A Complete Guide To Old Age Security (OAS)

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  • Опубліковано 24 гру 2024

КОМЕНТАРІ • 101

  • @marylongschimanke9815
    @marylongschimanke9815 4 місяці тому +2

    My husband has worked his entire life and at 65 he got a letter asking him if he wanted to get CPP and OAS. He went on-line and deferred it. He's going to be 70 in six months. High-income earner. Thanks for the video, we know now that he should not apply for OAS. Thanks.

  • @andrewf2225
    @andrewf2225 8 місяців тому +20

    Retired at 58, rolling RSP into RIF. Going to start pulling CPP at 63, then OAS at 65. Life is short, we need to make sure we live it. No guarantees and you can't take it with you. If you're debt free, you deserve to be able to live and enjoy life, trust me, you need less than you realize.

    • @richardmichael59
      @richardmichael59 2 місяці тому

      Everyone’s situation is different.
      What works for you may not work for many others.

  • @ronwiebe4816
    @ronwiebe4816 8 місяців тому +3

    Am I ever glad you and your team (Paralleled Wealth) are working on optimizing this for me - Your team explains it so well in even more detail than you videos. Getting this right for your retirement can never start too soon.

  • @pilotgirl5953
    @pilotgirl5953 8 місяців тому +3

    I’m a high income earner received a notice and immediately delayed receiving it until later. I didn’t realize that it’s based on previous years income. My birthday is in July so I’ll just wait until I’m retired and take after July of the following year. Thx for info. Very helpful.

  • @Leftatalbuquerque
    @Leftatalbuquerque 8 місяців тому +9

    My father just died as he reached 80 due to cancer of the appendix. After a lifetime of being self-employed as a farmer and a small business owner who had yet to retire, this is what happened. He and Mom had taken their OAS when they were first eligible. Sometimes a bird in the hand is worth two in the bush.

    • @ddavidson5
      @ddavidson5 8 місяців тому +6

      If we knew the day we would die it sure would make retirement planning a lot easier. Personally my wife and I deferred both CPP & OAS to age 70 (started last year) but I looked at it more as "long life insurance" rather than as a way to squeeze the most possible CPP/OAS dollars out of the government. By deferring, no matter what happens, we'll have the maximum, inflation indexed, monthly "guaranteed for life" cashflow and, unlike our savings, it will never run out as long as we are alive. For me the whole "break even point" discussion is a red herring. It's like trying to figure out what the break even point is when you are buying house insurance or being upset if your house doesn't burn down and you "wasted" all that money on insurance. It's a pointless exercise. If you live a long time then great and your income was guaranteed plus you didn't have to manage it into your 90s. On the other hand if you die early is how much you got from the government really going to matter to you?

  • @heatherbee8848
    @heatherbee8848 8 місяців тому +4

    This is a great video. I just wanted to add about the claw back. Just so everyone is aware when you're above the threshold and you have part or all of your OAS clawed back you're not actually losing it. The amount clawed back is immediately applied to your tax bill. It also doesn't have any impact on your income because the t4a OAS that you receive shows income with an immediate deduction. So there are advantages to receiving OAS even if part of it is called back. I know people who are having 50% of their OAS clawed back and being immediately sent to the CRA for their tax bill and they take the other 50% and put it in a tfsa

    • @satinderbank4607
      @satinderbank4607 8 місяців тому +2

      Hi, So if I understand it correctly the clawed back amount (that you did not receive) goes on to reduce your overall Tax Owing ?

  • @mary-jojohnston4756
    @mary-jojohnston4756 8 місяців тому +2

    So much useful information! Thank you!

  • @rustykatt3870
    @rustykatt3870 8 місяців тому +1

    Thanks! Lots of useful information! Good luck to us all 😊.

  • @GeorgeW.-zk8ry
    @GeorgeW.-zk8ry 29 днів тому

    Thank you this was very helpful

  • @mattwaters6987
    @mattwaters6987 3 місяці тому

    Thanks for this video.

