Top government benefits newcomers need to know about
Credit to Author: Archna Walia| Date: Tue, 10 Jan 2023 15:37:25 +0000
Moving to a new country can be an overwhelming experience, so having a little help is always welcome. In Canada, the federal and provincial governments offer help in the form of various benefits designed to help residents meet basic expenses — be it raising children or ensuring old-age income. Such benefits are also one of the reasons Canada is a preferred destination for immigrants from across the globe.
“It was only because of the government benefits that I was able to enhance my education and kickstart my career in a new country while simultaneously managing the cost of raising a family,” says Balmeet Singh, who immigrated to Canada three years back. Singh is pursuing his master’s degree in supply chain management from Schulich School of Business, York University, with the help of the student financial assistance program.
New to Canada? Here is a list of benefits to be aware of.
Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) supports Canadians after they retire from work with a fixed monthly, taxable amount. Residents who are at least 60 years of age and have made contributions toward CPP during their active work years can access this benefit. The CPP contributions are automatically deducted by employers. Withdrawing the benefit can be deferred to 70 years of age. The amount received every month under CPP depends on several factors, including the amount earned throughout the person’s work life.
READ MORE: Learn how the CPP is being invested for the future benefit of all Canadians in our special guide: Your Financial Future in Canada.
Old Age Security (OAS)
Canadians over 65 years of age can also receive the monthly, taxable Old Age Security (OAS) benefit to manage living expenses, if their annual income is under a certain threshold (in 2022, it’s less than $129,757). The amount depends on the recipient’s time spent in Canada after turning 18 years of age. You must have resided in Canada for at least 10 years. If you lived in Canada for less than 40 years, your payment will be based on your number of years in Canada divided by 40.
While the benefit begins when you turn 65, there is the option to defer it until 70 years. The payment increases after turning 75 years old. In most cases, the beneficiary will automatically be enrolled for the benefit.
Guaranteed Income Supplement (GIS)
The Guaranteed Income Supplement (GIS) further supports low-income seniors who receive or are eligible to receive OAS payments. Seniors who do not meet the income threshold (depending on their marital status) can receive this additional tax-free monthly payment.
CPP Disability Benefit
This financial assistance is for Canadian residents who have made contributions to CPP, and who have a physical or mental disability, or a long-term disability. It is paid to individuals only until they are 65 years of age, after which it is turned to regular CPP benefit. Dependent children of the recipients of the disability benefit may also receive a monthly payment.
Canada Child Benefit (CCB)
The Canada Child Benefit (CCB) is a non-taxable, monthly amount given by the government to parents of children under 18 years of age to help offset some of the expenses of raising children. The monthly amount depends upon the parent’s income and the number of children and is reassessed every year based on your tax return.
If your child is under age 18 with a severe and prolonged physical or mental impairment, you may also be eligible for the child disability benefit.
Canada Learning Bond (CLB)
The Canada Learning Bond (CLB) is an amount the government adds to the Registered Education Savings Plan (RESP) for children (born after 2004) of low-income families. The purpose of the bond is to help pay for the tuition for the child’s education after high school. The lifetime eligibility of the bond is $2,000. To apply, parents need to open a RESP account for their child and are given the option to complete a CLB application.
Student Financial Assistance Program
Each Canadian province offers financial assistance to students enrolled in a full-time or part-time program to help them pay for college or university. These are given in the form of either a loan (which you need to repay), a grant (which you do not have to repay) or both. While the eligibility criteria and details are different for each province, the assistance is usually offered to Canadian citizens or permanent residents.
Find out about student aid in your province here.
Need more information or guidance about government benefits as a newcomer and how to apply? Contact your local immigrant settlement organization to help with this and other aspects of your settlement journey in Canada.
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