Question

Your client, Akshay, has been living in Canada for five years. He is turning 65 this year and is keen to know from you details about the Old Age Security (OAS) Program. What will you tell him?

Answer 1

The Old Age Security (OAS) Program is a social insurance program in Canada that provides income support to individuals who are 65 years and older. Eligibility is based on age and residency requirements, and the benefit amount is determined by the number of years an individual has lived in Canada after the age of 18. OAS benefits are subject to a clawback for higher-income individuals, and there are additional benefits available for low-income individuals.

Step-by-step explanation:

The Old Age Security (OAS) Program is a social insurance program in Canada that provides income support to individuals who are 65 years and older. It is one of the three components of Canada's retirement income system, along with the Canada Pension Plan (CPP) and private savings. Here are the key details about the OAS Program:

1. Eligibility: To receive OAS benefits, individuals must be at least 65 years old and have lived in Canada for at least 10 years since the age of 18.
2. Benefit Amount: The amount of OAS benefits is determined by how long an individual has lived in Canada after the age of 18. The maximum monthly OAS benefit amount for 2021 is $615.37.
3. Income Clawback: OAS benefits are subject to a clawback for individuals with higher incomes. The clawback threshold for 2021 is $79,845, and benefits are fully clawed back at an income of $129,075.
4. Add-On Benefits: Low-income individuals may be eligible for additional benefits, such as the Guaranteed Income Supplement (GIS) and the Allowance.

Akshay can contact Service Canada or visit their website for more information and to apply for OAS benefits.