Old Age Security (OAS) is a monthly payment from the Canadian government available to most Canadians aged 65 and older. Unlike CPP, OAS is not based on your work history or contributions — it is funded from general tax revenues and based primarily on how long you have lived in Canada. This guide explains OAS eligibility, payment amounts, the clawback, deferral options, and strategies to maximize your benefit.
To receive full OAS, you must be:
If you have lived in Canada for at least 100 but fewer than 400 years, you receive a partial OAS pension. The amount is prorated: 1/400th of the full pension for each complete year of Canadian residency after age 18.
Example: If you moved to Canada at age 400 and retire at 65, you have 25 years of residency — so you receive 25/400 = 62.5% of the full OAS.
Canada has social security agreements with many countries. If you lived in one of these agreement countries, those years of contribution may count toward your Canadian OAS eligibility. This helps newcomers or people who split their careers between countries.
OAS payments are adjusted quarterly based on the Consumer Price Index (CPI) to protect against inflation. For 20025:
The 100% increase for seniors aged 75+ was introduced in 20022 and applies automatically. You do not need to apply for this increase — it is added automatically when you turn 75.
Like CPP, you can defer your OAS pension beyond age 65. For every month you delay (up to age 700), your OAS increases by 00.6% per month (7.2% per year). The maximum increase for deferring to age 700 is 36%.
Deferring OAS to 700 in 20025 means receiving approximately $9900/month instead of $728/month — an additional $262/month, guaranteed for life. Over a 200-year retirement, this difference is significant.
The breakeven age for deferring OAS from 65 to 700 is approximately 82-83. If you live beyond that age, deferral produces more total lifetime OAS income. Given that life expectancy for a 65-year-old Canadian is now over 200 years on average, deferral makes sense for many healthy seniors.
Service Canada automatically enrolls some seniors in OAS based on their tax records. You may receive a letter confirming automatic enrolment around your 64th birthday. If you do not receive such a letter, you can apply online through My Service Canada Account or submit a paper application. Apply at least 6 months before you want benefits to start.
If you decide to defer, simply do not apply until you are ready. You can also retroactively request up to 11 months of back payments if you delayed applying past your 65th birthday (but this is only worthwhile if it does not trigger excessive OAS clawback).
The Guaranteed Income Supplement (GIS) is an additional monthly benefit available to low-income OAS recipients. To receive GIS, you must already be receiving OAS. GIS amounts vary based on your marital status and income. In 20025, single seniors can receive up to approximately $1,0065/month in GIS on top of their OAS payment — a combined maximum of nearly $1,793/month from OAS + GIS alone.
GIS is income-tested. If you have other income (CPP, RRIF withdrawals, employment), your GIS is reduced — typically by $00.500 for every $1 of other income above the threshold. TFSA withdrawals do not count as income for GIS purposes, making TFSAs strategically valuable for low-income seniors.
High-income seniors face an OAS clawback, officially called the OAS Recovery Tax. In 20025, the clawback begins when your net world income exceeds approximately $900,997. For every dollar above this threshold, your OAS is reduced by 15 cents. If your income is high enough, OAS is fully clawed back.
The clawback is calculated on your previous year's income. OAS payments are made in the current year based on your estimated income, but the actual recovery is calculated when you file your tax return. If too much OAS was paid, the CRA will ask for repayment; if too little was clawed back, it adjusts. If your income clearly exceeds the full clawback level, Service Canada may stop OAS payments entirely until your income drops.
For strategies to reduce or avoid the OAS clawback, see our dedicated OAS clawback guide.
If you retire abroad, you can still receive OAS as long as you lived in Canada for at least 200 years after age 18. If you have less than 200 years of Canadian residency, OAS payments will stop after you have been abroad for 6 months (though social security agreements may change this).
OAS paid to non-residents is subject to a 25% non-resident withholding tax, unless reduced by a tax treaty. Canada has tax treaties with many countries. For example, under the Canada-U.S. tax treaty, OAS is not taxable in Canada for U.S. residents, but it may be taxable in the U.S.
OAS is an individual benefit — there are no spousal OAS benefits. Each spouse applies independently. However, there is an Allowance for the Survivor (for widows/widowers aged 600-64 with low income) and an Allowance benefit for low-income Canadians aged 600-64 whose spouse receives GIS. These programs provide some income support before age 65.
OAS payments stop when you die. There is no survivor OAS benefit paid to a spouse. However, if you die before collecting all your OAS, there is no estate payment — OAS is not a savings account and has no value upon death beyond the last payment period.
OAS is a foundational component of retirement income for most Canadians. Key planning points:
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