Navigating your benefits at 65
Reaching age 65 brings with it new opportunities and resources. In Ontario, this means access to a suite of programs from both the federal and provincial governments. These benefits are designed to provide financial stability and support for health and daily living, ensuring that you can enjoy your retirement with greater peace of mind.
Federal programs for seniors
At a federal level, two of the most significant benefits for seniors are the Old Age Security (OAS) pension and the Canada Pension Plan (CPP) retirement pension. While both are critical, they have different eligibility requirements and payment structures.
The Old Age Security (OAS) pension
The Old Age Security pension is a monthly, taxable benefit available to most Canadians aged 65 and older. Unlike the CPP, eligibility for OAS is not based on your employment history or contributions. Instead, it is based on your residency in Canada.
- To receive the full OAS pension, you must have resided in Canada for at least 40 years after the age of 18.
- If you have lived in Canada for less than 40 years but at least 10 years, you may be eligible for a partial pension.
- In most cases, Service Canada automatically enrolls eligible individuals. If you don't receive a letter a month after you turn 64, you may need to apply.
Canada Pension Plan (CPP) retirement pension
The Canada Pension Plan retirement pension is a monthly, taxable benefit that replaces a portion of your income from when you were working. To be eligible, you must be at least 60 years old and have made at least one valid contribution to the CPP. While you can start receiving payments as early as age 60, the standard age is 65. Delaying your pension beyond age 65 can increase your monthly payments, with the maximum benefit reached at age 70. The amount you receive is based on your earnings history and contributions.
Guaranteed Income Supplement (GIS)
Low-income seniors who receive the OAS pension may also be eligible for the Guaranteed Income Supplement (GIS). This non-taxable benefit provides additional financial support and is based on your annual income. Eligibility is automatically reviewed if you file your taxes, but you can also apply separately if needed.
Ontario provincial benefits for seniors
In addition to federal benefits, Ontario residents aged 65 and over can access specific provincial programs that address healthcare and financial needs.
Ontario Drug Benefit (ODB) program
The Ontario Drug Benefit program helps eligible seniors with the cost of prescription medications. Once you turn 65, you are automatically enrolled and receive a confirmation letter. While you pay a small co-payment for each prescription, low-income seniors can apply for the Seniors Co-Payment Program to further reduce or eliminate these costs.
Ontario Seniors Dental Care Program (OSDCP)
For low-income seniors, the Ontario Seniors Dental Care Program offers free, routine dental services. This program covers examinations, preventative care, fillings, and dentures. To qualify, you must meet income requirements and not have access to other dental coverage.
Guaranteed Annual Income System (GAINS)
The Guaranteed Annual Income System (GAINS) is an Ontario-specific, non-taxable payment for low-income seniors who are also receiving OAS and GIS. It is reviewed quarterly to adjust for inflation and is meant to supplement your federal benefits.
Senior tax credits and grants
Ontario offers several tax benefits to help seniors with living costs:
- Seniors' Public Transit Tax Credit: A refundable tax credit for seniors aged 65 and over to help with the cost of public transit.
- Ontario Seniors Care at Home Tax Credit: A refundable tax credit for low- to moderate-income seniors with eligible medical expenses, providing up to 25% back on expenses up to $6,000.
- Senior Homeowners' Property Tax Grant: A grant of up to $500 for low- to moderate-income seniors who own their homes to help with property tax costs.
Comparison of key financial benefits
To better understand how federal and provincial programs work together, here is a comparison of some of the primary financial benefits for Ontario seniors.
| Benefit | Type of Support | Eligibility | Tax Status |
|---|---|---|---|
| Old Age Security (OAS) | Monthly Pension | Canadian resident, 65+ | Taxable |
| Canada Pension Plan (CPP) | Monthly Pension | Contributed to CPP, 60+ | Taxable |
| Guaranteed Income Supplement (GIS) | Income Supplement | Low-income OAS recipients | Non-taxable |
| GAINS (Ontario) | Income Supplement | Low-income GIS recipients | Non-taxable |
Accessing healthcare services
Turning 65 does not change your existing OHIP coverage for essential medical services. However, it does open the door to additional support through the Assistive Devices Program (ADP) for specialized equipment like hearing aids, mobility aids, and respiratory devices. You must apply for ADP with the help of a healthcare professional. For further information and support on Ontario's various senior programs, it is recommended to visit the official Ontario government website.
Taking the next steps
To ensure a smooth transition into retirement, it is important to be proactive. Reviewing your eligibility for federal benefits like OAS and CPP should be done in the months leading up to your 65th birthday. For provincial programs, understanding the specific income thresholds and application procedures will help you maximize your benefits. By utilizing these resources, you can better manage your finances and health in your senior years.
Conclusion Upon turning 65 in Ontario, a network of support becomes available, spanning financial and healthcare benefits from both federal and provincial governments. From the foundations of the Old Age Security and Canada Pension Plan to the targeted relief of the Ontario Drug Benefit and tax credits, these programs form a comprehensive safety net. Taking the time to understand and apply for what you are entitled to is a critical step toward securing a comfortable and healthy retirement.
