Sita is 66 years old and had to repay her entire Old Age Security (OAS) pension last year as she earned over the maximum income recovery threshold due to the significant withdrawals from her Registered Retirement Savings Plan (RRSP) for her two-month trip to India in 2022.

This year, she is on a very limited budget and wants to plan for 2023. She knows that the OAS clawback or her repayment would be 15% of the difference between her net income of $97,346 and the minimum threshold amount of $86,912. She currently receives an annual OAS pension of $8,292 and is wondering how much of her OAS pension she will get to keep. Ignore taxes.

For 2023:

Minimum Income Recovery Threshold: $86,912

Maximum Income Recovery Threshold: $141,917

Select one:

a.

$5,973

b.

$3,676

c.

$6,982

d.

$1,565

e.

$6,727