  • @DaveG-rs3xp
    @DaveG-rs3xp 8 місяців тому

    My understanding is that if you have less than forty years in Canada after the age of 18 in most cases only the years in Canada are you used to calculate the OAS amount. Years living in a country with a tax and pension agreement with Canada (Australia, Greece, UK and others) the foreign residence years only count towards eligibility.

  • @CentauriCentauri
    @CentauriCentauri 8 місяців тому +6

    Thanks Adam for another great video. Can you do a video about CPP timing if someone wants to retire very early like age 55? I find it confusing with that 10 year non contributory years if you still hold off till 65 if you can afford to or is it more moola in your pocket if you just start CPP at 60?

    • @heatherbee8848
      @heatherbee8848 8 місяців тому

      The earliest you can receive your CPP retirement benefit is at the age of 60 plus one month.

    • @heatherbee8848
      @heatherbee8848 8 місяців тому +2

      You lose .6% per month for every month before the age of 65+1 month and gain .7% per month for every month you defer it past 65 +1 month, maxing out at 70+1 month. On the other hand, if you think about the math, deferring $1,000 per month for 5 years totals $60,000. That's an awful lot of your $ to leave on the table.

    • @DoneByD
      @DoneByD 8 місяців тому

      @@heatherbee8848 just for clarification it is 0.6%/mth or 7.2% per year penalty for taking early ...

    • @heatherbee8848
      @heatherbee8848 8 місяців тому

      @@DoneByD At the age of 65+1 month you're at 100%. Since you're not eligible for OAS until you're 65+1 month there is no penalty for taking it earlier since you can't take it before that. Every month you defer it, you get a .6% per month, which maxes out at the age of 70 plus one month. Which means if you defer it for maximum amount...at 70+1 month you'll get 36% over your 100%.

    • @heatherbee8848
      @heatherbee8848 8 місяців тому

      @@DoneByD typo. my bad.

  • @MrMr-pz1qi
    @MrMr-pz1qi 8 місяців тому

    Thank you for sharing this valuable information.

  • @josepinedo9282
    @josepinedo9282 3 місяці тому

    Hi Adam . Can you clarify this for me, please.
    When the time in Canada start to count for OAS:
    1- From the day that you land at the airport?
    2- From the day that you become Permanent Resident?
    3- From the day that you start paying taxes?
    4-From the day that you become Canadian citizen?
    3- From the day that you start paying taxes

    • @ParallelWealth
      @ParallelWealth  3 місяці тому

      #2 - when you become a permanent resident. This is based on what they have on their website. You can always confirm with Service Canada as well

    • @josepinedo9282
      @josepinedo9282 3 місяці тому

      Thanks Adam!

  • @huib1965
    @huib1965 8 місяців тому +1

    The ten years resident limit might be waived if there is a social security agreement with the country you lived before or after you reside in Canada.

  • @PaulBawby
    @PaulBawby 8 місяців тому +1

    Very useful information, thank you very much for sharing this content 🙂

  • @wesvermey3377
    @wesvermey3377 8 місяців тому +1

    Submitted online to defer OAS and they still started it automatically anyways. I had to send them a letter and the cheques to correct their mistake. Much patience required when dealing with them.

    • @S.M.214
      @S.M.214 5 місяців тому

      Service Canada is a misnomer. They are terribly backlogged and that creates a doubling or tripling of the work. Took me three months to get it stopped and I delayed it originally.

  • @SJ-jd9ys
    @SJ-jd9ys 8 місяців тому +1

    Excellent info. Is it possible to defer collecting until age 71 for example? Or will it auto start at 70 since I deferred it at 65?

    • @ParallelWealth
      @ParallelWealth  8 місяців тому +1

      You could, but no point. 70 is the latest to start and get a benefit for. Anything past 70 is lost money!

  • @4scoopable
    @4scoopable 8 місяців тому +9

    When I was 64 Service Canada notified me that my OAS would start when I turned unless I deferred it. I told them I wanted to defer but they started to send me OAS cheques anyway as soon as I turned 65. I doesn't sound like they have a consistent approach.

