Will Canada's Old Age Security (OAS) still be around when I retire?
As we all know, retirement is something that we all have to face at some point in our lives. For some of us, it's a far-off event that we don't need to think about for years, but for others, it's right around the corner. No matter when you plan on retiring, it's important to know what your options are and how to plan for a comfortable retirement.
One of the first things you need to think about is whether or not you will have enough money to live on. If you're like most Canadians, you probably don't have a huge retirement nest egg saved up. That's where Old Age Security (OAS) comes in.
OAS is a government-sponsored retirement income program that provides a basic level of income for seniors. It's not means-tested, so everyone is eligible to receive it, as long as they meet the age and residency requirements.
The current OAS pension is $642.25 per month, or $7,707.00 per year. If you're married or in a common-law relationship, your partner can also receive OAS, which would double your annual income to $15,414.00.
Of course, OAS is not meant to be your only source of income in retirement. It's designed to supplement other sources of income, such as a company pension, personal savings, or income from investments.
So, how do you know if OAS will still be around when you retire?
The simple answer is that no one knows for sure. OAS is a government-sponsored program, and like all government programs, it is subject to change.
That being said, OAS has been around since 1952 and is one of the most popular and well-established government programs in Canada. It's unlikely that the government would eliminate it entirely, but they could make changes, such as reducing the amount of the monthly pension or changing the eligibility requirements.
If you're concerned about the future of OAS, the best thing you can do is to plan for a retirement that doesn't rely too heavily on it. Save as much as you can on your own, and consider investing in a RRSP or TFSA. That way, even if OAS is reduced or eliminated, you'll still have other sources of income to fall back on.
You may enjoy these other articles
What do I need to know about Canada's Guaranteed Income Supplement (GIS)?
As you approach retirement, you may start to wonder what, exactly, you need to do to ensure a comfortable lifestyle. One of the key questions on many people’s minds is whether or not they will be eligible for Canada’s Guaranteed Income Supplement (GIS).
Are annuities a good choice for my retirement?
When it comes time to think about retirement, there are a lot of things to consider. One of the biggest questions is how you will generate income during retirement.