Allowance for people aged 60 to 64 – While receiving an Allowance

7. While receiving an Allowance

The Allowance is a benefit under the OAS program. See What you need to know when receiving an Old Age Security pension for information on such things as payment dates and rates, income tax and when to notify Service Canada.

You must contact Old Age Security if one of the following situations occurs, since it might change the amount of your Allowance payment:

  • You or your spouse or common-law partner has a lower annual income due to a retirement or a reduction or cessation of pension income (in such cases, we can calculate your Allowance by estimating your income for the current year instead of using last year's income)
  • Your spouse or common-law partner is incarcerated
  • You divorce or separate, or your spouse or common-law partner dies

Note:

As of January 1, 2017, for couples where one of you receives the Guaranteed Income Supplement (GIS) and the other person receives the Allowance, if you are forced to live apart for reasons beyond your control (such as a requirement for long-term care), you may be eligible to receive higher benefits based on your individual income, as is currently the case for couples where both spouses or partners receive the GIS.

To be eligible, you must advise Service Canada in writing by submitting the Statement – Spouses or Common-law Partners Living apart for Reasons Beyond their Control explaining your living situation, and indicating the date that you and your spouse or common-law partner were first forced to live apart.

Can my Allowance payments ever stop?

Yes, your Allowance payments will stop if:

  • you or your spouse or common-law partner have not filed an individual Income Tax and Benefit Return with the Canada Revenue Agency by April 30, or if, by the end of June each year, we have not received the information about your or your spouse or common-law partner’s net income for the previous year
  • you leave Canada for more than six consecutive months
  • your net income (or in the case of a couple, your combined net income) is above the maximum annual threshold
  • you are incarcerated in a federal penitentiary because of a sentence of two years or longer
  • you have reached the age of 65 (payments stop the month after your 65th birthday when you may be eligible for the Old Age Security pension)
  • you divorce or separate from your spouse or common-law partner
  • your spouse or common-law partner is no longer eligible for the Guaranteed Income Supplement
  • your spouse or common-law partner dies (you may be eligible for the Allowance for the Survivor), or
  • you die (it is important that someone notify us about your death to avoid overpayment)
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