    • @PeterVanEck-s8p
      @PeterVanEck-s8p 8 місяців тому

      Same thing happened to me. The cra agent could not explain. I had received it more than 6 months before I was able to talk to them and decided that I would continue receiving it. To much of a hazzel to reverse.

    • @bl9531
      @bl9531 8 місяців тому +1

      Communication with the federal government is almost impossible

    • @michelleb430
      @michelleb430 8 місяців тому +1

      ​@@PeterVanEck-s8pit is not the cra who takes care of oas

    • @heatherbee8848
      @heatherbee8848 8 місяців тому

      If you want to defer your OAS, you must send a letter with the date your name your social insurance number and your signature. Just telling them over the phone won't defer it. They need your signature. You can also defer it through your online My Service Canada acct.

    • @reno5948
      @reno5948 8 місяців тому

      You could have notified Service Canada to stop it, after you received first payment. Perhaps, you did. Also, always communicate in writing or online so you have a record, rather than a phone call.

  • @leckmanj
    @leckmanj 8 місяців тому +1

    Very informative video, thanks..a couple of questions: I just did my taxes and the Net Income line is 23600, not 23400, is that correct? also, my wife and I do income splitting..so is my net income after or before the income splitting? Also, when I looked at the Service Canada website, if I understood it correctly, the clawback, based on last year's Net Income, is taken off before you get your OAS monthly payment, is that correct? thank you

  • @zeekay3383
    @zeekay3383 8 місяців тому

    For an immigrant which date is used as the start of residency. I did my first landing in Canada 2 years before I moved here for good. My landing papers show the date of my first landing but my tax returns started 2 years after that. I have been living in Canada for over 20 years now.

  • @storytimewithunclekumaran5004
    @storytimewithunclekumaran5004 8 місяців тому +8

    Can you do a video on how O.A.S. combines with G.I.S. please for low income people.

  • @brassj67
    @brassj67 8 місяців тому +2

    I moved to Canada when I was 40 from the UK so I will have 24 full years when I am 65. By delaying until I am 70, not only does the payment increase by 0.6% per month or 7.2% per year, but also I will have 29 full years so there will be an additional 12.5%. That's the difference between 36% increase and 48.5% increase with zero chance of claw back for 5 years.

    • @DoneByD
      @DoneByD 8 місяців тому +1

      Not sure this is correct - I believe the residency years is determined by the years in Canada or a country in which Canada has an agreement for ages between 18 & 65. You don't get additional residence years after age 65 but your benefit can increase by deferring your OAS start date beyond age 65.
      I think you should confirm your assumption to ensure it is correct.

  • @MightyRostam
    @MightyRostam 8 місяців тому +1

    Very useful video, Adam. Thank you. How do you let Service Canada know that you DON"T want to start your OAS? Is it done through one's account with Service Canada?

    • @ParallelWealth
      @ParallelWealth  8 місяців тому +3

      Yes

    • @MightyRostam
      @MightyRostam 8 місяців тому +1

      @@ParallelWealth Thank you, Adam.

    • @heatherbee8848
      @heatherbee8848 8 місяців тому +1

      Like Adam said, if you're automatically enrolled you need to notify Service Canada through your online My Servvice Canada account that you'd like to defer it, or send a letter with your SIN, name DOB and wet signature to your closest OAS processing centre. To find out where that is, call the OAS toll free number.

    • @MightyRostam
      @MightyRostam 8 місяців тому +1

      @@heatherbee8848 Thank you so much for the information🙂

  • @williamwallace5899
    @williamwallace5899 8 місяців тому

    Hi Adam. Thank you for the wonderfully informative videos. They have been very helpful. I'm wondering if you know about and, would possibly consider doing a video about, military veterans who get a portion of the military pension clawed back when the start collecting their CPP? I will be faced with this scenario soon. Thanks and keep up the great work!

