What age can you collect OAS in Canada?
In Canada, the Old Age Security (OAS) program is a vital component of the country’s social security system, providing financial support to eligible seniors. The age at which individuals can begin collecting OAS benefits is a common question among Canadians nearing retirement age. Understanding the eligibility criteria and the age at which you can start receiving these benefits is crucial for financial planning and ensuring a comfortable retirement.
Eligibility for OAS benefits in Canada
To be eligible for OAS benefits, individuals must meet certain criteria. First and foremost, they must be at least 65 years of age. Additionally, they must have lived in Canada for at least 10 years after turning 18. The 10-year residency requirement can be fulfilled in whole or in part by living in Canada or in a country with which Canada has a social security agreement.
The age at which you can start collecting OAS benefits
The age at which you can begin collecting OAS benefits in Canada is 65. However, it is important to note that you can start receiving your benefits as early as age 60, but doing so will result in a permanent reduction in your monthly payments. If you choose to start collecting OAS at age 60, your monthly benefit will be reduced by 0.6% for each month before age 65 that you collect early.
On the other hand, if you wait until after age 65 to start collecting OAS, you can receive a permanent increase in your monthly payments. For each month you delay collecting OAS between the ages of 65 and 70, your monthly benefit will increase by 0.7%. This means that if you wait until age 70 to start collecting OAS, your monthly benefit will be 36% higher than if you started at age 65.
Planning for your OAS benefits
Understanding the age at which you can collect OAS benefits is essential for effective retirement planning. It is advisable to start planning for your OAS benefits well in advance of reaching retirement age. This includes considering the following:
1. Assessing your financial situation: Determine how much OAS income you can expect to receive and how it will fit into your overall retirement budget.
2. Evaluating other retirement income sources: Consider any other sources of retirement income, such as a workplace pension, RRSPs, or other investments.
3. Deciding when to start collecting OAS: Based on your financial needs and goals, decide whether to start collecting OAS at age 60, wait until age 65, or delay until age 70.
By carefully planning for your OAS benefits, you can ensure a more comfortable and secure retirement in Canada. Remember, the age at which you can collect OAS in Canada is 65, but you have the flexibility to start collecting earlier or later, depending on your individual circumstances and needs.
