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 Old Age Security (OAS)
OAS is a federal government program that provides a basic amount of retirement income to all individuals who meet certain residency requirements. The amount of OAS that you receive is not dependent on your past employment or salary. Any benefits paid by the OAS are taxable both federally and provincially.
Who is eligible to receive OAS?
To receive OAS you must be:
• a Canadian citizen or legal resident of Canada,
• at least 65 years of age and,
• lived in Canada for a minimum period of 10 years after reaching the age of 18
How much can I expect from OAS?
OAS pensions are adjusted for inflation quarterly.
In order to qualify for the maximum OAS pension, you must have lived in Canada (after reaching age 18) for at least 40 years.
If you have lived in Canada for more than 10 years but less than 40 years, you may be eligible for a partial pension.
Planning for OAS – Avoiding Clawback
It is important to plan properly to ensure if possible that one’s OAS payment is not clawed back. There are many investment strategies that can be implemented to help reduce one’s income to ensure if possible that OAS is not clawed back. Investment products offered at Guaranteedinvestments.com may be able to help you.
Guaranteedinvestments.com offers individuals with access to a wide variety of investment products including annuities, guaranteed investment funds, guaranteed minimum withdrawal benefit plans, guaranteed lifetime withdrawal benefit plans and many other types of investments that have the potential to reduce your taxable income levels, thereby helping with OAS clawbacks.
 What is the OAS Clawback and when does it apply?
OAS clawback affects seniors who have high income levels. OAS clawback means that some of an individual’s old age security will be clawed back if an individual’s annual income exceeds a certain dollar amount
The OAS clawback requires the repayment of OAS benefits by high-income earners. For 2011, the threshold at which the OAS clawback starts is $67,668. If your net income (including OAS benefits) exceeds the threshold ($67,668), 15% of the amount of income above the threshold is deducted from the basic pension.
The Old Age Security (OAS) in Canada is a pension available to most Canadians aged 65 or older.
In order to receive the OAS benefits, individuals must apply for their old age security pension. A variety of factors determine whether an individual is eligible for Old Age Security (OAS). In order to determine whether one is eligible for OAS, an individual’s age, number of years lived in Canada, and an individual’s legal status are considered for the eligibility criteria.
Individuals should also start reviewing their wills and estate plans, their investment portfolios, their RRSPs and a wide variety of other related financial matters.
Investments at this stage in life for most would probably consist of conservative type investments including GICs, annuities, guaranteed investment funds, guaranteed minimum withdrawal benefit plans, guaranteed lifetime withdrawal benefit plans and other types of similar conservative type investments.
For all the eligibility requirements please visit the government’s website as rules and eligibility requirements may change.
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