    • @GT-tm1ft
      @GT-tm1ft 8 місяців тому +1

      It's your bridge benefit that stops, not a clawback in pension. I work for a specialized part of the federal government, and our pension has a CPP bridge benefit from time of "retirement " until age 65. Then the bridge stops, so it looks like a reduction in pension, but it's not. Call your pension centre to get clarification, since pensions vary slightly between different entities within the federal government.

    • @williamwallace5899
      @williamwallace5899 7 місяців тому

      @@GT-tm1ft Thank you.

    • @GT-tm1ft
      @GT-tm1ft 7 місяців тому

      @williamwallace5899 You're welcome. Hope you can get some clarification from the pension centre.

  • @johnfrankes8992
    @johnfrankes8992 8 місяців тому +1

    Good video Adam, as always. In my case I contacted Service Canada regarding my benefits because I was on a disability pension through my employer. They told me that my CPP would start automatically at age 65 because of that, and also my OAS. I never asked or told them, but maybe the disability part was a trigger?

    • @ParallelWealth
      @ParallelWealth  8 місяців тому +1

      Possibly.

    • @heatherbee8848
      @heatherbee8848 8 місяців тому

      If you're in receipt of CPP Disability benefit, it will automatically convert to CPP Retirement at age 65 plus one month. Nothing you have to do, it just converts the month after you turn 65. Make sure your OAS app is submitted because the CPP retirement pension upon conversion will be lower than your CPP DSB benefit. And the OAS app can take up to 150 days to process.

  • @tivertontom
    @tivertontom 8 місяців тому +2

    i got the forms and did NOT send them in. I called and they said it would NOT auto start. ... I'll be angry if i get a/the cheque/payment ... I guess I'll call then (?)

  • @BRASS8888
    @BRASS8888 8 місяців тому +1

    excellent. as added information and complementing this video: can you do a new video taking in consideration that OAS didi not increase in April. Probably wont increase in July and october since the inflation will probably be stable or going down (hence no increase). is it better to delay and benefit from the 0.6% increase or just take it knowning that it wont incease for the next 2 or 3 quarter. thanks in advance. have a great day

  • @PeterVanEck-s8p
    @PeterVanEck-s8p 8 місяців тому +2

    Hi Adam, so for the last component of this video about a high income person who did not know that their OAS had started and it was clawed completely back, what t4 would be produced if they never received any money. Surely cra would not tax you on money never received?

    • @ParallelWealth
      @ParallelWealth  8 місяців тому +1

      T4OAS

    • @DoneByD
      @DoneByD 8 місяців тому

      The T4OAS would show total income and then the offsetting total tax --- the clawback or recovery tax is just a with holding tax, like all income tax deducted at source and then a reconciliation is done when filing your actual tax return for the particular tax year.

  • @tracyli1957
    @tracyli1957 8 місяців тому

    Thank you Adam another great video question once you start collecting OAS is that a set amount plus yearly adjustment to the inflation or as your income become less and less into the following retirement years, does it get adjusted according to your tax return may increases as your earnings less in the fall of years? thanks

    • @ParallelWealth
      @ParallelWealth  8 місяців тому

      Set and grows quarterly with inflation. If income becomes quite low, then GIS may kick in.

  • @rpaulpen
    @rpaulpen 8 місяців тому +1

    Thanks Adam. Good video. Question: Does income from OAS previous year count towards net income therefore potentially exceeding threshold?

    • @DoneByD
      @DoneByD 8 місяців тому +3

      Yes, OAS payments form part of Step 2 Total income on line 11300 of the income tax form.

  • @helenlee7802
    @helenlee7802 Місяць тому

    That's my delema . How can I stop OAS? I didn't get any but I am enrolled.

  • @alant383
    @alant383 5 місяців тому

    What happens if you renounce Canadian citizenship and live outside Canada? Do you still get CPP and OAS? What is the taxation difference, if any? They probably apply the 25% penalty tax but is there any guidance on this?

