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Proactive Disclosure

Allowance Program

Applying for the Allowance

1. What is the Allowance and how do I apply?

The Allowance provides money for low-income seniors who meet the following conditions:

If you have not lived in Canada since age 18 for at least 10 years, you may still qualify. Canada has social security agreements with many countries. If you have lived in one of these countries or contributed to its social security system, you may qualify for a pension from that country, from Canada or from both countries. See International Benefits for more information, or contact us at 1 800 277-9914.

When our records show that you may be eligible for the Allowance, we normally send you an application kit. You should complete the application and return it to us as soon as possible. If you don't apply right away, you could lose some benefits.

Normally, individuals must apply for the Allowance on their own behalf. If you are applying for someone else, please contact us for more information.

If you haven't received an application, but you think you may be eligible, please contact us toll-free at 1 800 277-9914.

2. What documents will I need to provide?

Depending on your situation, you will have to provide up to three kinds of documents with your application:

  1. Birth or baptismal certificate -Normally, you have to prove that you are between 60 and 64 years of age by submitting a birth or baptismal certificate. You do not have to provide these certificates if you applied for a benefit under the Canada Pension Plan and sent one of these documents at that time. If you cannot obtain one of these certificates, contact us for information about other documents that may be acceptable.

  2. Marriage certificate or statutory declaration-If you are married, you must provide a marriage certificate. Common-law couples must sign a "statutory declaration" and provide other documentation as proof of your relationship. See below for more details.
  1. Citizenship or immigration documents-If you were not born in Canada, you must submit proof of your legal status in Canada such as citizenship or immigration documents. If you have not lived continuously in Canada since age 18, you must submit proof of all the dates you arrived in Canada and when you left. Usually, you do this with a passport.

The application kit contains more detailed information about these requirements.

How your benefits are calculated

3. How do you calculate my benefits?

We base the Allowance for a payment period (July of one year to June of the next) on the combined annual income from the previous tax year of you and your spouse or common-law partner.

Consult the Old Age Security Payment Rates for current benefit rates and maximum income levels.

4. What is considered to be income?

When applying for the Allowance, you and your spouse must report the following income:

Benefits received from the Old Age Security program are not to be included as income. Consult the application form for more details about what to include as income.

5. What happens if our income drops?

In some situations, like when you stop working or when your pension income drops, we can calculate your Allowance by estimating your combined income for this year, instead of using last year's income. If you or your spouse or common-law partner have a lower income this year for either of these reasons, you should contact us. Your benefits may increase.

Receiving the Allowance

6. When will my Allowance begin?

Usually, your Allowance will begin on the month following your 60th birthday, the month after you've met the residence and income requirements the month your spouse qualifies for the Guaranteed Income Supplement, whichever is the latest. If you apply late and are eligible, you can receive a back payment of up to 11 months plus the month in which we receive your application. You must renew your benefits each year.

7. Can my benefits stop?

We stop paying the Allowance if one of the following things happens:

8. What happens when I turn 65?

At age 65, most people who receive the Allowance will have their benefit automatically changed to the Old Age Security Pension. Again, depending on income, you may then also be able to receive the Guaranteed Income Supplement.

9. What if we separate?

If you have been separated from your spouse or common-law partner, your Allowance will end. The monthly payments of the Allowance stop after a separation of three months or more. If you or your spouse or common-law partner are separated for reasons beyond your control (for example, one of you has to live in a hospital or nursing home), please contact us for more information.

Renewing your benefits

10. Does my Allowance have to be renewed each year?

Yes. The Allowance is based on the combined annual income of you and your spouse or common-law partner. Since your annual income can change from year-to-year, you must renew your Allowance each year.

Most seniors can renew their Allowance automatically simply by filing their tax return by April 30 each year.

If you do not file a tax return, or if we need more information, we will send you a renewal application form in the mail. If you receive a form from us, you must complete and return it as soon as you have all the necessary income information.

Each July, you will receive a letter that tells you the new amount of your monthly payment.

If you do not reapply for the Allowance in the spring, or if your income is now too high for you to qualify for the Allowance, your payments will end with the month of June of that year. Your Allowance also stops when you reach 65 and are eligible for Old Age Security.

11. When do payments arrive?

Payments usually arrive in the last three banking days of each month. The payment dates for the year can be found on our web site. If your payment is late by more than a week, or if you lose your payment, please contact us.

12. Can you send the payment to my bank?

Yes. Normally, we deposit Allowance payments directly into bank accounts through our Direct Deposit service. Payment dates are available on this Web site.

Although payment by cheque is still possible, Direct Deposit offers several advantages:

If you wish to sign up for this service, you can do so over the telephone. Be sure to have this information when you call:

Personal Information

Banking Information

If you have a chequing account, you can find the banking information at the bottom of your cheque.

13. What happens if I move?

If you are planning to move, you must tell us your new address and postal code as soon as possible. This will allow us to update our records and make sure that your payment gets to you on time. Even if your payments are deposited directly into your bank account, we still need to know your new address so we can send you important information and your yearly income tax slip.

