In Canada, there are a lot of plans and programs which are used by the citizens to help with their retirement planning, and as of 2023, there are also many private options which can help with the retirement savings for the Canadians. This includes the popular names of programs including the likes of Canada Pension Plan or the CPP, followed by the Guaranteed Income Supplement or the GIS (which is also sent out at the same time when the Old Age Security Pension or the OAS is calculated and provided).
Not only that, it has been reported in the recent years that the Canadians in the country’s middle class had been facing difficulties, and as a result, they have not been able to save and plan for their retirement benefits. To help with this, there are a lot of private options including the names of RRSP or the Registered Retirement Savings Plan, and the workplace pension plans which can be taken by the individual as they try to plan their retirement pensions. To add to that, there is another big news which had been announced by the Canadian Government for the general public in 2016 first.
CAD 14,000 More in Retirement Benefits
The good news for the Canadian taxpayers is that there is going to be an increase in the retirement benefits and support payments which are scheduled for the year of 2024, and this increase is going to be a result of the direct increase in the cost of daily expenses of an individual who lives in the country. These increases are for all the Federal Benefits in Canada, and not only that, there is also a good announcement for the receivers of the CPP Benefits starting from 2024.
The CPP Benefits are going to be increased for the future workers in Canada, which means that the eligible Canadians who have either started working or have also started making valid contributions to the CPP plans are going to see increased benefits in the coming years. This is because there was an agreement which was reported for the increment in the CPP benefits in June 2016, and this was done with the aim of helping the middle class Canadian workers so they can receive increased benefits after they retire. This is also helpful because there are other plans including the Old Age Security Pension, which is also going to increase with the beginning of 2024.
Canada Retirement Benefits Increase Overview
|Guaranteed Income Supplement
|Federal Pension Plan
|Based on age, income, etc.
|Old Age Security Plan
Amount of GIS in Canada
The Old Age Security Pension in Canada is a monthly support payment which a resident is eligible to get if they have completed 65 years or more when they start getting the benefit. This OAS Benefit is also added to the other benefits which are designed to be a part of the OAS, and this includes the benefits like Allowances, Survivor’s Allowances in Canada, and the Guaranteed Income Supplement or the GIS amount. There are also one time payments (for the seniors born before 30th June 1947, and the grant for the residents who have received benefits during COVID 19) for the eligible residents in the country.
The Guaranteed Income Supplement or the GIS is a support payment which is sent out to the eligible Canadians who have reached 65 years or more, and this benefit is a non-taxable benefit. Not only that, this GIS income supplement is also decided by the individual’s income, and it is also made available for the senior citizens who receive their Old Age Security Pension but have low incomes. If the enrollment for the GIS is completed automatically, then a letter is sent to inform that the date of the first GIS payment is coming soon for the receiver.
Qualify for GIS Canada
The eligibility conditions for the GIS receivers include the receiver to be either 65 years old or older, and they also must be a resident in Canada. Following these conditions, the beneficiary must receive their OAS Pension, and if they are single or divorced or widowed, then the income which they earn needs to be less than CAD 21,456. Not only that, there are different income limits if the income of the receiver and their spouse (for eligibility) including combined income below CAD 28,320 (with full OAS), below CAD 51,408 (if there is no OAS), and below CAD 39,648 (if Allowance is received).
The GIS amount can be calculated using the table below, and this is also decided by the income earned in previous year and the marital status of the beneficiary:
|Single (Or Divorced/ Widowed)
|Below CAD 21,456
|Spouse with full OAS
|Below CAD 28,320 (combined)
|Spouse with Allowance
|Below CAD 39,648 (combined)
|Spouse with no OAS or Allowance
|Below CAD 51,408 (combined)
How to Apply GIS Canada
The GIS Benefits are going to be reviewed in April, July, January, and October, and the increase is decided with the help of the CPI values or the Consumer Price Index. These payments can be received either by the option of Direct Deposit or by checks, and the details required for signing up to get the GIS Benefits are Social Insurance Number, names of the countries where the individual has lived, date to start getting the GIS payments, age, etc.