Money and finances
Manage your finances as you age. Learn about taxes, pensions and benefits, financial planning and financial supports.
Taxes
It’s important to file an annual personal income tax return even if you have no income to report. Here’s why:
- many government benefit programs use your income tax return to determine if you are eligible for benefits
- you may be eligible to receive the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, which is a tax-free payment paid every 4 months
- you may be eligible for refundable tax credits or grants
- pension programs and other benefits automatically renew when you file your tax return (such as Old Age Security, Guaranteed Income Supplement, Allowance and Allowance for the Survivor)
File your tax return by April 30 each year. This is the best way to get the benefits you’re eligible for.
Canada Revenue Agency
The Canada Revenue Agency (CRA) offers a free online course on how to prepare and file a personal income tax return.
If you have trouble preparing your taxes, the Canada Revenue Agency can help.
Filing your tax return
You can prepare and file your tax return on paper or electronically.
If you file a paper form:
- include all information slips that show your income and deductions
- keep a copy of your return for future reference
If you file electronically, use a free online service such as NETFILE.
Tax refunds and payments
You may be eligible for a tax refund. If so, the Canada Revenue Agency (CRA) will send you one or deposit it into your account.
If you owe money, here’s how to pay:
- use My Payment, the CRA’s electronic payment service
- pay through your bank
- include a cheque or money order made out to the Receiver General of Canada when you file (be sure to include your Social Insurance Number on the back of your cheque)
Learn about scams and protect your money.
If you are the executor of an estate, you must file a tax return for the person who died. Go to the “End of life” chapter for details.
Canada Revenue Agency
Tele refund
Payment arrangements
Get help with your taxes
Do you need help to complete your income tax and benefit return? The Canada Revenue Agency’s Community Volunteer Income Tax Program connects volunteers with eligible low-income earners. Volunteers will help prepare your tax return.
To volunteer at a free tax clinic, you need a basic understanding of income taxes.
Find a tax clinic in your area.
Canada Revenue Agency
The Ontario Ministry of Finance hosts free information sessions to help you learn about Ontario taxes, tax credits and benefits.
Find out what topics are covered and how to register for upcoming live virtual sessions at ontario.ca/TaxTalk.
Your rights as a taxpayer
As a taxpayer, you have rights. The Taxpayer Bill of Rights Guide explains them. When you deal with the Canada Revenue Agency (CRA), you have the right to:
- be treated professionally, courteously and fairly
- receive complete, accurate, clear and timely information
If you feel the CRA is not respecting your rights, contact:
Office of the Taxpayers’ Ombudsperson
Pensions and other benefits
The Old Age Security (OAS) Pension program and the Canada Pension Plan (CPP) are Government of Canada programs for seniors. Contact Service Canada to get information about OAS and CPP. When you call:
- make sure you have the number that appears on your OAS or CPP payment, your Social Insurance Number or your Old Age Security card number
- you can ask for your benefits to be directly deposited into your bank account each month (be sure to have your bank account number handy)
To find your bank account number:
- look at the number at the bottom of your cheques
- ask your bank for your account number if you don’t have a chequing account
Service Canada account login
Old Age Security pension
If you are aged 65 and up, you can collect the Old Age Security pension. You must have lived in Canada for 10 years or more since turning 18 to be eligible.
Here’s what you need to know:
- you will receive monthly benefits if you qualify
- you do not need to be retired to receive the pension
- it may start automatically (if you receive a letter to let you know)
- you may need to apply (if you get a letter asking you to apply or the information in the letter is incorrect)
If you are a low-income senior, you may be eligible for other benefits as early as age 60. If you lived or worked in another country that has a social security agreement with Canada, you may be eligible for benefits from Canada or from the other country.
Guaranteed Income Supplement
The Guaranteed Income Supplement is for low-income seniors living in Canada who receive the Old Age Security pension.
