Pensioner Handbook – Other forms of retirement income Sources of retirement income Newly retired?
Normally CPP benefits begin at age 65 but you can receive them as early as age 60 if you qualify (you have “substantially stopped working” as defined by the CPP). Payments received before age 65 are reduced by .5% for each month (6% per year) you are away from turning 65. The Old Age Security (OAS) pension is a flat-rate, non-contributory pension which begins at age 65. You do not have to have worked in Canada to receive it but it does have a residency requirement (to collect the full amount, you have to have lived in Canada for 40 years after reaching age 18). It is adjusted for inflation on a quarterly basis. Payments are taxable and if you earn income over a specified amount, you may be asked to repay some of the amount. A Guaranteed Income Supplement and an OAS Allowance are also available for those who qualify. Your CPP and OAS benefits do not begin automatically, even when you turn 65. It is best to apply for these pensions six months before you expect them to start. If have any
