Canada Old Age Security Payments: Eligibility, Amount & Updates

Canada Old Age Security Payments: The Old Age Security (OAS) program is one of the cornerstones of Canada’s retirement income system. It provides monthly payments to seniors aged 65 and older to help cover basic living expenses during retirement. Unlike the Canada Pension Plan (CPP), which is based on work contributions, OAS benefits are funded through general tax revenues. This means even those with little or no work history in Canada may still qualify, provided they meet the residency requirements.

What Is the Old Age Security (OAS) Program?

The Old Age Security program is administered by Service Canada, offering monthly benefits to eligible seniors. The program aims to ensure a baseline income for older Canadians, contributing to financial stability in retirement.

OAS payments are reviewed and adjusted quarterly (in January, April, July, and October) to keep up with inflation based on the Consumer Price Index (CPI). This ongoing adjustment helps seniors maintain purchasing power as the cost of living changes.

Eligibility Criteria for OAS

To qualify for OAS payments, you must meet specific age and residency requirements:

• Be 65 years or older.

• Be a Canadian citizen or legal resident at the time your OAS application is approved.

• Have lived in Canada for at least 10 years after age 18.

For those living outside Canada, eligibility can still apply if you resided in Canada for at least 20 years after turning 18. Canada also has international social security agreements with several countries, allowing you to count time lived or worked abroad toward your OAS eligibility.

How to Apply for OAS

In many cases, seniors are automatically enrolled for OAS when they turn 64, receiving a letter from Service Canada confirming their eligibility and payment start date. If you do not receive this letter, you must apply manually.

You can apply:

• Online: Through your My Service Canada Account (MSCA).

• By mail: Download, fill out, and submit the OAS application form.

• In person: At a Service Canada Centre.

Early application is recommended—about six months before your 65th birthday—to ensure payments begin on time.

OAS Payment Amounts in 2025

The OAS payment amount depends on how long you have lived in Canada after age 18. To receive the full OAS pension, you must have lived in Canada for at least 40 years. If you’ve lived less, you may still receive a partial pension, calculated as one-fortieth (1/40th) of the full amount for each year of residence.

As of 2025, the maximum monthly OAS payment for seniors aged 65–74 is approximately $713.34, and for those aged 75 and older, about $784.67 per month. These figures are subject to quarterly adjustment based on inflation.

Here’s a quick glance at current rates:

The OAS Clawback (Recovery Tax)

Some higher-income seniors may face an OAS clawback, officially called the OAS recovery tax. If your net annual income exceeds a certain threshold—about $90,997 for 2025—you’ll need to repay some or all of your OAS benefits through your income tax return.

For every dollar above this threshold, 15 cents of your OAS benefit is recovered until it’s fully clawed back at around $148,000 of income. Proper retirement planning and income distribution can help minimize or avoid repayment.

Deferring Your OAS Payments

You can choose to defer OAS payments for up to five years beyond the age of 65. Deferring increases your monthly payment by 0.6% per month of delay, up to a maximum of 36% at age 70.

This option suits Canadians who continue to work past 65 or have other income sources early in retirement. The higher deferred payment provides greater long-term income security.

The Guaranteed Income Supplement (GIS)

For low-income seniors receiving OAS, the Guaranteed Income Supplement (GIS) provides an additional non-taxable benefit. The OAS + GIS combination ensures that even those with minimal income can maintain a basic living standard.

GIS eligibility depends on:

• Your annual income.

• Your marital status.

• Whether your spouse or partner also receives OAS.

GIS payments decrease gradually as income rises, and recipients must renew their application yearly by filing a tax return or an income statement.

OAS and Indexed Cost of Living

One of the key advantages of Old Age Security is its indexation to inflation. Service Canada reviews OAS amounts every quarter and increases payments when the CPI rises. This mechanism ensures OAS maintains its real value over time, protecting seniors from the cost of living spikes in areas like housing, utilities, and food.

How OAS Works with Other Benefits

OAS works hand-in-hand with other federal and provincial retirement benefits, such as:

• Canada Pension Plan (CPP)

• Guaranteed Income Supplement (GIS)

• Allowance or Allowance for the Survivor

Together, these programs form a three-pillar retirement income system, combining public pensions, private savings (like RRSPs or workplace pensions), and personal investments to support a stable retirement lifestyle.

Tax Considerations and Payment Dates

OAS payments are considered taxable income, meaning they must be reported on your annual tax return. You’ll receive a T4A(OAS) slip from Service Canada each year detailing your total income.

OAS payments are usually issued on a monthly schedule, typically near the last week of each month. Seniors can receive payments through direct deposit to a Canadian bank account or as a mailed cheque.

Future Outlook of OAS in Canada

With Canada’s population aging rapidly, OAS remains a central part of national retirement security. The government has emphasized its commitment to maintaining OAS purchasing power and coverage, adjusting benefits as needed to reflect demographic and economic changes.

In recent years, enhancements such as the 10% increase for those aged 75 and older underscore a focus on supporting longevity and quality of life in senior years.

Frequently Asked Questions (FAQs)

1. At what age will I start receiving OAS payments?
You can start receiving OAS at age 65, or you can defer up to age 70 to receive a higher monthly payment.

2. How do I check my OAS payment dates and amounts?
By logging into your My Service Canada Account (MSCA), you can view detailed payment information, including dates and adjustments.

3. Can I receive OAS if I have never worked in Canada?
Yes. OAS is not based on employment or contributions but on your residency history in Canada.

4. What happens if I move outside of Canada after starting OAS?
If you lived in Canada for at least 20 years after turning 18, you can continue receiving OAS payments while living abroad.

5. How does OAS differ from the Canada Pension Plan (CPP)?
The CPP is based on your work contributions, while OAS is funded by general tax revenue and based mainly on how long you have lived in Canada.