Here’s what you need to know:
- it is based on your annual income or the combined annual income of you and your spouse or common-law partner
- you may need to apply
- you will get your first payment the month after you turn 65
- you need to file your taxes on time every year to continue receiving regular payments
Allowance and Allowance for the Survivor
In addition to the Guaranteed Income Supplement, the allowance is for your spouse or common-law partner if they are either:
- living and between 60 and 64 years old
- a widow or widower between the ages of 60 and 64
Service Canada account login
Canada Pension Plan retirement pension
The Canada Pension Plan (CPP) retirement pension is money you will receive every month when you retire. It is a taxable benefit. Everyone who works in Canada (except for Quebec) over the age of 18 pays into the CPP. You and your employer each pay half of the contributions. If you are self-employed, you pay the whole contribution.
Here's what you need to know:
- the amount you receive is based on how much you contributed, for how long and the age you started receiving the pension
- CPP allows you to choose the age you begin your pension
- you can start receiving it as early as age 60 or as late as age 70 (the earlier you start, the smaller the amount you receive)
- you need to apply when you want your CPP benefits to start
- if you don’t apply, you will automatically start receiving CPP retirement benefits at age 70 (if you don’t want to receive benefits you have one year to opt out)
Your CPP benefits are taxable. You must declare them on your annual tax return.
Service Canada account login
Canada Pension Plan disability benefits
You may be eligible for monthly payments from the Canada Pension Plan disability benefit if you:
- are a CPP contributor under the age of 65
- cannot work because of a disability
You may also receive a disabled contributor’s child’s benefit. It is a monthly payment for a child of the person receiving a CPP disability benefit. To be eligible, the child must be either under age 18, or under age 25 and in full-time attendance at a recognized school or university.
Canada Pension Plan survivor’s pension and death benefits
The CPP survivor’s pension is a monthly payment to the legal spouse or common-law partner of a CPP contributor who has died.
Here’s what you need to know:
- you must apply for the survivor pension as soon as possible after the contributor's death (if you delay, you may lose benefits, as the CPP can only make back payments for up to 12 months)
- if you are not capable of applying, a representative (such as a trustee) can apply for you
You may also receive these CPP benefits:
- the death benefit is a one-time payment to the estate or eligible persons, on behalf of a CPP contributor who has died
- the children's benefit is a monthly payment for the dependent children of a contributor who has died (to be eligible, the child must be either under age 18, or under age 25 and a full-time student at a recognized school or university)
Canada Pension Plan pension sharing
Spouses and common-law partners who are both aged 60 and up can share a CPP pension. This may reduce the amount of personal income tax older couples pay.
Canada Pension Plan and benefits if you have lived or are living outside of Canada
You may be eligible for pensions and benefits from Canada and/or from another country because of a social security agreement. This is for people who:
- have lived or worked in Canada and in another country
- are the survivors of a person who has lived or worked in Canada and in another country
An international social security agreement is an international agreement between Canada and another country. It’s designed to coordinate the pension programs of the two countries for people who have lived or worked in both countries.
Employment Insurance benefits
If you want to continue working after age 65 you may be eligible for the same Employment Insurance (EI) benefits as other workers in Canada.
Here’s what you need to know:
- you can receive EI benefits even if you are receiving a pension
- you must meet the conditions to qualify
Service Canada account login
Other Government of Canada benefits
You may also be eligible for other programs, some of which are intended for low-income seniors or for particular groups, such as veterans. Contact Service Canada to find out if you are eligible for a particular program.
Consult the Government of Canada's benefits finder.
Service Canada account login
Program for low-income Ontario seniors
The Ontario Guaranteed Annual Income System (GAINS) is a provincial program that provides a monthly benefit to eligible Ontario seniors.
GAINS payments are provided in addition to your Old Age Security (OAS) pension and any Guaranteed Income Supplement (GIS) payments you may receive from the federal government.
If you currently receive the OAS pension and GIS, you do not have to apply.
Find out if you qualify for GAINS benefits.
