Updated: April 2025  |  bremo.io financial guides

Old Age Security (OAS) Guide Canada 2025 — Eligibility and Amount

Old Age Security (OAS) is Canada's largest retirement program. Unlike CPP, you do not need to have worked or made contributions to qualify. OAS is funded through general tax revenues and paid to most Canadians aged 65 and older. Understanding how OAS works is essential for retirement planning.

What Is OAS?

OAS is a monthly pension paid by the federal government to Canadians 65 and older who meet the residency requirements. It is not connected to your employment history. Even someone who never worked a day in Canada can qualify based on years of Canadian residency.

How Much Is OAS in 2025?

OAS amounts are reviewed quarterly and adjusted for inflation using the Consumer Price Index. For the first quarter of 2025:

These are the maximum amounts. If you have lived in Canada for fewer than 40 years after age 18, your OAS will be prorated accordingly.

OAS Eligibility Requirements

To receive the full OAS pension, you must:

• Be 65 years of age or older
• Be a Canadian citizen or legal resident at the time your application is approved
• Have lived in Canada for at least 40 years after age 18

Partial OAS is available if you have lived in Canada for at least 10 years after age 18. You receive 1/40th of the full pension for each complete year of Canadian residency after age 18.

OAS for Canadians Who Lived Abroad

If you lived outside Canada, you may still qualify under certain conditions. Canada has social security agreements with many countries that can help count years of foreign residency toward the 10-year minimum. If you live outside Canada and receive OAS, a 25% non-resident withholding tax applies unless you live in a country with a tax treaty that reduces this rate.

The OAS Enhancement at Age 75

Since July 2022, seniors aged 75 and older automatically receive a permanent 10% increase in their OAS benefit. This was introduced to recognize the greater financial pressures faced by the oldest seniors. You do not need to apply — the increase is automatic.

Deferring OAS to Age 70

Like CPP, you can defer OAS past age 65, up to age 70. For each month you defer, your payment increases by 0.6% (7.2% per year). If you defer to age 70, your OAS will be 36% higher than if you had started at 65. Deferring makes sense if you have substantial other income and want to avoid or minimize the OAS clawback while working.

How to Apply for OAS

Some seniors are automatically enrolled in OAS and receive a notification letter from Service Canada. If you do not receive automatic enrolment, you must apply. Service Canada recommends applying 6 months before your 65th birthday or before your desired start date. You can apply online through My Service Canada Account.

Is OAS Taxable?

Yes, OAS is taxable income and must be reported on your annual tax return. Federal and provincial income tax can be withheld at source. If your income is high enough, you may have to repay part or all of your OAS through the OAS recovery tax (clawback).

OAS and the Clawback

If your net income exceeds a certain threshold, you must repay some or all of your OAS. For the 2024 tax year, the clawback starts at net income of $90,997. You repay 15 cents for every dollar above this threshold. OAS is fully clawed back when income reaches approximately $148,500. See the separate guide on OAS clawback for strategies to minimize it.

OAS and GIS

If you receive OAS and have low income, you may also qualify for the Guaranteed Income Supplement (GIS), which is a non-taxable monthly benefit for low-income OAS recipients. OAS is a requirement for GIS eligibility.