  • @helenlee7802
    @helenlee7802 Місяць тому

    I am getting cpp but I don't want to apply OAS due to high income but automatically came in and I am paying recovery tax or roll back. Can I stop and delays?

  • @annaleeb2414
    @annaleeb2414 8 місяців тому

    My sister (2 years older than me) told me I had to actively stop my OAS as hers had started automatically. (Too bad she didn’t know she could cancel it within 6 month of it starting!) When I turned 65, I tried to stop it online but the online function wasn’t working for me. When I finally connected with someone at the CRA, I was told that I was NOT set up for the OAS to start automatically and that is why the online system wasn’t working for me. So OAS does not start automatically for everyone. Best to check as you approach your 65th birthday!

  • @rogercyr1551
    @rogercyr1551 8 місяців тому +1

    I think it might be helpful for people to know that for the 2024 tax year the OAS maximum clawback income threshold is $142,609. According to Human Resource Development Canada, only about five percent of seniors receive reduced OAS pensions, and only two percent lose the entire amount.
    I'm a 2-percenter, and yes, I consider myself fortunate.
    My question: Assuming I don't start collecting OAS at 70 because I'm beyond the maximum threshold at this time, if my circumstances change such that at, say, 82, I suddenly find myself under the maximum threshold, will I be able to apply then for OAS? Or will I be out of luck because I didn't start collecting at 70 (even if I had to give it all back at that time)? A kind of "sucks to be you" situation? I would think not, but I'd like to know for sure...just wondering if I should apply now even if I have to give it all back, "just in case" for down the road.

  • @ma.melinegarcia5639
    @ma.melinegarcia5639 17 днів тому

    Why is cpp and OaS inflation rate so Low..Doesn't the Canadian Government not realize both are not enough to live off

  • @jankowalski-et6xc
    @jankowalski-et6xc 8 місяців тому +3

    Question: If for example somebody lived in Canada for 30 years at age 65. Started collecting OAS at age 65. Will OAS benefit be increasing every year for next 10 years - untill 40 years of Canadian residency is reached? ( Lets forget about yearly inflation increase here).

    • @DoneByD
      @DoneByD 8 місяців тому +4

      No it doesn't --- your years of residency for OAS are between the ages of 18 & 65.

    • @heatherbee8848
      @heatherbee8848 8 місяців тому

      No you lock in your rate when you start receiving it. It does not increase as your years of residency increase. If you want a higher rate, just wait until you've had 40 years of residency to apply so you can get the maximum

    • @DoneByD
      @DoneByD 8 місяців тому

      @@heatherbee8848 OP rate was locked in at 30 years (or 75%) as OP states "lived in Canada for 30 years at age 65". You can't get anymore years of residency after age 65.

    • @heatherbee8848
      @heatherbee8848 8 місяців тому

      @@DoneByD true. and once you start collecting any benefit under the CPP and OAS umbrella (such as the ALW or ALWS) you cannot accummulate any more years of residency after you begin receiving the benefit. You lock in your rate at the month you begin collecting.

  • @CreativeCustomDesigns
    @CreativeCustomDesigns 8 місяців тому

    I read somewhere that depending on the year you were born, you might not be able to collect until almost 67?

  • @petervaneverdink448
    @petervaneverdink448 8 місяців тому

    I recently turned 64 and within a month I received in the mail an info package on OAS and GIS. I do not have a My Service Canada account. The accompanying letters states that their records show that they have not yet received my application but they have enclosed an integrated OAS/GIS application form to use if i choose to apply for them at this time. Sounds like, in my case at least, that OAS does not start automatically.

  • @AuralioCabal
    @AuralioCabal 8 місяців тому

    Hi Adam , I am retiring in the Philippines ( birthplace)after being Canadian a over 50 years , will my CPP and GIS be reduced? currently receiving both ,aprox $2000/ month, should i consider being a " Snowbird" - 6 months in and out , i have no health issues ( not reliant on Canadian Health Services)but prefer the Philippines for weather

  • @FredAndrea-z3p
    @FredAndrea-z3p 3 місяці тому

    Phoebe Street

  • @fuse98
    @fuse98 8 місяців тому

    Is there an age that you must be before you can tell them to not automatically start my OAS?

