Federal government benefits at age 65
When you turn 65 in Canada, several key federal programs may contribute to your retirement income. These benefits, administered by Service Canada, include the Canada Pension Plan (CPP), Old Age Security (OAS), and the Guaranteed Income Supplement (GIS). It's important to apply for most of these benefits as they typically do not start automatically.
Canada Pension Plan (CPP)
The CPP is a monthly, taxable benefit for those who have contributed during their working years. While you can receive a reduced pension as early as age 60, age 65 is the standard for receiving your full earned benefit. The amount you receive is based on your contributions and their duration. Deferring your pension past 65 can increase payments, up to a 42% increase at age 70. Starting early results in a permanent reduction of up to 36%. If you work while receiving CPP before age 70, you can still contribute for the Post-Retirement Benefit to increase your pension. Quebec residents are covered by the Quebec Pension Plan (QPP).
Old Age Security (OAS)
The OAS pension is a monthly, taxable benefit for eligible seniors aged 65 or older, based on legal status and residency in Canada after age 18, not work history. To be eligible, you must be 65 or older, a Canadian citizen or legal resident when approved, and have lived in Canada for at least 10 years after age 18 (if living in Canada). High income may result in a clawback via the Pension Recovery Tax. You can delay OAS up to age 70 for a 36% higher monthly payment.
Guaranteed Income Supplement (GIS)
The GIS is a monthly, non-taxable benefit for low-income seniors receiving the OAS pension. Eligibility and payment amounts are based on your previous year's income and are re-evaluated annually. To qualify, you must be 65 or older, receive OAS, be a Canadian resident, and have an annual income below the maximum threshold, which depends on your marital status. Delaying OAS is not beneficial if you qualify for GIS, as you would be ineligible during the deferral period.
Provincial and territorial benefits for Canadian seniors
In addition to federal benefits, provinces and territories offer supplementary programs for seniors, covering housing, healthcare, and daily living costs, potentially increasing total retirement income.
- British Columbia: Offers the BC Seniors Supplement, Shelter Aid for Elderly Renters (SAFER), and the Home Owner Grant for Seniors.
- Alberta: Provides the Alberta Seniors Benefit for low-income seniors and assistance for dental, optical, and special needs.
- Ontario: Has the Guaranteed Annual Income System (GAINS) for low-income seniors and the Ontario Drug Benefit (ODB) program.
- Quebec: The Quebec Pension Plan (QPP) is similar to CPP, with additional provincial grants for municipal tax increases and a Shelter Allowance.
- Saskatchewan: The Seniors Income Plan (SIP) assists low-income seniors beyond OAS and GIS.
- Manitoba: The 55 PLUS Program offers quarterly benefits to lower-income Manitobans over 55; OAS/GIS recipients' benefits are automatically determined.
- Nova Scotia: Offers the Seniors Care Grant for low-income seniors' household, healthcare, and heating costs.
- New Brunswick: The Low-income Seniors' Benefit provides an annual payment to eligible seniors.
Comparison of federal seniors' benefits
| Benefit | Eligibility Age | Basis of Payment | Taxable | Key Condition | Automatic Enrollment |
|---|---|---|---|---|---|
| Canada Pension Plan (CPP) | Starts as early as 60, standard age is 65 | Contributions made throughout working years | Yes | Made at least one contribution to CPP | No (must apply) |
| Old Age Security (OAS) | Starts at age 65 | Residency in Canada after age 18 | Yes | Lived in Canada for 10+ years (20+ if living abroad) | Yes (in most cases) |
| Guaranteed Income Supplement (GIS) | Starts at age 65 | Annual income level | No | Must be receiving OAS and have low income | Yes (if automatically enrolled in OAS) |
How to apply for benefits
While some seniors may be automatically enrolled for OAS and GIS if Service Canada has sufficient information, application is often necessary, especially for CPP. It is advisable to apply at least six months before you want to start receiving payments.
- Create a My Service Canada Account (MSCA): An MSCA facilitates online application for CPP and OAS, provides access to information, and allows you to track your application status.
- Gather required information: Prepare your Social Insurance Number (SIN) and direct deposit information. Details about any time working or living outside Canada are also needed.
- Apply online or by paper: You can apply online through your MSCA. Paper application forms are available for download from the Service Canada website.
- Inform Service Canada of income changes: For GIS, eligibility is automatically recalculated based on your annual income tax return. Filing your taxes each year is crucial for continued GIS benefits.
Conclusion
Turning 65 in Canada provides access to significant financial resources. Your entitlements combine federal benefits like CPP, OAS, and GIS, with provincial and territorial programs offering additional support. Understanding the eligibility and application process for each is vital for a stable retirement income. Proactive application and awareness of provincial programs can help maximize your financial security in your senior years.
For more detailed information, consult the official Government of Canada website on public pensions.
