You typically 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 complete pension with out assembly the 40-year residency requirement. One instance can be should 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 you might qualify for a better pension is should you lived in a rustic with a social safety settlement with Canada. Time spent in different international locations might depend in the direction of your OAS residency components. For those who 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 beneath 40 years of residency, your pension is pro-rated. It is advisable to have lived in Canada for at the very least 10 years after the age of 18 should you apply for OAS as a Canadian resident. For those who stay outdoors of Canada whenever you apply, you want 20 years of residency.

Apparently, Amin, you possibly can defer your OAS pension after age 65 to extend your residency necessities. This will work effectively 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 one among two enhancements: one, the years of residency; or two, the age-based enhance. For those who defer OAS to after age 65, your age 65 entitlement will increase by 0.6% per thirty days or 7.2% per 12 months of deferral. You can begin it as late as 70 for a most 36% enhance.

For those who get an additional 12 months or 1/40th of residency, that quantities to a 2.5% enhance in your OAS.

Sadly, Amin, you can not get the two.5% residency enhance and the 7.2% age enhance for deferring. You get the upper of the 2, which is clearly the age-based adjustment of seven.2%.

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