What is Guaranteed Income Supplement?
The Guaranteed Income Supplement (GIS) is a supplementary benefit provided under Canada’s Old Age Security (OAS) program. It aims to provide additional financial support to low-income seniors living in Canada.
GIS plays a crucial role in supporting the financial well-being of Canada’s lower-income seniors, helping to ensure they can cover basic living expenses. The program reflects the country’s commitment to reducing poverty among seniors, ensuring that those with minimal other income sources have a safety net in their later years.
Who is eligible for Guaranteed Income Supplement?
To be eligible for GIS, individuals must be receiving the OAS pension and meet specific income requirements. The benefit is means-tested, which means it is based on annual income, excluding the OAS pension but including most other income sources such as employment earnings, retirement pensions, and investments.
Seniors do not receive GIS automatically when they begin receiving OAS. They must apply separately and provide details about their income. Canadian seniors must also file an annual income tax return to renew their GIS eligibility, as the amount can change based on their reported income.
How much is Guaranteed Income Supplement?
The amount of GIS a person receives varies based on their marital status and combined income. The program is designed to provide more support to those with lower incomes and adjusts payments on a sliding scale. The maximum GIS benefit is higher for single seniors than for couples, and it decreases as other income increases.
GIS payments are made monthly and are adjusted in July each year to reflect changes in living costs based on the Consumer Price Index. This ensures that the benefit remains aligned with economic conditions and inflation.