Inside: Learn the about OAS payment updates of this year 2024, understand the process & what’s in it for you
The Old Age Security (OAS) pension is an important source of income for many Canadian seniors. It provides financial support to eligible individuals aged 65 and above, helping them cover their basic living expenses. However, the amount received through OAS may not always be enough to meet the rising cost of living in Canada.
To address this issue, the Government of Canada has announced an increase in OAS payments starting from 2024. This increase will be implemented gradually over a period of five years, providing additional financial support to seniors who rely on OAS as their primary source of income. In this blog post, we’ll take a closer look at the upcoming OAS increase and its impact on Canadian seniors.
OAS Payments in 2021
Before we dive into the details of the upcoming OAS increase, let’s first understand how much seniors currently receive through this pension program. As of 2021, the maximum monthly payment for OAS is $615.37. This amount is adjusted every quarter based on changes in the Consumer Price Index (CPI). In addition, eligible seniors may also receive the Guaranteed Income Supplement (GIS) if they have a low income and minimal or no other sources of retirement income. The maximum limit from this year shifted to monthly payment of $965.
OAS Increase in 2024
Starting from July 2024, the Government of Canada will increase OAS payments by 10% for seniors who have reached the age of 75. This means that eligible seniors will receive an additional $61.54 per month, bringing the maximum monthly payment to $676.91. This increase will be implemented gradually over a period of five years, with a 2% increment each year.
Impact on Canadian Seniors
The OAS increase in 2024 will provide much-needed financial relief to Canadian seniors who rely on this program as their primary source of income. It will also help offset the rising cost of living, especially for seniors who are struggling to make ends meet. Additionally, the gradual implementation over five years will allow seniors to adjust their expenses accordingly and plan for the future.
Other Ways to Supplement Retirement Income
While OAS and GIS provide important support for Canadian seniors, it may not be enough to cover all of their expenses. As such, it is important for seniors to explore other ways to supplement their retirement income. This can include investing in a Registered Retirement Savings Plan (RRSP), applying for the Canada Pension Plan (CPP), or even exploring part-time job opportunities.
Conclusion
The OAS increase in 2024 is a positive step towards supporting Canadian seniors in their retirement years. It not only provides financial relief, but also acknowledges the rising cost of living and addresses the needs of our aging population. Seniors should also take advantage of other available resources to supplement their income and ensure a comfortable retirement.
As we strive towards a more inclusive and equitable society, it is important to continue advocating for the well-being of our senior citizens. So, let us support and uplift our seniors as they have contributed greatly to building and shaping Canada into the country it is today.
Note: This before making any opinion or decision please visit the official website to check current guidelines or updates.