Ministry of Finance
Saving for retirement
Everyone should have a financial plan. It’s never too late to get started. A good plan will include your:
- living expenses (now and for the future)
- sources of income
- assets (like your home)
- tax planning
- insurance needs
- investments
You can find free guides online to help you get started. You can also contact a certified financial planner to help. Elder Planning Counselors specialize in working with people 50 years and up.
FP Canada (Financial Planners Canada)
Email: info@fpcanada.ca
Registered Retirement Savings Plan
With a Registered Retirement Savings Plan (RRSP):
- you save money on your own
- your contributions are tax deductible
- the income you earn inside the plan is not taxed when it is earned
- any money you withdraw from your RRSP is taxable
- by law, you cannot hold an RRSP beyond the last day of the year that you turn 71
Lifelong Learning Plan
The Lifelong Learning Plan allows you to take up to $10,000 in a calendar year from your RRSPs. It’s to pay for training or education for you, your spouse or common-law partner. When you withdraw money, you:
- have up to 10 years to repay the amount to your RRSP
- must complete an educational program before the end of the year that you turn 71
Registered Retirement Income Fund
A Registered Retirement Income Fund (RRIF):
- is a fund that gives you income during your retirement
- requires you take out a minimum amount each year
- can be set up with a bank, insurance company or trust company
- can be opened before you turn 71
Tax-Free Savings Account
The Tax-Free Savings Account (TFSA) is a registered account that can hold cash, stocks, bonds, GICs and more. You don’t pay taxes on any investment growth inside your TFSA. Unlike an RSP, you don’t pay taxes when you take your money out.
Here’s what you need to know:
- you can contribute up to the TFSA dollar limit for each calendar year
- you can also contribute any unused TFSA amounts from the previous year
- your federal benefits and credits (such as the Old Age Security Pension, Guaranteed Income Supplement or Employment Insurance) will not be lower because of the amount you withdraw from your TFSA
Contact your bank to learn more.
Read the TFSA Guide for individuals.
Other types of investments
There are other types of investments to help you meet your retirement goals.
GetSmarterAboutMoney offers financial tools to help you make better money decisions. The Ontario Securities Commission Investor Office provides this great resource to help you learn more about:
- Guaranteed Investment Certificates (GICs)
- mutual funds
- more complex investments
- protecting yourself against fraud
Tax credits and financial help
Discover programs that provide financial help or tax credits for medical expenses or modifying your home or car.
Learn about Ontario tax credits and benefits for seniors.
Use the Ontario benefits and programs finder tool.
Financial help for food and housing
Ontario Works
If you’re having a hard time paying your bills, Ontario Works can help cover the costs of basic needs like food and housing. Your payment depends on your family size, income, assets and housing costs.
Visit your local Employment and Social Services office for more information.
Ontario Trillium Benefit
The Ontario Trillium Benefit (OTB) combines the Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit and Northern Ontario Energy Credit. Most recipients receive monthly OTB payments.
Programs to modify your home and vehicle
Home and Vehicle Modification Program
The Home and Vehicle Modification Program provides funding for:
- basic home and vehicle changes or modifications
- people with disabilities that restrict mobility and daily function to continue to live safely in their homes, avoid job loss and participate in their communities
You can apply for:
- home modifications: up to $15,000 (lifetime maximum)
- vehicle modifications: up to $15,000 (every 10 years)
Ontario March of Dimes
Multigenerational Home Renovation Tax Credit
The Multigenerational Home Renovation Tax Credit provides a one-time 15% tax refund for renovation costs up to $50,000 for your home.
Here’s what you should know:
- the renovation costs must be for a secondary unit with a private entrance, kitchen and bathroom
- to be eligible, the resident of the renovated unit must be a family member who is a senior or an adult with a disability
- the maximum $7,500 refund can be used toward the cost of permit fees and renovation supplies and services
This federal tax credit was introduced on January 1, 2023. You may apply for it on your income tax return starting with your 2023 taxes.
Programs to help with medical costs
Medical expense tax credit
The medical expense tax credit is a non-refundable federal and provincial tax credit. You can use it to reduce the tax that you may have to pay. If you paid for health care expenses, you may be able to claim them as medical expenses on your income tax return.
