Old Age Security (OAS) provides financial support for seniors across Canada. In this detailed guide, discover who qualifies, how much you could receive in 2025, and smart strategies to minimize OAS clawbacks.
Table of Contents
What is Old Age Security (OAS)?
Old Age Security (OAS) is Canada’s largest pension program, offering taxable monthly payments to eligible residents and citizens aged 65 and older. Unlike other pensions like the Canada Pension Plan (CPP), OAS is not tied to your work history. The program is funded through general tax revenues, allowing recipients to qualify regardless of their employment status.
Who Qualifies for OAS?
Eligibility for OAS depends on your age, residency, and citizenship status:
Living in Canada
- Be aged 65 or older.
- Be a Canadian citizen or legal resident when your application is approved.
- Have lived in Canada for at least 10 years after turning 18.
Living Outside Canada
- Be a Canadian citizen or legal resident when you left Canada.
- Have lived in Canada for at least 20 years after turning 18.
Special Cases
If you’ve worked abroad or resided in a country with which Canada has a social security agreement, you may still qualify for OAS. Contributions to a foreign social security system can count toward your residency requirement.
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How Much Can You Receive in OAS in 2025?
From October to December 2024:
- Ages 75+: Maximum monthly payment is $800.44.
- Ages 65–74: Maximum monthly payment is $727.67.
These amounts are adjusted quarterly (January, April, July, and October) based on the Consumer Price Index.
Partial OAS Pension
If you’ve lived in Canada for less than 40 years after turning 18, you may qualify for a partial pension. This amount is calculated as 1/40th of the full pension for every year of residence. For example, 30 years of residency would entitle you to 75% of the full OAS pension.
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Deferring OAS for Higher Payments
You can defer OAS payments for up to five years to receive a larger monthly benefit. For each month you delay, your payment increases by 0.6%, up to a maximum of 36% at age 70. However, deferral may disqualify you from other benefits like the Guaranteed Income Supplement (GIS).
How to Apply for OAS
- Automatic Enrollment: Most eligible individuals are automatically enrolled and notified at age 64.
- Manual Application: If not enrolled, apply through your My Service Canada Account or by mailing in an application.
2025 OAS Payment Dates
OAS payments are issued monthly. Here are the dates for 2025:
- January 29
- February 26
- March 27
- April 28
- May 28
- June 26
- July 29
- August 27
- September 25
- October 29
- November 26
- December 22
What is the OAS Clawback?
The OAS clawback, or recovery tax, requires seniors with higher incomes to repay part or all of their OAS benefits.
Clawback Thresholds
- 2025 Threshold: $81,761 (minimum income).
- Maximum Threshold: $133,141 (income where OAS is fully clawed back).
If your income exceeds the minimum threshold, you’ll repay 15% of the difference.
Example:
- Income: $90,000.
- Threshold: $81,761.
- Difference: $8,239.
- Repayment: $8,239 × 0.15 = $1,235.85/year or $102.99/month.
Strategies to Minimize OAS Clawback
1. Split Income with Your Spouse
Reduce taxable income by transferring up to 50% of your pension to your spouse.
2. Use a TFSA
Investment income in a Tax-Free Savings Account (TFSA) is non-taxable and doesn’t count toward your net income.
3. Contribute to an RRSP
Lower your taxable income by contributing to a Registered Retirement Savings Plan (RRSP). Contributions are valid until the year you turn 71.
4. Defer OAS and CPP
Delay OAS and CPP benefits to avoid clawbacks and receive higher payments in future years.
5. Manage Capital Gains
Sell assets with high capital gains before turning 65 to avoid triggering taxable income during OAS eligibility years.
6. Invest Wisely
Choose tax-efficient investments like mutual funds or dividends, which are taxed at lower rates than interest income.
Additional Benefits Related to OAS
Guaranteed Income Supplement (GIS)
- Non-taxable monthly payment for low-income seniors.
Allowance and Allowance for the Survivor
- Available for low-income individuals aged 60–64.
I am currently being clawed back even though I have worked at all for over a year and only receive CPP and what’s left of my OAS after they claw most of it back. CRA knows this through multiple communications but refuse to stop it. What do I do to get it back ?