As Canadians approach retirement, understanding how Old Age Security (OAS) works is essential. It’s one of the three pillars of Canada’s retirement income system, alongside the Canada Pension Plan (CPP) and personal savings. OAS provides a reliable source of income for seniors, regardless of work history. But there are key details you need to know to get the most out of it.
What is Old Age Security (OAS)?
Old Age Security is a monthly pension paid to eligible seniors aged 65 and older. It’s funded by general tax revenues and does not require contributions during your working years, unlike the CPP. Almost all Canadians qualify for at least a partial OAS payment, provided they meet the residency requirements.
Who is Eligible?
You may qualify for OAS if:
- You’re 65 years of age or older
- You’re a Canadian citizen or legal resident
- You’ve lived in Canada for at least 10 years after turning 18 (if residing in Canada at the time of application)
- If applying from outside Canada, you must have lived in Canada for at least 20 years after age 18
🔎 Tip: Canada also has social security agreements with many countries, which may help you qualify if you’ve lived or worked abroad.
How Much Can You Receive?
As of 2025, the maximum monthly OAS payment is : $727.67 for people who are 65 -74 years old and
$800.44 for ages 75 and over (subject to quarterly increases based on inflation).
However:
- You’ll get the full amount if you’ve lived in Canada for 40 years or more after turning 18.
- If you’ve lived in Canada for less than 40 years, you’ll receive a partial pension.
For example, with 20 years of residency, you would receive 50% of the full OAS pension.
As of April–June 2025, the full monthly OAS amounts are:
Ages 75+: $800.44 → 50% = $400.22/month
Ages 65–74: $727.67 → 50% = $363.84/month
When Should You Start?
- You can start receiving OAS at age 65, or choose to defer it up to age 70.
- Deferring increases your monthly payment by 0.6% for each month delayed, up to a 36% boost at age 70.
🔔 Reminder: Once you start, you cannot reverse your decision to defer.
The OAS Clawback: What You Need to Know
If your net annual income is above $90,997 (in 2024), you may have to repay part of your OAS through the OAS Recovery Tax.
- Your OAS is fully clawed back at an income level of around $148,000.
- The repayment rate is 15% of the amount if your income exceeds the threshold.
Guaranteed Income Supplement (GIS)
For low-income seniors, the Guaranteed Income Supplement (GIS) provides additional, non-taxable support.
You may qualify if you:
- Are 65 or older
- Receive OAS
- Have a low income (e.g., under ~$21,456 for single seniors in 2024)
📄 Note: GIS must be applied for and renewed annually.
What If You’re Living Abroad?
You can still receive OAS outside Canada if:
- You lived in Canada for at least 20 years after age 18, or
- You qualify under a social security agreement
Payments can be sent to most countries around the world.
How to Apply
- Many people are automatically enrolled, but not everyone.
- You can apply online through Service Canada or by mail.
- It’s best to apply 11 months before you turn 65.
Is OAS Taxable?
Yes — OAS is considered taxable income. You may choose to have tax withheld at source to avoid surprises at tax time.
Final Thoughts about Old Age Security
OAS is a cornerstone of financial security for seniors in Canada, but it’s not one-size-fits-all. Factors like income level, residence history, and when you start your payments all influence how much you’ll receive. By understanding the ins and outs of the program — and planning accordingly — you can maximize your benefits and enjoy a more secure retirement.
