The Old Age Security Pension: A Few Answers

The Old Age Security Pension is a monthly benefit granted to most Canadians. To receive it, one must make a request to Human Resources Development Canada. 

To receive the Old Age Security Pension, you must be a Canadian resident and have reached the age of 65. If you live outside of Canada, you can receive the Old Age Security Pension under certain conditions. 

Calculation of the Pension 

You are entitled to a full pension if you have lived in Canada for at least 40 years after reaching the age of 18 years old or if you were born before July 1952 and have lived in Canada for a certain amount of time. Otherwise, you will only be entitled to a pension in proportion with the number of years spent in Canada. 

The maximal amount of the pension is $471.76 per month and the pension is indexed according to the consumer price index. It is possible to have one's pension deposited directly in one's bank account in Canada or the United States thanks to the direct deposit service. 

The Taxation Aspect 

The Old Age Security Pension is fully taxable and does not give the right to the $1,000 deduction for pension income. Pensioners with a personal income of more than $60,806 will have to reimburse some of their pension. 

In the same way as the QPP pension, the Old Age Security Pension cannot be seized in case of insolvency.

Other Aspects 

In addition to the Old Age Security Pension, low income pensioners are entitled to other benefits such as the Guaranteed Income Supplement and Allowance. The maximum amount under the Guaranteed Income Supplement is $560.69 per month.