State pensions: what Montreal residents can expect and when

0

Here are the amounts people can expect to receive on their fixed state pension in 2022, as well as the payment dates.

Article content

You would be forgiven if you felt like déjà vu again at the beginning of 2022. A quick respite from the health crisis that has plagued us for 22 months seems unlikely.

display

Article content

Nonetheless, life goes on, and so does your state pensions, should you be in the age group to receive them. Here are the amounts eligible individuals can expect for the coming year, as well as the payment dates.

This year, Quebec Pension Plan recipients (Retirement, Disability, Orphan, Spouse’s) who have completed a direct deposit can typically receive their payments on the last business day of each month. In 2022 these are January 31, February 28, March 31, April 29, May 31, June 29, July 30, August 31, September 29, October 31, November 30 and December 29th.

Article content

The monthly maximums for those applying for QPP benefits starting in 2022 are $ 1,253.59 for 65 year olds, $ 802.30 for 60 year olds (64% of maximum QPP pension at age 65), or 1,780.10 USD for 70 year olds (142% of maximum QPP pension at age 65). For those who started the QPP before 2022, the inflation-adjusted amount may not be the maximum amount listed above due to the calculation of the indexation. In addition, not everyone is entitled to the maximum QPP performance.

display

Article content

Retraite Québec has an online calculator for those who want to estimate their maximum QPP accomplishments by submitting an application now.

The surviving spouse’s maximum monthly pension for anyone aged 45-64 is $ 995.92. Those aged 65 and over can receive up to $ 751.15 per month. If you are already drawing an old-age pension, you will receive a combined pension up to a maximum amount that may not equal the sum of the survivor’s pension and the old-age pension. This can reduce the amount of the spouse’s pension.

It should be noted that QPP services are taxable. Quebec residents who would like more information about these benefits can call Retraite Québec at 514-873-2433 or apply online for benefits.

display

Article content

For those receiving federal retirement benefits, these payments can typically be automatically deposited into bank accounts on the third last banking day of the month. In 2022 these are January 27, February 24, March 29, April 27, May 27, June 28, July 27, August 29, September 28, October 27, November 28 and 21st December.

The OAS Pension is a monthly benefit available upon request to most Canadians 65 years of age or older who meet certain legal status and residency requirements. Individuals can defer receiving their OAS payments for up to five years. Anyone who takes off their OAS at a later point in time receives a higher OAS payment.

To be eligible for a retirement pension, they must be a Canadian citizen or legal resident of Canada in addition to the age of 65 or older, or a Canadian or legal resident of Canada if they no longer live in Canada, on the day prior to the approval of the application The day before the day he or she stopped living in Canada. If you are a Canadian resident at the time of application, you must have lived in Canada for at least 10 years after the age of 18. OAS applicants living outside Canada must have lived in Canada for at least 20 years after completing the age of 18.

display

Article content

If a person is not covered by either of these two scenarios, they may still be eligible for some type of pension as Canada has social security agreements with many countries. For more information about OAS, call Service Canada at 1-800-277-9914 or see the Government of Canada website.

The maximum monthly OAS benefit payment for the first quarter of 2022 is $ 642.25. The OAS annuity payment rates are reviewed in January, April, July and October and adjusted as necessary to reflect any increases in the cost of living according to the consumer price index.

New for 2022, seniors aged 75 and over will receive an automatic 10 percent increase in their AHV pension from July 2022. According to a statement from the federal government, this is the first permanent increase in the AHV pension since 1973.

display

Article content

Unfortunately, retirees with individual net income greater than $ 81,761 in 2022 at the time of filing their 2022 tax return may have to repay part or all of the maximum OAS pension amount. If the retiree’s income exceeds $ 133,141 in 2022, they must repay all OAS benefits received in 2022. This is commonly referred to as “Clawback” or more formally as OAS “Pension Recovery Tax”. OAS services are also taxable. For more information about federal taxation, call the Canada Revenue Agency at 1-800-959-8281.

Your state pension amounts may differ from the above figures depending on your personal circumstances and when you start drawing your pension. If you have any questions about your own situation, please contact the relevant government agencies as detailed above or visit their websites.

John Archer is a portfolio manager and investment advisor at RBC Dominion Securities in Montreal. www.johnarcher.ca. He can be contacted by email at [email protected] or by phone at 514-878-5040.

  1. None

    Delean: Despite pandemic costs, taxpayers will not be put under pressure in 2022

  2. A New Jersey car crosses Quebec at the border crossing in Lacolle, Que., South of Montreal, Monday August 9, 2021.  A Canadian living in the United States asked Paul Delean about some of the tax implications for retirees moving to Quebec.

    Delean: Questions about Returning to Quebec, When to Withdraw RRSP

display

Remarks

Postmedia advocates a lively but civil discussion forum and encourages all readers to share their views on our articles. It can take up to an hour for comments to be moderated before they appear on the site. We ask that you keep your comments relevant and respectful. We turned email notifications on – you will now receive an email whenever you’ve received a reply to your comment, there’s an update on a comment thread you’re following, or when a user follows a comment. Please refer to our Community Guidelines for more information and details on how to customize your email settings.


Source link

Share.

Comments are closed.