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OAS Increase 2024 – How much will OAS increase?

Written by The Anand Market

Updated on:

The Canadian government manages several important retirement programs, including Old Age Security. In 2024, the maximum OAS clawback will likely increase from $86,912 to $90,997. This base is $168,600 for profits in 2024.

Increase in OAS 2024

Old Age Security is one of the main retirement programs in Canada. If a person meets the residency requirements, they can begin receiving OAS benefits in 2023, after they turn 65.

OAS for 2024 is a popular retirement pension in Canada, providing retirement income to millions of Canadians in the form of earnings, employer-provided pensions and personal savings. Elderly people were supposed to receive a basic income under this program.

The amount will increase from CAD 66,600 to CAD 68,500 on January 1, 2024. The SV is tracked by the CPI and the Consumer Price Index is used to calculate inflation.

From CAD 86,912 to CAD 90,997, the OAS clawback limit has been increased. 11.9% will be the employee pay rate and 5.95% will be the employer pay rate.

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OAS payment dates for 2024

The OAS payment for January 2024 will be sent by January 28, 2024. The last week of each month, the government credits the funds. Previous trends indicated that payments were made to beneficiaries on the 27th of each month.

Recipients will receive an OAS payment increase of CAD 68,500 in January 2024.

The benefit will be instantly deposited into recipients’ bank accounts, and the OAS clawback amount will also increase.

Month 2024Payment date
January January 28, 2024
FEBRUARYFebruary 27, 2024
MarchMarch 26, 2024
AprilApril 26, 2024
Can May 29, 2024
June June 26, 2024
JulyJuly 29, 2024
August August 28, 2024
September September 25, 2024
October October 29, 2024
November November 27, 2024
December December 20, 2024

How does Old Age Security work in Canada?

At age 18, Old Age Security (OAS) recipients are eligible for a full or partial pension, which is determined based on their age, income and length of stay in Canada.

A minimum of 40 years of residence in Canada is required for a full pension, while 10 or 20 years are necessary for a half pension. Annual reviews and taxes apply to OAS benefits.

A 10% increase in monthly benefits has been provided to OAS recipients over the age of 75 since July 2022. The maximum monthly payment for those aged 65 to 74 was $707.68, and for those aged 75 and over, it was $778.45, from October to December 2023.

increase in oas

Benefits of the OAS pension

The 2024 OAS Pension benefits are listed below.

  • The value of recipient payments ranges from CAD 66,600 to CAD 68,500.
  • Through the retirement plan, one can achieve financial stability, which helps in sustaining one’s needs.
  • When a person reaches the age of 75, their pension amount is increased.
  • The government conducts annual reviews of OAS payment amounts to account for inflation.

Eligibility for the OAS pension

Individuals must meet certain conditions to be eligible for the old age security pension. These requirements differ slightly depending on whether you live in Canada or elsewhere.

  • A minimum age of 65 is required.
  • You must have lived in Canada for at least ten years since the age of eighteen and be a legal resident at the time of your pension application.
  • The OAS pension is available to permanent residents and citizens of Canada.
  • After turning 18, you had to have resided in Canada for at least 20 years.
  • Citizenship or previous residence: Under international social security agreements, certain residents and citizens of Canada may be eligible.
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When and how will I be registered for Old Age Security?

Individuals sometimes receive a letter from OAS stating that they are eligible and that benefits will begin at age 65. It is possible to complete an application if you think you are eligible but have not received a letter.

You can obtain the application online or by telephone at 1-800-277-9914. A Service Canada office may also be able to provide you with one. Instead, if you already have a My Service Canada Account (MSCA), you can apply online.

You can create an account if you do not already have one with MSCA. After completing your registration, you will receive a personal access code. You can complete your application with the help of a government guide. After completing the application, mail it to Service Canada.

Go to the bscnursing homepage for relevant content.