Living in Canada for 40+ years can unlock significant Old Age Security (OAS) benefits, but how much will you get? Understanding the factors that determine your OAS eligibility and payment amount is key.
OAS is a government pension program designed to help Canadians cover living expenses during retirement. It’s available even if you’ve moved outside of Canada after retirement, provided you’ve met the eligibility criteria.
But what exactly determines how much OAS you’ll receive after living in Canada for four decades?
Let’s break it down and understand the factors that influence your OAS payments.
Residency
Residency plays a crucial role in determining OAS eligibility. To qualify for OAS, you must have lived in Canada for at least 10 years after turning 18.
However, to receive full benefits, you’ll need at least 40 years of residency after turning 18. If you’ve been in the country for over 40 years, you’re likely entitled to the full OAS pension.
Even if you retire abroad, you can still receive your OAS payments as long as you lived in Canada for 20 years after the age of 18. This flexibility makes OAS one of the more versatile pension plans compared to other retirement schemes.
Age
The standard age to start receiving OAS payments is 65. However, if you decide to delay receiving OAS, you can increase your payments by 0.6% per month (up to 36% in total if you delay it until age 70).
On the flip side, if you start collecting OAS earlier, your payments will be lower. For most people, waiting to collect OAS can mean significantly higher monthly payments, especially after 40+ years in the country.
Legal Status
To qualify for OAS, you must either be a Canadian citizen or a legal resident. If you are a non-resident but meet the residency requirements, you can still apply and receive your pension.
Ensuring that your legal status is up-to-date and verified with Service Canada is essential for hassle-free approval.
How Much OAS Can You Receive?
Now, the big question: how much will you receive in OAS payments after living in Canada for 40+ years? In 2024, the maximum monthly OAS payment for those aged 65 to 74 is around $685.50.
This amount increases slightly after age 75, reaching approximately $754.05 per month.
Here’s a snapshot of the monthly OAS payments:
| Age | Monthly OAS Payment |
|---|---|
| 65 – 74 | $685.50 |
| 75 and above | $754.05 |
For individuals who’ve lived in Canada for less than 40 years, the payments will be prorated. For instance, if you’ve lived in Canada for 20 years, you’ll receive 50% of the full OAS amount.
How to Apply for OAS?
Applying for OAS is a straightforward process, but you must ensure that your documents are in order. Here’s a step-by-step guide:
Step 1: Log in to the My Service Canada Account portal.
Step 2: Fill out the application form, providing accurate details about your residency, age, and legal status.
Step 3: Attach the necessary documents such as proof of residency and age.
Step 4: Submit the application and review all details carefully to avoid errors.
Step 5: Once submitted, you can check the status of your application through the My Service Canada portal.
Applications are typically processed within a few weeks, and you’ll be notified if any issues arise.
OAS Benefits
OAS offers several advantages compared to other pension plans. It’s a reliable source of income that doesn’t require contributions during your working years, unlike the Canada Pension Plan (CPP).
Moreover, OAS payments are indexed to inflation, ensuring that your purchasing power remains stable as costs rise.
A major benefit of OAS is that you can still qualify for payments even if you decide to retire abroad. As long as you meet the 20-year residency requirement, you can receive your payments while living in another country.
This flexibility is especially valuable for retirees looking to live in lower-cost regions while still benefiting from Canadian pension schemes.
Retirement Planning
If you’ve lived in Canada for over 40 years, it’s wise to include OAS in your retirement planning. While the payments may not cover all expenses, they provide a solid foundation for managing monthly costs like groceries and utilities.
Combining OAS with other savings and investment options ensures a stable and comfortable retirement.
Don’t wait too long to apply for OAS. Start the process after your 64th birthday to avoid missing out on payments. With proper planning, OAS can be a key part of your financial strategy for the future.
In summary, the amount of OAS you’ll receive after living in Canada for 40+ years depends on factors such as age, residency, and legal status. By understanding the application process and ensuring that you meet the criteria, you can maximize your pension and enjoy a worry-free retirement.
FAQs
What is the minimum residency requirement for OAS?
You need at least 10 years of residency in Canada to qualify for OAS.
Can I receive OAS if I live abroad?
Yes, if you’ve lived in Canada for at least 20 years after turning 18.
How much OAS can I receive at age 65?
At age 65, you can receive up to $685.50 per month.
Does OAS payment increase after age 75?
Yes, the monthly payment increases to $754.05 after age 75.
Can I apply for OAS before age 65?
No, you can only start receiving OAS payments at or after age 65.
