The Old Age Security Canada pension is one of Canada’s retirement income sources for its ageing citizens. Available for Canadians 65 years old or older, you can receive the benefit if you meet the qualifications.
Knowing when you can expect to receive the payments can be crucial in your financial planning during retirement.
I will discuss the OAS payment dates to help you determine when you receive the pension’s monthly payments in 2020. Additionally, I will give you an overview of the pension to better understand the Old Age Security payment dates.
What is OAS?
The OAS is among the three main retirement income plans in Canada. The other two are the Canada Pension Plan (CPP) and the Employment Pensions Plan or Individual Retirement Savings. Unlike the CPP and Employment Pensions Plan, your OAS does not depend on your employment history in any way.
You need to be a resident in Canada or a Canadian citizen aged above 65 to receive the monthly taxable income. For the CPP, you must retire to begin receiving your pension. You can receive OAS pensions if you are still working or have not worked a day in your life.
If you earn too much income, you can get some or all of your OAS clawed back. Learn how to avoid the OAS clawback here.
OAS Payment Dates
The OAS payment schedule for 2020 is:
- January 29, 2020
- February 26, 2020
- March 27, 2020
- April 28, 2020
- May 27, 2020
- June 26, 2020
- July 29, 2020
- August 27, 2020
- September 28, 2020
- October 28, 2020
- November 26, 2020
- December 22, 2020
The dates for OAS Canada payments are the same as the CPP. Service Canada distributes the payments for both OAS and CPP on the same dates. You can check out my article on the CPP Payment Dates for 2020 here.
How Much OAS Can You Receive?
To help you understand how OAS works, here’s an example:
For Example: Jonathan moved from the US to Canada at 35. He has been living in the country for 30 years by the time he reaches 65. It means he has lived 30 years as an adult in Canada. According to the requirements, Jonathan is eligible to receive 30/40th of the full benefit through the OAS. That is 3/4th of what he would receive if he had been living in Canada for 40 years. For the third quarter of July 2020, Jonathan can receive 3/4th of $613.53 per month. It translates to $460.14 per month.
Before you know about the Old Age Security payment dates, you should know how much you stand to make monthly. The OAS can vary from person to person, depending on how long you have lived in Canada as an adult.
Service Canada updates the maximum monthly amount you can receive based on the Consumer Price Index every quarter in January, April, July, and October. For the third quarter in 2020 (July to September), you can receive a maximum of $613.53 per month in your OAS pension. However, you must have lived at least 40 years in Canada as an adult to qualify for the full amount.
If you have not lived in Canada for 40 years after turning 18, you can still receive partial pension benefits through OAS Canada. Service Canada determines partial pension benefits through 1/40th of the full pension amount for every full year you have lived in Canada since you turned 18.
Are You Eligible for OAS Payments?
You need to qualify for the OAS payments so you can collect them. Here are some of the eligibility requirements for OAS:
- You must be at least 65 years of age.
- If you’re living in Canada, you must be a Canadian citizen or legal resident and have lived in the country for at least ten years since turning 18.
- If you’re living outside Canada, you must have been a Canadian citizen or legal resident the day before you left Canada and resided in Canada for at least 20 years since you turned 18.
- In some cases, you can qualify for OAS as an overseas Canadian in a country with a social security agreement with Canada.
The requirements are more comprehensive, and you can find out more details about eligibility for OAS here.