Upon turning 65, Canadians are eligible for a variety of government benefits designed to support them in retirement. These include federal programs like Old Age Security (OAS), the Canada Pension Plan (CPP), and the Guaranteed Income Supplement (GIS), as well as various provincial programs and tax credits.
Old Age Security (OAS) and Related Benefits
The Old Age Security (OAS) pension is a monthly payment for most Canadians aged 65 and older who meet residency requirements. Unlike the Canada Pension Plan, OAS eligibility is not based on employment history.
OAS residency requirements
To qualify for a full OAS pension, you generally need to have lived in Canada for at least 40 years after age 18. A partial pension is available for those with at least 10 years of residency in Canada after age 18 while residing in the country. If you live outside Canada, you typically require at least 20 years of residency after age 18.
The Guaranteed Income Supplement (GIS)
Seniors receiving OAS with low incomes may be eligible for the Guaranteed Income Supplement (GIS). This non-taxable monthly benefit supplements your OAS payment. The amount depends on your income, and for couples, on your combined income. Filing your annual tax return is necessary for renewing or confirming GIS eligibility.
Canada Pension Plan (CPP) Retirement Pension
The CPP is a monthly, taxable benefit that replaces part of your income in retirement. It's a contributory plan based on your earnings and contributions during your working years. You can start CPP as early as age 60 with a reduced amount or delay until age 70 for an increased amount. Residents of Quebec are covered by the Quebec Pension Plan (QPP).
CPP post-retirement benefits
If you receive CPP but are still working and under 70, you can contribute to the plan to earn a Post-Retirement Benefit (PRB), increasing your pension income.
Key Federal and Provincial Programs for Seniors (Comparison Table)
| Feature | Old Age Security (OAS) | Canada Pension Plan (CPP) | Provincial/Territorial Programs |
|---|---|---|---|
| Funding Source | General federal tax revenues | Contributions by employees, employers, and self-employed | Provincial/territorial government revenues |
| Eligibility Basis | Age (65+) and Canadian residency | Contributory; based on lifetime earnings and contributions | Varies by program and province (e.g., income, age, property ownership) |
| Key Benefit | Modest monthly pension | Earnings-related monthly pension | Varies widely (e.g., property tax relief, rent subsidies, health benefits) |
| Application Process | Automatic enrollment is common; manual application required for some | Application required, generally six months in advance | Varies by program; some are automatic via tax filing, others require direct application |
| Income Testing | Yes, subject to OAS recovery tax if income exceeds a certain threshold | No, it is not an income-tested benefit | Yes, many programs are specifically for low- to moderate-income seniors |
Provincial and Territorial Programs
Provinces and territories provide various programs to support seniors, often those with low incomes. These can include financial aid, health coverage, and housing assistance.
Examples of provincial support
Provincial support programs include housing assistance such as rent subsidies like British Columbia's SAFER, rent-geared-to-income options, and property tax relief. Health and wellness programs may help with prescription drugs, dental care, and other medical costs, while some provinces offer tax credits for home care. Transportation subsidies are also available in some regions.
Federal Tax Credits and Deductions for Seniors
Canadian seniors may be eligible for specific tax credits that can reduce their tax burden, including:
- Age amount: A non-refundable credit for individuals aged 65 and older, reduced as income rises.
- Pension income amount: A non-refundable credit on up to $2,000 of eligible pension income.
- Pension income splitting: Allows spouses or common-law partners to share up to 50% of eligible pension income.
- Home Accessibility Tax Credit (HATC): A non-refundable credit for home renovations improving accessibility and safety for seniors or people with disabilities.
How to Apply and Get Information
Application processes vary. OAS and GIS enrollment is often automatic, but manual application may be needed if you aren't notified. You must apply to Service Canada for CPP. Many provincial benefits are linked to filing your annual tax return, while others require separate applications. The Government of Canada website is a reliable source for federal information, and provincial sites detail local programs.
Conclusion
Turning 65 in Canada brings eligibility for federal benefits like OAS and CPP, income-tested supplements like GIS, and diverse provincial programs. Understanding these benefits, applying when eligible, and filing annual tax returns are key to maximizing retirement income and accessing available support.
