You usually want 40 years of residency in Canada after the age of 18 to qualify for the utmost OAS pension. The utmost month-to-month cost as of the fourth quarter of 2023 is $707.68 for somebody who began their OAS at age 65. Somebody aged 75 or older can be entitled to as much as $778.45.
Exceptions to the OAS residency requirement
There could also be conditions the place you qualify for the total pension with out assembly the 40-year residency requirement. One instance can be in the event you have been over 25 and lived in Canada or had an immigration visa on or earlier than July 1, 1977.
One other occasion the place it’s possible you’ll qualify for the next pension is in the event you lived in a rustic with a social safety settlement with Canada. Time spent in different nations might depend in the direction of your OAS residency components. If you happen to labored outdoors Canada for the Canadian Armed Forces or a world charitable group, this time may also depend.
Deferring OAS to extend residency necessities
In case you have below 40 years of residency, your pension is pro-rated. You might want to have lived in Canada for not less than 10 years after the age of 18 in the event you apply for OAS as a Canadian resident. If you happen to dwell outdoors of Canada whenever you apply, you want 20 years of residency.
Curiously, Amin, you’ll be able to defer your OAS pension after age 65 to extend your residency necessities. This may work nicely for somebody who’s making an attempt to get to 10 or 20 years, respectively, to qualify for the pension in any respect. In your case, the deferral won’t have an effect on the residency calculation. I’ll clarify why.
The reason being an OAS recipient deferring their pension after age 65 can solely profit from considered one of two enhancements: one, the years of residency; or two, the age-based enhance. If you happen to defer OAS to after age 65, your age 65 entitlement will increase by 0.6% per thirty days or 7.2% per yr of deferral. You can begin it as late as 70 for a most 36% enhance.
If you happen to get an additional yr or 1/40th of residency, that quantities to a 2.5% increase in your OAS.
Sadly, Amin, you can’t get the two.5% residency increase and the 7.2% age increase for deferring. You get the upper of the 2, which is clearly the age-based adjustment of seven.2%.
