There are a variety of programs and services that are offered for seniors by the federal government and provinces, while the federal programs are the same across Canada, provincial programs will vary depending on which province you live in. In this article we will concentrate on benefits for residents of Ontario. If you reside in another province or even in Ontario, check the links we are providing in this article to find out more information.

Federal Programs

Canada Pension Plan (CPP)

The Canada Pension Plan (CPP) is a monthly taxable retirement pension benefit that replaces part of your income when you retire, and you will continue to receive it for the rest of your life. To qualify for CPP you must:

· Be at least 60 years old

· Have made at least one valid contribution to the CPP

Receiving CPP is not automatic, you must apply for it in advance of when you want your pension to start.

How much pension can you receive?

The amount you would receive each month is based on your average earnings throughout your working life. The factors that affect the amount you receive are:

· Your contributions to the CPP

· Your average annual earnings

· The age you decide to start your CPP retirement pension

For 2020, the maximum monthly CPP amount is $1,154.58 and the average monthly amount is $679.16.

You can continue to work while receiving CPP retirement pension without reducing the pension amount. You can even continue to contribute to the CPP even when you are between 65 and 70 years of age. Each year you contribute to the CPP will result in a post-retirement benefit and increase your retirement income.

When should I start collecting CPP?

The normal age to receive CPP payments is 65, however, you can apply and start collecting CPP pension payments when you reach 60 years of age. The payments will be reduced by 0.6% for each month you are under 65 to a maximum reduction of 36% if you start at age 60

If you start collecting after the age of 65, your payments will increase by 0.7% for each month up to a maximum increase of 42% if you start at age 70

You should consider your personal circumstances when deciding when to start receiving your CPP retirement pension. Things to consider are your health, your financial situation, and your retirement plans.

Other CPP Benefits

There are other CPP benefits that you may qualify for such as:

1. Post-retirement CPP benefit — if you work while receiving your CPP retirement pension while you are under age 70 and continue to make contributions, these contributions will go toward your post-retirement benefits, which will increase your retirement income

2. CPP disability benefit — if you are under 65 and receiving CPP retirement pension, and you have a severe and prolonged disability, you may qualify for a CPP post-retirement disability benefit if you made enough CPP contributions

3. Children’s benefit — if you are receiving a CPP disability benefit, your children who are under age 18 or if attending full time school, between 18 and 25, can receive a monthly benefit for dependent children

4. CPP survivor’s pension — paid to the person who is the legal spouse or common-law partner at the time of death of the CPP contributor

Guaranteed Income Supplement (GIS)

A non-taxable income supplement available to low-income Old Age Security pensioners. You can receive GIS if:

· You are 65 years or older

· You live in Canada

· You receive Old Age Security (OAS)

· Your income is below $18,624 if you are single, widowed, or divorced

· Your income and your spouse/common-law partner is below

o $24,576 if your spouse/common-law receive full OAS

o $44,640 if your spouse/common-law does not receive OAS, or receives Allowance benefit

If you are a sponsored immigrant and have lived in Canada for less than 10 years after age 18, you cannot receive GIS while you are still sponsored unless your sponsor suffers personal bankruptcy, or is imprisoned for more than 6 months, or is convicted of abusing you, or dies.

If you are an immigrant who is not sponsored, you could receive GIS if you receive Old Age Security.

The maximus amount of GIS you can receive will vary depending on your situation:

· If you are single, widowed, or divorced and your annual income is less than $18, your maximum GIS payment per month will be $917.29

· If your spouse/common-law partner receives full OAS pension and your family’s annual income is less than $24,576, your maximum GIS payment per month will be $552.18

· If your spouse/common-law partner does not receive an OAS pension and your family’s annual income is less than $44,640, your maximum GIS payment per month will be $917.29

· If your spouse/common-law partner receives an allowance benefit and your family’s annual income is less than $44,640, your maximum GIS payment per month will be $552.18

Allowance Benefit

If you are eligible to receive GIS, your spouse/common-law partner may be able to receive the Allowance benefit if your spouse or common-law partner:

· Is between 60 and 64 of age

· Is a Canadian citizen or legal resident

· Resides in Canada and has resided in Canada for at least 10 year since the age of 18

· Your combined annual income is less than $34,416

Old Age Security (OAS)

The Old Age Security (OAS) pension is a taxable monthly payment you can get if you are 65 and older. In most cases, you will be able to receive OAS payments automatically and no enrollment will be required to receive it.

You can receive up to $614.14 per month in OAS benefit if your annual income is less than $128,149. The amount you receive will depend on how long you live in Canada after the age of 18. Your employment history is not a factor in determining eligibility, you can receive OAS benefit even if you have never worked or are still working.

To receive OAS and you are living in Canada, you must:

· Be 65 years old or older

· Be a Canadian citizen or legal resident at the time of approval of your OAS pension application

· Have resided in Canada for at least 10 years since the age of 18

If you lived in Canada for less than 40 years after age 18, you would receive a partial payment amount based on the number of years in Canada divided by 40. For example, if you lived in Canada for 20 years after age 18, you would receive 50% of the full OAS pension.

To receive OAS and you are living outside Canada, you must:

· Be 65 years old or older

· Have been a Canadian citizen or a legal resident of Canada on the day before you left Canada

· Have resided in Canada for at least 20 years since the age of 18

Provincial Programs

Ontario Guaranteed Annual Income System (GAINS)

If you are 65 or older and receive Old Age Security pension and the Guaranteed Income Supplement payments, you could get up to $83 per month

Provincial Land Tax Deferral Program for Low-Income Seniors

You can apply for a deferral of part of the provincial land tax and education tax increases

Ontario Electricity Support Program

Provides low-income consumers with a monthly on-bill credit to reduce electricity bills

Ontario Senior’s Public Transit Tax Credit

You can get a tax credit to help with public transit costs

Ontario Seniors Dental Program (OSDCP)

This program is designed to support low-income seniors 65 years or older to access free, routine dental care, the program is delivered through the local public health unit where you reside.

You can apply for the program if you are 65 years of age or older, reside in Ontario, have an annual net income of $19,300 or less for a single person, or a combined net income of $32,300 or less for a couple

Reduced Co-Payment for Lower Income Seniors

You may be able to have the $100 annual deductible of the Ontario Drug Benefit Program waived and reduced to $2 per prescription

Trillium Drug Program

If you have high prescription drug cost and a low household income, you may be able to pay $2 or less for every prescription

Ontario Drug Benefit Program (ODB)

If you qualify, Ontario’s drug programs will pay most of the cost of some of your prescription drugs. This program is separate from OHIP

Ontario Senior Homeowner’s Property Tax Grant

If you are 64 and older and own a home, you could get up to $500 to help with the cost of property taxes

For more Information

Below are links to get additional information about programs offered for seniors:

A guide to programs and services for seniors

Ontario Tax credits and benefits

Ontario Public Health Units

My Service Canada Account

Please note that the above information is intended as a general source of information and should not be considered as specific source of tax, legal or financial advice. Tax rules and regulations are subject to change at any time, and we at MMS Accounting & Bookkeeping will help you navigate and fully benefit from any tax savings available to you. Should you need help finding which investment method is best suited for you, you may contact us for further details, you should also consult with your financial advisor.

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