Old Age Security (OAS) Complete Guide 2025

Updated: March 2025 · 10 min read

Old Age Security (OAS) is Canada's largest public pension program. Unlike CPP, OAS is not tied to your work history or contributions — it is funded from general government revenue and paid to most Canadians aged 65 and older who meet residency requirements. Understanding OAS eligibility, amounts, deferral options, and the clawback rules is essential for any Canadian retirement plan.

OAS Eligibility Requirements

To receive OAS, you must be:

• Age 65 or older
• A Canadian citizen or legal resident at the time your application is approved
• Have lived in Canada for at least 10 years after age 18 (for residents)
• Have lived in Canada for at least 20 years after age 18 if you are living outside Canada when you apply

To receive the maximum OAS benefit, you need 40 years of Canadian residency after age 18. If you have fewer than 40 years, you receive a partial OAS benefit: (years of residency / 40) × full benefit amount.

OAS Benefit Amounts 2025

OAS is indexed quarterly to the Consumer Price Index (CPI). For 2025:

Seniors aged 75 and older receive a 10% permanent increase to OAS (implemented July 2022). This recognizes the higher costs many older seniors face, particularly around healthcare and long-term care.

Deferring OAS to Age 70

You can voluntarily defer OAS beyond age 65 to receive a higher monthly amount. For each month of deferral, OAS increases by 0.6% — up to a maximum of 36% at age 70. Deferral is generally worth considering if:

• You are still working and have high income (avoiding clawback while deferring)
• You expect to live well into your 80s or beyond (break-even is approximately age 83–84)
• You can draw from other sources (RRSP/TFSA) during the deferral period

Unlike CPP, which can be deferred to 70 with a permanent 42% increase, OAS deferral only reaches 36% — but both share the same "break-even" logic.

Automatic Enrollment vs. Application

Service Canada automatically enrolls some seniors for OAS and notifies them by mail at age 64. However, not all Canadians are automatically enrolled. Check your My Service Canada Account starting at age 64 to confirm your enrollment status. If not automatically enrolled, apply at least 6 months before you want payments to begin.

OAS and the Clawback (Recovery Tax)

OAS is subject to a recovery tax (commonly called the "OAS clawback") for higher-income retirees. If your net income exceeds approximately $90,997 in 2025, you must repay 15% of the amount above that threshold. OAS is fully eliminated at approximately $148,000 net income.

The clawback is calculated on your prior year's net income and collected through reduced OAS payments in the following July–June period. Effective planning to keep net income below $90,997 — through TFSA withdrawals, pension income splitting, or managing RRIF withdrawals — can preserve your full OAS entitlement.

OAS Outside Canada

If you plan to live outside Canada in retirement, OAS may still be available to you depending on your residency history and any social security agreements Canada has with your destination country. Non-residents may have OAS subject to a 25% non-resident withholding tax (or lower rate under a tax treaty).

OAS and Other Benefits

Receiving OAS is a prerequisite for most other federal seniors' benefits:

• Guaranteed Income Supplement (GIS) — Non-taxable top-up for low-income OAS recipients
• Allowance — For low-income Canadians aged 60–64 whose spouse receives OAS/GIS
• Allowance for the Survivor — For low-income widowed Canadians aged 60–64

Planning Tip: OAS and RRSP Meltdown

One effective strategy is to draw down your RRSP before OAS begins at 65 or 70. If you retire at 60 but defer OAS to 70, you have a 10-year window to take RRSP withdrawals at lower tax rates, reducing the RRIF balance that will generate mandatory taxable withdrawals after age 71 — withdrawals that could push your income above the OAS clawback threshold.