As well, if we need to contact you for additional income information, we will have your new address.

You can notify us of a change of address 24 hours a day, 7 days a week by calling our automated telephone system at 1 800 277-9914 (see contact us). You will be asked to provide your Social Insurance Number, your new address and postal code and your telephone number. If you are calling on behalf of another person, we are unable to make any changes unless we have written authorization from that person.

You can also notify us in writing. Refer to the section entitled Regional Offices for the mailing address for your region.

14. Can I receive my Allowance outside Canada?

The Government of Canada designed this income support program to assist low-income seniors living in Canada. For this reason, if you spend more than six months in a row outside Canada, we will only pay you for the month you leave, and for six months after that. Then your payments will stop. For example, if you leave Canada in January, we will send payments until the end of July. After July, the payments will stop. You have an obligation to inform HRDC when you plan to be outside the country for more than six months.

If you stay outside Canada for longer than six months, you can reapply when you return to live in Canada. Most recipients will receive their cheque in the local currency of their country of residence.

15. Will I get cost-of-living increases?

We will increase your Allowance payments to reflect any increases in the cost of living as measured by the Consumer Price Index. We apply any increases every three months-in January, April, July, and October.

The Allowance will not go down if the cost of living falls. A list of the current benefit rates can provide you with more information (see Old Age Security Payment Rates).

Filing your income tax return

16. Is my Allowance taxable?

No. Your Allowance is not considered taxable income. However, you must still report it on your tax return.

Appealing a decision

17. What can I do if I do not agree with a decision affecting my Allowance?

If you disagree with a decision that affects your Allowance, you have the right to an explanation. Contact us first and we can explain the reasons for our decision. If you are still not satisfied with our response, you may request a "reconsideration." To do this, you must send a letter to the Regional Director of Income Security Programs within 90 days of receiving notice of our decision. Please refer to the Regional offices web site for the mailing addresses. In your letter, provide the Regional Director with:

If you are not satisfied with the Regional Director's response, you can appeal the decision to the Office of the Commissioner of Review Tribunals.

Consult our fact sheet on the Old Age Security Appeals Process for more information.

Protecting information about you

18. How is information about me protected?

Your privacy is protected under two Acts.

The Old Age Security Act and Regulations  ensure that only specific agencies authorized by the Minister of Human Resources Development Canada are entitled to review relevant parts of your records. Personal information in your file cannot be given to other agencies or individuals without your consent.

The Access to Information Act also prevents the release of information about you without your consent. However, there are two exceptions: information can be released if it has already been made public or if the release is allowed under the Privacy Act. The government can only use information for the purpose for which it was collected, except to comply with a warrant or subpoena, or to enforce a law.

19. Can I have access to information on my file?

You have the right to review information about you that is kept on file by the Government of Canada. To help citizens get access to information about themselves, the Government has published Info Source: Sources of federal government information. To make a request, you must complete an information request form. These forms and Info Source are available in government offices open to the public, such as a Human Resources Development Canada office (see HRDC Sites Across Canada). They are also available at public libraries, most rural post offices and in Canadian missions abroad.

Other public retirement benefits

20. What other benefits may I or my spouse or common-law partner be eligible to receive?

If you made at least one valid contribution to either the Canada Pension Plan or the Quebec Pension Plan, you will be eligible for a retirement pension at age 65. If you have retired or substantially reduced your hours of work, you could qualify for a reduced retirement pension as early as age 60.

Disability benefits and survivor benefits are also available under the Canada Pension Plan and the Quebec Pension Plan World Wide Web site if sufficient contributions have been made. You must apply to receive any of these benefits.

For more information on the Quebec Pension Plan, visit the Web site of the Régie des rentes du Québec. World Wide Web site

You may be entitled to benefits under the Employment Insurance Program or from other federal programs such as War Veterans Allowances from Veterans Affairs Canada. 

Your provincial or territorial, and municipal governments may offer income assistance and services to seniors such as housing or health coverage (see Provincial and territorial governments). Please contact these governments directly for more information.

For more information on federal, provincial and territorial programs for seniors, visit the Canadian Seniors Policies and Programs Database  Web site.

More Information

For more information about the Old Age Security Program and the Canada Pension Plan, please contact us at the telephone numbers below. The calls, which are free of charge, can be made anywhere from Canada and the United States.

If you are hearing or speech-impaired and use a telecommunications device for the deaf (TDD), please call 1 800 255-4786.

Please have your Social Insurance Number on hand when you call.

Note: This web page provides an overview of the Old Age Security Program and its supplements, the Guaranteed Income Supplement, Allowance and Allowance for the survivor. It is intended to give a general description of how the program works, who is eligible and how benefits are determined. It is not possible, in this space, to provide a comprehensive description of all the details of the complex legislation governing this program. In case of disputes, the wording and provisions of the Old Age Security Act and Regulations prevail.

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