Understanding Income and Benefits: Essential Information for Seniors in Canada

Numerous government initiatives aim to support older Canadians in maintaining their financial independence.

Typically, applying for income or benefits through a government program is required. If you qualify, the benefits you receive may vary based on your income level. Most programs begin at age 65, though some may be available earlier.

A crucial point to understand about nearly all government programs is that you must first file a personal income tax return to be eligible.

Table of Contents

Federal Programs

Old Age Security (OAS), Guaranteed Income Supplement (GIS), and Spouse’s Allowance

If you are 65 years or older and have lived in Canada for at least 10 years, you can apply for the Old Age Security (OAS) benefit. Applications can be submitted up to six months before your 65th birthday, and it’s advisable to file your annual income tax return to prevent any processing delays.

Canadians with low incomes who receive OAS may also qualify for the Guaranteed Income Supplement (GIS). If you are receiving GIS and your spouse is between 60 and 64, they can apply for a separate benefit known as the Allowance. This application can be made up to 12 months prior to turning 60. Additionally, widows or widowers aged 60 to 64 can claim the Allowance for the Survivor in similar circumstances.

Canada Pension Plan (CPP)

Most individuals working in Canada contribute to the Canada Pension Plan (CPP), which provides benefits for retirement, survivors, death, disability, and children for those who qualify. There are special provisions for those who lowered their earnings to care for young children, as well as sharing options for spouses and common-law partners.

In Quebec, a similar program exists called the Quebec Pension Plan (QPP), which serves residents of the province. Individuals who have contributed to both the CPP and QPP will have their contributions combined.

Other Federal Programs

The federal government offers a range of additional programs. For example, the Home Adaptations for Seniors’ Independence Program assists low-income seniors with specific home renovations. There are also programs tailored for specific groups, including the War Veterans Allowance for veterans, the Assisted Living Program for First Nations people and Inuit, and the International Benefits Program for those who have lived or worked abroad.

Moreover, many older Canadians may be eligible for low-income support programs, such as the Residential Rehabilitation Assistance Program or the Emergency Repair Program.

Provincial and Territorial Programs

Most provinces and territories offer additional support for individuals receiving the Guaranteed Income Supplement (GIS) or the Allowance. This support is typically provided automatically through the income tax system, except in Alberta and New Brunswick, where you need to apply. In Manitoba, extra assistance can be accessed as early as age 55, but an application is required for those under 65.

Your province or territory may also have specific programs for seniors, which can include: property tax deferment, property tax relief, rental subsidies, prescription drug subsidies, home support subsidies, fuel or utility subsidies, and bus pass subsidies.

Tips and Safeguards

To access OAS, GIS, the Allowance, CPP, and other federal programs, you must submit an application; these benefits are not granted automatically.

Since many programs rely on your income tax return to determine eligibility, it’s essential to file a tax return by April 30 each year, even if you have no income to report. Doing so also allows you to claim a GST rebate and other refundable tax credits.

If you are receiving OAS, GIS, the Allowance, or CPP and experience a change in circumstances (such as moving or the death of a spouse), contact Service Canada at 1-800-277-9914 (TTY: 1-800-255-4786) as soon as possible.

To check your eligibility for any program, reach out directly to government representatives rather than relying solely on information from friends or neighbors.

Other Brochures in This Series

Important information for older Canadians includes:

Financial planning
Income and benefits from government programs
Managing and protecting assets
Planning for potential loss of independence
Future housing needs
Creating a will and making funeral arrangements
Recognizing financial abuse
Identifying frauds and scams

Where to Find More Information

For details on both federal and provincial/territorial programs, please visit the appropriate website.

For telephone inquiries regarding OAS, GIS, the Allowance, and CPP, call 1-800-277-9914 (TTY: 1-800-255-4786; for service in French: 1-800-277-9915).

For additional resources, visit Canada.ca/Seniors or your local Service Canada office. To order more copies of this publication or to obtain a phone number for assistance in your province or territory, call 1-800-O-Canada (1-800-622-6232), TTY: 1-800-926-9105.

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