What is a key component of the Old Age Security (OAS) Program that Akshay should be aware of?

A key component of the Old Age Security (OAS) Program is that recipients must undergo a means test to determine the amount of benefits they are eligible to receive. This means that although OAS is available to seniors, the actual payment can be reduced based on their income. Specifically, those with higher annual incomes may have their OAS benefits clawed back, which helps to prioritize support for those who may have less financial security in retirement.

Understanding the means testing aspect is essential for anyone who is planning their retirement income, as it influences how much they can expect to receive from the OAS program based on their overall financial situation. This component is crucial for seniors like Akshay, as it directly affects the net benefits received.

In contrast, the other options introduce key notions that don't align with the nature of the OAS program. While OAS payments are partially taxable, they are not entirely tax-exempt. Moreover, while OAS is available to all seniors over a certain age without requiring contributions, the notion that everyone receives full benefits without regard to income is inaccurate. OAS benefits are indeed adjusted annually for inflation, but the core aspect of means testing is a fundamental part of the program that Akshay should grasp.