OAS when spouse still works

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summerby
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OAS when spouse still works

Post by summerby »

My spouse will still be working when I turn 65.
She earns about $55k annually...will this affect my OAS?

thx
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AltaRed
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Re: OAS when spouse still works

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OAS is not based on family income (not means tested). It is based on personal income.... so No.
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ghariton
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Re: OAS when spouse still works

Post by ghariton »

AltaRed wrote: 23 Feb 2018 18:42 OAS is not based on family income (not means tested). It is based on personal income.... so No.
AltaRed is correct in general. I do have one caveat. Once you turn 65, you will have enhanced opportunities for income splitting with your spouse, thereby lowering your effective tax rate. But if she is earning a significant amount, income splitting will become less attractive. If you split less income, your own income may put you into clawback range. Whether this is a consideration or not depends on your details, of course.

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brucecohen
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Re: OAS when spouse still works

Post by brucecohen »

If spouse is still working, do you really need the OAS to meet expenses? If not, consider deferring. Your benefit will increase by 0.6% for each month past 65 that you wait. The maximum bump is 36% for those who wait until 70.
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kcowan
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Re: OAS when spouse still works

Post by kcowan »

It would seem that you need a fairly simple spreadsheet to determine your best course of action.
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