TORONTO, ONTARIO--(Marketwire -03/30/12)- A number of Canadians aged 54 and under will be affected by changes to Old Age Security (OAS) announced in the Federal Budget. In 10 years the age for OAS eligibility will rise from 65 to 67.

OAS benefits are currently paid to Canadians aged 65 and over; individuals can receive up to a maximum of nearly $6,500 per year based on meeting residency requirements.

According to a report by Harris Decima commissioned by the BMO Retirement Institute, 32 per cent of Canadians aged 25-54 will rely on OAS, the Canadian Pension Plan (CPP) and the Quebec Pension Plan (QPP) as their primary source of retirement income.

Tina Di Vito, Head of the BMO Retirement Institute, advises Canadians to adopt a long-term approach to saving for retirement and understand the right tax strategies to maximize old age security benefits. These strategies, despite the changes announced in the Federal Budget, enable income to be earned from the most advantageous sources.

BMO offers tips on how Canadians can prepare for retirement:

To learn more about retirement income strategies and to read Retirement Institute reports, please visit: http://www.bmo.com/retirementinstitute.

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This study was conducted by Harris/Decima using their proprietary online panel. A total of 1,008 Canadians ages 25 to 64 were surveyed between November 10th and 24th, 2011.

Excerpt from:
Changes to Old Age Security-BMO Retirement Institute Offers Tips on How Canadians Can Prepare for Retirement