OAS Benefits Canada Guide 2025

Old Age Security explained — eligibility, 2025 payment amounts, deferral bonuses, and the clawback threshold to know.

What Is Old Age Security (OAS)?

Old Age Security is a monthly pension paid by the Government of Canada to most Canadians aged 65 or older. Unlike CPP, OAS is not based on your work history or contributions. It is funded from general tax revenues and is available to any Canadian who meets the age and residency requirements.

OAS is one of the most significant sources of retirement income for Canadians — particularly those who did not work for extended periods or who worked in lower-income jobs where CPP contributions were minimal.

OAS Eligibility Requirements

To qualify for full OAS, you must:

• Be 65 years of age or older
• Be a Canadian citizen or legal resident
• Have lived in Canada for at least 40 years after age 18

If you have lived in Canada for fewer than 40 years, you receive a partial OAS pension: 1/40th of the full amount for each year of Canadian residence after age 18 (minimum 10 years to qualify).

OAS Payment Amounts in 2025

Age / Scenario	Monthly Amount	Annual Total
65 (standard)	~$727/month	~$8,724/year
65–74 (10% top-up for 75+)	~$727/month	~$8,724/year
75+ (automatic 10% increase)	~$800/month	~$9,600/year
70 (maximum deferral)	~$1,012/month	~$12,144/year

OAS is indexed quarterly to inflation, so amounts increase with the Consumer Price Index. The 10% permanent increase for those aged 75+ was introduced in July 2022.

Deferring OAS: Is It Worth It?

You can defer OAS up to age 70, increasing your pension by 0.6% for each month of deferral (7.2% per year, maximum 36% increase at age 70). The break-even point for deferring from 65 to 70 is approximately age 83.

Key considerations for deferring OAS:

• If you have other income sources in early retirement, deferring OAS and CPP reduces tax in those years
• Deferring OAS means 5 fewer years of payments — the math favors those with longer life expectancy
• If you expect your income to exceed the OAS clawback threshold ($90,997), deferring or managing other income sources is crucial

OAS and the Recovery Tax (Clawback)

OAS is subject to a recovery tax — commonly called a "clawback" — if your net income exceeds the threshold. In 2024, the threshold is $90,997. For every dollar above this threshold, 15 cents of OAS is repaid. OAS is fully clawed back at net income of approximately $148,065 (2024 figures).

The clawback applies based on your prior-year net income. Strategies to avoid or minimize it include drawing from TFSAs (not counted as income), income splitting with a spouse, and managing RRIF withdrawals carefully.

How to Apply for OAS

Many Canadians are automatically enrolled in OAS at age 65. Service Canada mails a notification letter if you are automatically enrolled. If you are not automatically enrolled, you must apply through your My Service Canada Account or submit Form ISP-3000. Apply 6–11 months before you want payments to start.

OAS for Canadians Living Abroad

OAS is paid worldwide to eligible Canadian citizens and former residents, provided you lived in Canada for at least 20 years after age 18. Non-resident recipients are subject to withholding tax (typically 25%, reduced by tax treaty).