knowledge topics
OAS Pension Benefits
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Explain how each of the factors may impact the amount of an OAS Pension.1
- Age at which it is commenced
- Length of residency in Canada
- Inflation
- Identify the current annual maximum OAS Pension payable.1
- Estimate an OAS Pension.
- Explain the impact of deferring the OAS Pension.2
- Calculate the impact of deferring the OAS Retirement Pension.2
- Explain the tax treatment of receiving OAS Pension income.
- Explain the OAS Pension Recovery tax (i.e. OAS claw back)
- Definition of net income for OAS pension recovery tax purposes
- Minimum and maximum income recovery thresholds
- Pension recovery tax rate
- Estimate the OAS Pension Recovery Tax.
- Define an OAS Return of Income as required by the Canada Revenue Agency (CRA).3
- Explain how each of the factors may impact the decision of when to commence receiving the OAS Pension, such as:
- Income requirements
- Income and OAS Pension Recovery Tax impact
- Impact on GIS and Allowance eligibility
- Stability of income
- Life expectancy
- Tax impact
- Individual attitudes
- Evaluate how each of the factors may impact the decision of when to commence receiving the OAS Pension.
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
