 12).
This increase marks the first meaningful raise to OAS benefits since 1973, outside of quarterly indexation.
OAS pension payments are also adjusted upwards for inflation. The indexation is done every four months, and the increases are generally 1.30% or more annually.
In the rare case that the cost of living decreases, OAS payments will not be reduced.
OAS For People 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. You can learn more about OAS for Canadians living abroad here.
Seniors who meet the low-income requirements may also qualify for several supplements. These supplements are determined by the recipients’ income, and unlike the OAS pension itself, these supplements are not taxable.
#1 Guaranteed Income Supplement (GIS)
The Guaranteed Income Supplement is for OAS recipients with lower incomes.
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.
The maximum monthly Guaranteed Income Supplement (GIS) payment from April to June 2022 is $968.86. This applies if you’re single, divorced, or widowed.
If your spouse or common-law partner also receives the Guaranteed Income Supplement (GIS) or the Old Age Security pension (OAS), the maximum monthly GIS payment is $583.20.
#2 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. Spouses can receive up to $1,219.68 from them in the January-March 2022 quarter.
#3 Survivor Allowance
If your spouse has died and you make less than $25,272 annually, you may be eligible to receive up to $1,453.93 per month.
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, the two of them are actually 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 you don’t need to contribute to OAS. Your current income impacts your OAS earnings in a major way, while it only has a negligible impact on CPP, since that’s calculated over 39 years.
OAS Payment Dates FAQs
When Does OAS Get Deposited?
OAS (and CPP) payments are made via direct deposit on the third-to-last business day of each month.
How Much Is OAS In 2022?
The maximum OAS payment in 2022 is $642.25. If you defer your OAS payments beyond age 65, your benefits increase by 0.6% per month up to a maximum increase of 36% after 60 months (upon turning 70).
What’s the maximum OAS pension?
The maximum OAS pension for the year beginning July 2022 is $642.25. Your 2021 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 will seniors receive their $300 in 2022?
Seniors will receive their $300 on April 19, 2022. If you are a senior citizen already receiving OAS, you do not have to apply for this one-time $300 payment: it will be paid out to you automatically via direct deposit.
When are T4 slips for CPP and OAS mailed?
T4 tax slips are generally accessible in your My Service Canada account as of February 1. If you prefer paper tax slips, they’re sent out by the end of February each year.
If you do not receive your tax slips in the mail by the end of February (or don’t have access to them in your My Service Canada account), 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.
Keep in mind that there is an 11-month application window, which means that if you want to receive your OAS pension at age 66, you should apply one 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.
How much will CPP and OAS increase in 2022?
OAS payments have been increased by 1.0% for the April-June quarter of 2022.
Old Age Security is also being permanently increased by 10% for seniors 75 and older starting in July 2022. This means eligible seniors will receive an additional $770.70 per year in OAS ($642.25 x 110% x 12).
Did OAS increase in January 2022?
The OAS pension amounts and supplements rose 1.1% in January 2022 as a result of quarterly indexation. It’s being raised by another 1.0% for the second quarter (April to June 2022).
Are Canadian seniors getting extra money in 2022?
Yes, Canadian seniors are getting extra money in 2022, because OAS payments have already increased by 1.1% in the first quarter, 1.0% in the second quarter, and are on track to increase further in the third and fourth quarters of 2022.