In this article, you get to know about OAS Payment Dates 2022, how much will CPP and OAS increase in 2022 so you can receive or plan ahead. The Old Age Security (OAS) pension is a monthly payment you can get if you are 65 and older. In some cases, Service Canada will be able to automatically enroll you for the OAS pension. In other cases, you will have to apply for the Old Age Security pension. Service Canada will inform you if you have been automatically enrolled. In most cases, you do not have to apply to get this benefit.
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.
Here are the OAS payment dates for 2022:
|1.||January 27, 2022|
|2.||February 24, 2022|
|3.||March 29, 2022|
|4.||April 27, 2022|
|5||May 27, 2022|
|6.||June 28, 2022|
|7.||July 27, 2022|
|8.||August 29, 2022|
|9.||September 27, 2022|
|10.||October 27, 2022|
|11.||November 28, 2022|
|12.||December 21, 2022|
OAS 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 a 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.
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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 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 months past 65 OAS Increase
66 12 months 7.2%
67 24 months 14.4%
68 36 months 21.6%
69 48 months 28.8%
70 60 months 36%
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 three 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 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 ($642.25/month). 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 35 years in Canada after your 18th birthday, for example, you’re eligible to receive 87.5 percent of the maximum monthly OAS pension—35 out of 40 years, which means you’ll receive $561.97/month. If you’ve spent 40 or more 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 will receive. When you apply, they will send you a letter telling you how much to anticipate.
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. For the period beginning July 2021, the maximum income to receive an OAS pension is $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?
Because the Old Age Security Pension is income, it’s taxable. 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 a NR4 OAS slip if you’re a not a resident of Canada. You should receive the forms every year on or before the end of February.
If you don’t want to wait until tax time to pay your taxes, you can ask that they be deducted from your OAS payments. You can also request the forms through your My Service Canada Account or send Form ISP3520CPP to a nearby tax office.
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 $770.70 per year in OAS ($642.25 x 110% x 12). This marks the first meaningful raise to OAS benefits since 1973, outside of quarterly indexation.
The monthly OAS pension payments are adjusted for inflation. The indexation is done every four months, and the increases are generally 1.30% or more annually.
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. Find out more about OAS for Canadians who live outside of Canada here.
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 $959.26. 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.
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 $1,219.68 from them in the January-March 2022 quarter. The amount will rise by roughly 10 percent as a result of the April indexation of 1.30%.
If your spouse has died and you make less than $25,272 each year, you may be eligible to receive up to $1,453.93 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.
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.
What’s the maximum OAS pension?
The maximum OAS allowance for the year beginning in 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 are T4 slips for CPP and OAS mailed?
Tax slips are accessible in your My Service Canada Account as of February 1. The T4 tax slips will be sent out by 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. 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.
Did OAS increase in January 2022?
The OAS pension amounts and supplements rose 1.1% in January 2022 as a result of quarterly indexation. Additionally, the OAS pension will be permanently increased by 10% for people who are 75 years old or older from July 2022.