OAS
Canada’s retirement income system is built on three pillars: the Canada Pension Plan (CPP), personal savings, and the Old Age Security (OAS) program. While CPP is based on work contributions, OAS is different, it’s a government-funded pension available to most seniors simply for living in Canada.
What Is the Old Age Security (OAS) Program?
The Old Age Security (OAS) program provides a monthly pension to Canadians aged 65 and older. It is funded from general government revenues, not individual contributions. For many seniors, it forms the foundation of their retirement income.
OAS is designed to help ensure a basic level of financial security in retirement, regardless of employment history.
Who Qualifies for OAS?
Eligibility for OAS is based mainly on age and residency in Canada.
Age Requirement
- You must be 65 or older.
Residency Requirement
- To receive the full OAS, you generally need 40 years of Canadian residency after age 18.
- If you’ve lived in Canada for at least 10 years, you may qualify for a partial pension, based on your years of residence.
Legal Status
- You must be a Canadian citizen or permanent resident at the time your OAS is approved.
How Much Will You Receive? (Maximum Amounts in Late 2025)
The OAS amount you receive depends on your residency history, age, and income (high-income earners may see reductions due to the “clawback”).
Here are the maximum monthly OAS pension amounts for the October to December 2025 quarter for those who meet residency and income criteria: Canada+1
| Age Group | Maximum Monthly OAS (Oct–Dec 2025) |
| 65 to 74 | up to $740.09 |
| 75 and over | up to $814.10 (includes the 10% increase for 75+) |
These are the highest standard monthly rates you can receive before considering income adjustments or clawbacks.
Note: If your net world income is above certain thresholds, part or all of your OAS can be recovered through the OAS “clawback.”
Taxation and the OAS Clawback
OAS benefits are taxable. If your income (Line 23400 on your tax return) exceeds a set level, you must repay some or all of your OAS through the OAS Recovery Tax (clawback). The repayment starts once your income passes a threshold that adjusts annually.
Automatic Enrollment: A Helpful Modern Change
Most Canadians turning 65 are now automatically enrolled and receive a letter from Service Canada confirming eligibility and payment details. However, if the government cannot confirm the information, then it may be necessary to apply.
Should You Defer OAS?
You can choose to delay your OAS start date up to age 70. Delaying increases your monthly payment by 0.6% per month, up to a 36% boost if you wait until age 70.
This can make sense if:
- You’re still working past 65
- You expect to live longer
- You want higher monthly income later in retirement
Benefits for Lower-Income Seniors: GIS and Allowances
In addition to the OAS pension, many low-income seniors qualify for the Guaranteed Income Supplement (GIS) (for ages 65 and up), a tax-free monthly benefit, as well as the Allowance (for ages 60–64 with low income or spouses of GIS recipients).
These programs help ensure seniors with limited income can meet basic living costs.
Why the OAS Program Matters
OAS plays a crucial role in reducing poverty among seniors and providing predictable income during retirement. Its design, based on residency rather than work history, ensures broad coverage for Canadians and long-term residents.
Whether you’re planning your own retirement or helping someone else, understanding OAS, especially the current maximum amounts available in 2025 is essential to building a stable financial future.
Brian Madigan LL.B., Broker
Comments 2
The Guaranteed Income Supplement (GIS) is a monthly payment you can get if you are 65 or older not 60 as mentioned above
Author
Thanks for your comment. I have addedc some clarification in terms of commencement dates.
The Supplement starts at 65.
The Allowance for those who qualify starts at 60.