Eligible expenses include products, procedures and services, such as:
- medical supplies
- dental care
- travel expenses
- construction and renovation (such as the purchase and installation of ramps, widening halls and doorways and lowering of kitchen or bathroom cabinets)
Learn about the medical expenses you can claim.
Ontario Seniors Care at Home Tax Credit
This refundable personal income tax credit is designed to help low- to moderate-income seniors aged 70 and up with medical expenses. The tax credit is designed to help you stay in your home longer. Medical expenses can include:
- attendant care (certification required)
- wheelchairs
- hospital beds
- dental, vision and hearing care (dentures, glasses and hearing aids, for example)
The maximum credit is $1,500 (25% of a maximum of $6,000 in medical expenses claimed).
Other programs for low-income seniors
Ontario Senior Homeowners’ Property Tax Grant
This tax grant helps Ontario senior homeowners who pay property taxes and who have low or moderate incomes. It provides up to $500 per household.
Ontario Seniors Public Transit Tax Credit
This tax credit provides up to $450 each year to help with public transit costs for people aged 65 and up. You can claim up to $3,000 in public transit expenses.
Low-Income Energy Assistance Program
This program provides emergency funds for low-income customers who are behind on their bills and may have their service disconnected. You can get up to:
- $650 for your electricity bills (or $780 if your home is heated with electricity)
- $650 for your natural gas bills
Contact your local social service or government agency to find out if you qualify.
Ontario Electricity Support Program
This program helps with your electricity bills if you are in a lower-income household. You can receive a monthly credit based on your household income and household size. The credit is applied directly to your bill.
If you are a caregiver, you may be eligible for the Tax Credit for Caregivers and other benefits. Go to the “For family and caregivers” chapter of this guide.
If you are a senior or person with a disability and you need property tax relief, go to the “Home and housing” chapter of this guide.
Benefits and services for veterans
The following financial programs and services support veterans in Ontario.
Veterans’ pensions and financial help
Disability pensions from Veterans Affairs
Veterans Affairs Canada offers services and benefits to veterans and others. This includes disability pensions and awards for conditions related to service in the:
- Merchant Navy
- Canadian Forces
- Royal Canadian Mounted Police
- support of Canadian Forces in wartime or in Special Duty and Operational Areas
War Veterans Allowance
This allowance is available to eligible low-income veterans of the Second World War or Korean War. Surviving spouses, common-law partners and orphans may qualify for this allowance if the person who has died had completed war service.
Benevolent Funds
Benevolent Funds helps veterans, ex-service personnel and their dependents. The program provides emergency help that is not available anywhere else.
- You can request support for basic needs such as food, shelter and medical care. It’s offered on a one-time only basis.
- Make your application through a Veterans Affairs Canada counsellor using the contact information below.
- You can also apply though your Royal Canadian Legion Service Officer by calling
1-888-207-0930 .
Soldiers’ Aid Commission of Ontario
The Soldiers’ Aid Commission provides financial help to Ontario’s eligible veterans and their families in financial need. The commission supplements support offered by the Royal Canadian Legion and Veterans Affairs Canada. The Commission may provide up to $2,000 per household for essential expenses, including:
- home related items, such as repairs, moving costs, furniture, replacement/repair to roof and/or furnace
- mental health supports and health related items, such as hearing aids, glasses, prescription and dental needs
- specialized equipment, including assistive devices, wheelchairs and prosthetics
- personal items, such as clothing and personal care products
- employment-related supports, including work clothing such as work boots, and short-term courses to help improve access to the job market
Find more information about the Soldiers’ Aid Commission, eligibility and how to apply at ontario.ca/SoldiersAid
Legal help for veterans with disability or pension issues
Bureau of Pensions Advocates
The Bureau of Pensions Advocates is a group of lawyers across Canada. They provide free legal help for veterans who are not satisfied with decisions about their claims for disability benefits.