Last week, Ottawa announced a financial assistance of seniors, a one-time payment of up to $ 500, non-taxable. Who will have right ?
The federal government has based this aid plan of $ 2.5 billion, following increases in expenditures that are a burden on the retirees because of their containment. Like many assistance programs established because of the pandemic, Ottawa has opted for the criteria very broad in order to speed up the delivery of aid.
At least that is what we can conclude with the reading of the description of the aid in question.
First 300 $, even for expats
A first tranche of $ 300 will be paid to the ” seniors eligible for the pension of the old age Security [OAS] “. Who is eligible ?
He must be a citizen or canadian resident, be 65 years of age and have lived in the country for at least 10 years, after the age of 18 years, even without ever having paid taxes. It has the right to PSV when you live abroad, but as long as you have lived for at least 20 years in Canada.
Unless the federal government does not specify to the contrary, people 65 years of age professionally active will be able to claim a $ 300 non-taxable, even if they are expatriates. Retirees over the age of 65 who have decided to postpone the payment of their pension (you can make up to 70 years) will also be able to ask for the check.
When a retired man declares income of 79 054 $, it begins to lose some of the PSV and he gets it until its income reaches 128 137 $. After that, it earns nothing due to the recovery tax. Theoretically, it does not remain about it less ” eligible “. A couple of wealthy retirees should therefore, in theory, be able to receive up to $ 600 non-taxable.
Only 2 % of retirees are rich to a point of not touching a cent of PSV. Approximately 5% of them are resume a more or less large part because of their income.
Plus $ 200, for the less affluent.
In addition to the $ 300, the retirees ” eligible for the guaranteed income Supplement (GIS) will be entitled to $ 200 additional. A single person who declares income of $ 18,600 (excluding the PSV) is no longer receiving anything in GIS, so will not see the color of this extra help. For a couple, the threshold is set to 24 576 $ (excluding the PSV).
Among all retirees, the ability to withstand increases in expenditures due to the COVID-19 varies obviously depending on the income. One may ask whether it would not have been wiser to concentrate the bulk of the envelope to the poorest.
Facts to note
- A single pensioner who declares 18 599 $ (excluding PSV) receives $ 0.44 per month in guaranteed income Supplement. This gives him the right to assistance of $ 200, which is equivalent to 37.8 times its benefits the GIS of the year.
- His neighbor in the same situation that declares an extra dollar of income does not receive the GIS and does not receive the extra help.