2021 Old Age Pension Amounts

What is the 2021 Old Age Security Pension Amount? 

Are you retired or about to retire and would like to calculate the pension amount that you are entitled to? Bonjour Résidences can inform you of the various amounts that you could receive from public pension plans and the 2021 old age security amounts. 

Federal Retirement Benefits

Alongside a personal pension plan, the government also offers retired individuals in Canada an Old Age Security supplement. Receiving these benefits can vary depending on certain conditions. First and foremost, the OAS pension amount is determined based on your marital status:

• Single, widowed, or divorced;
• A retired person’s spouse or partner who receives benefits or who has died.

Moreover, each pension plan is granted based on an annual salary limit and residency status in Canada. Here are the different accessible benefits and amounts of payments in place for the months of April until June 2021:

* In 2021, if your annual salary was above $79,845, you must reimburse a portion of the obtained pension. This reimbursement is equivalent to 15% of your net revenue, including OAS, which exceeds $79,845.

Old Age Security Pension

The Old Age Security pension program (OAS) is accessible to all individuals over the age of 65 who reside in Canada. This pension can be received during the month after individuals turn 65 years old and the amount is calculated based on the length of their residency in Canada or in certain countries from the age of 18. In most cases, the sign-up process occurs automatically.

What you need to know about the OAS:

• The maximum OAS benefit in 2021 is $618.45 per month;
• It is considered as taxable income;
• Your annual income must be less than $129,260 to be admissible.

Discover the Canada Old Age Security 2021 payments calendar to learn more about payment dates.

Revenue-Based Supplementary Benefits 

Secondly, all individuals who receive Old Age Security benefits are also eligible to receive the Guaranteed Income Supplement (GIS). This benefit is offered to residents aged 65 and up who reside in Canada and receive an OAS pension.

The amount of the old age pension that you are entitled to depends on your personal situation and annual revenue:

• A single person can receive $923.71 monthly if their annual revenue is less than $18,744. The same amount will be received by individuals who have a spouse that is not retired whose annual combined revenue is less than $44, 928.
• If your spouse is retired, you can receive $556.04 if your annual combined revenue is less than $24,768.

Payments are made monthly and this income is not taxable.

Allowance Benefits

The Allowance benefit is available for individuals aged 60 to 64 years old whose spouses or common-law partners are retired. To be entitled to this Allowance, you need to be a Canadian citizen or legal resident, and have resided in Canada for at least 10 years since the age of 18.

The amount of this old age pension can reach as much as $1,174.49 per month if the combined revenue of both spouses or common-law partners is less than $34,704.

Allowance for the Survivor

Finally, Allowance for the Survivor is intended for people aged 60 to 64 whose spouse or common-law partner has died. To benefit from this allowance, you must not be remarried or in a de facto union.

If you qualify for old age security survivor benefits, you can earn $1,400.05 monthly if your annual income is less than $25,272.

Finally, for all Canada pensions, be aware that the amounts are revised every three months to take the increased cost of living into account. To get the old age pension amount specific to your situation, consult the Canadian Retirement Income Calculator.

How to Calculate Your Retirement Fund in Québec

In addition to the Canadian old age pension, the amount of old age pension in Québec is calculated based on your contribution rate for the Québec Pension Plan (QPP). The amount that you are entitled to, will depend on different factors such as:

• The age at which you start to receive your pension;
• The number of years of contribution;
• The employment income you contributed 

You can collect your pensions as early as age 60. However, the monthly amounts will be lower than if you start at age 65, or later. Note that this income is taxable and that the amount is indexed to the cost of living. The 2021 old age pension maximum amount is $1,208.26 per month for those who started receiving their pension at age 65.

To calculate the amount of pension that you could be entitled to in Québec, you may consult your Statement of Participation (QPP).

Finally, if you contributed in another province of Canada, you could also get Canada Pension Plan (CPP) payments. Eligible from age 60 and paid for life, the amount is also calculated according to:

• Your average income during your working life;
• Your CPP contributions;
• The age at which you started to receive the CPP retirement pension.

Finding a Residence That Suits Your Budget

Looking to move to a residence that satisfies your budget but not sure where to start? The team at Bonjour Résidences is here to accompany you!

Based on the type of residence that interests you, your needs, your resources and the area that you desire to live in, our senior housing specialist can help you find residences that reflect your criteria. Our budget consultants can also help you evaluate your financial situation based on the OAS pension amounts, tax credits, and other benefits to which you would be entitled.

Contact us at 1-844-918-1020 to discuss your questions and your needs. We would be delighted to help you find a fulfilling space that suits your budget!