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Retirement
Government benefits for low-income seniors: OAS Allowance and GIS
By ATB Wealth 2 February 2024 3 min read
There are programs that provide financial assistance for low-income seniors above and beyond Canada Pension Plan (CPP) and Old Age Security (OAS). Here’s a brief overview of the OAS Allowance and the Guaranteed Income Supplement (GIS) program.
The OAS Allowance
The OAS Allowance is available if you're between 60 and 64 and are the spouse or partner of a GIS recipient. You must meet all of the following conditions:
- Your spouse or common-law partner receives OAS and is eligible for GIS.
- You're a Canadian citizen or legal resident, currently live in Canada and have lived in Canada for at least 10 years since the age of 18.
- Your annual combined household income is less than the maximum annual threshold amount: $39,984 (combined income) for 2024.
The maximum allowance is $1,354.69/month (2024).
To learn more, visit this Government of Canada web page.
The OAS Allowance for the Survivor
The OAS Allowance for the Survivor is available if you're between 60 and 64, have a low income, and your spouse or partner has passed away. You must meet all of the following conditions:
- Canadian citizen or legal resident.
- Currently live in Canada and have resided in Canada for at least 10 years since the age of 18.
- Haven't remarried or entered into a common-law relationship.
- Have annual income less than the maximum threshold amount, $29,112 (for 2024).
The maximum allowance for survivors is $1,614.89/month for 2024.
The allowance stops the month after the surviving spouse's 65th birthday.
What is the Guaranteed Income Supplement (GIS)?
The Guaranteed Income Supplement (GIS) is a non-taxable pension provided to OAS recipients with low income who are living in Canada. To qualify for these benefits, you must file an annual tax return.
What is the eligibility criteria for the Guaranteed Income Supplement (GIS)?
To qualify for GIS, you must currently be receiving OAS and your annual income (or combined annual income in the case of couples) must be lower than the maximum annual thresholds below (2024 amounts):
- Single/divorced/widowed $21,264.
- Couple, spouse receives full OAS: $28,560, combined income.
- Couple, spouse does not receive OAS or allowance: $51,840, combined income.
- Couple, spouse receives the allowance: $39,984, combined income.
If your income or combined income exceeds these thresholds, you won't qualify for GIS. If you decided to defer your OAS payment, you won't be eligible for GIS and your spouse or partner will not be eligible for the allowance.
What are the Guaranteed Income Supplement (GIS) benefits?
Your GIS amount will depend upon your marital status and your previous year’s income, or combined annual income in the case of couples. The maximum monthly GIS amounts for individuals receiving the maximum OAS are (2024 amounts):
- Single/divorced/widowed $1,065.47.
- Couple, spouse receives full OAS: $641.35.
- Couple, spouse does not receive OAS or allowance: $1,354.69.
- Couple, spouse receives the allowance: $641.35.
For information regarding the GIS amount for your specific income level, see the GIS tables provided by Employment and Social Development Canada.
How to apply for the Guaranteed Income Supplement (GIS)
If you were automatically enrolled in OAS, you will be automatically enrolled in GIS.
If you did not receive an automatic enrolment letter, you will need to apply online by accessing your My Service Canada account, or by mailing the paper application to Service Canada.
If you're already receiving OAS but not GIS you will need to apply in writing.
Other financial assistance for low-income seniors
Low-income seniors in Alberta may be eligible for a variety of provincial programs as well, including the Alberta Seniors Benefit.
Understanding OAS and GIS benefits will equip you to plan for your future, your way. Looking for specific advice on how these benefits can impact your retirement? Want to create a personalized retirement plan? Connect with an ATB Wealth advisor.
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