  • @DoneByD
    @DoneByD 8 місяців тому +1

    ⭐⭐⭐⭐⭐ - great video and information Adam... Thank you for sharing

  • @garth217
    @garth217 8 місяців тому +3

    Adam, another good video.
    My question relates to OAS clawback and RRSP meltdown. I'm concerned that if I meltdown my RRSPs in my early to mid-60s, my income will increase significantly and result in a large clawback in OAS. I'd have to figure in the advantages of delaying CPP to increase it in comparison to the increased taxes paid as a result of the meltdown and OAS clawback. I think I'll need HAL the computer from 2001 A Space Odyssey to get the calculations correct.

    • @GT-tm1ft
      @GT-tm1ft 8 місяців тому +1

      Instead of sweating over spreadsheets, why not get a professional like Adam to do a plan for you? I did. No stress, no blind spots and the tax strategy easily saved more than the cost of a plan.

    • @DoneByD
      @DoneByD 8 місяців тому +1

      Or don't start your OAS and then there is not any recovery tax to worry about as it's zero with an advantage of increasing your benefit amount to the tune of 7.2%/year to age 70 and then another additional 3.6% (over 10% plan design increase) lift at age 75.

    • @ParallelWealth
      @ParallelWealth  8 місяців тому

      Happy to help you map this out. www.parallelwealth.com/planning

  • @WilliamHerman-p7d
    @WilliamHerman-p7d 3 місяці тому

    Keeling Island

  • @5snowhite
    @5snowhite 8 місяців тому +1

    OAS Clawback- if deferred to 70 does the minimum clawback start 6% higher to account for the increased 6% in the OAS payments?

    • @DoneByD
      @DoneByD 8 місяців тому +1

      No it doesn't - clawback starts at the same point same 15% but since your total OAS benefit is higher it will not be fully clawed back until your net income is also higher.

    • @ParallelWealth
      @ParallelWealth  8 місяців тому +1

      Yes, you have a higher end limit. Base starts at the same number

    • @heatherbee8848
      @heatherbee8848 8 місяців тому

      Hoping this helps explain things. When calculating clawback they take your total net world ncome and subtract the lower threshold amount. Whatever that difference is they take 15% of that to calculate your total clawback amount. Then they divided by 12. Since there are 12 months in the year and that will be your monthly clawback amount. Your OAS rate is your OAS rate and it stays the same based on the month you locked in on your rate.

    • @DoneByD
      @DoneByD 8 місяців тому

      @@heatherbee8848 another clarification point is your OAS actually may adjusted upward quarterly so if CPI increases your OAS benefit amount will increase as well. The new max age 65 & 75 rates are posted on website at the start of each quarter (Jan, Apr, July & Oct).

  • @Proacguy2-vi6cv
    @Proacguy2-vi6cv 8 місяців тому +1

    If you have a tax refund, the clawback amount will simply be deducted from your tax refund

    • @DoneByD
      @DoneByD 8 місяців тому

      The clawback or recovery tax is just a with holding tax, like all income tax deducted at source and then a reconciliation is done when filing your actual tax return for the particular tax year. So anything taken at source is just an estimate until tax filing time when the actual amounts due are calculated and compared against taxes paid/submitted via source with holdings.

  • @RosalinaAmbrose-i1j
    @RosalinaAmbrose-i1j 2 місяці тому

    Fadel Dam

  • @LuckyqueenA
    @LuckyqueenA 4 місяці тому

    Not everyone has the same amount

  • @jksouthern
    @jksouthern 8 місяців тому +1

    With this new Canada Capitol gains assault my dad will lose all his OAS if he sells his cottage that he built with his hands after 40 years due to clawbacks and gains tax. Hard working lower middle class Canadians are not allowed to have money. Pathetic country. Total loss of OAS and stripped of capital gains?