OAS Payments form the backbone of Canada’s public retirement income system. The Old Age Security (OAS) program provides monthly benefits to seniors aged 65 and older, helping them maintain financial stability after retirement. Funded by general tax revenues—not individual contributions—OAS ensures that Canadians who have lived and worked in the country have a reliable source of income in their later years.
Whether you’re nearing retirement, already receiving payments, or planning ahead, understanding how OAS benefits work can help you make informed decisions and maximize your entitlements.
What Is Old Age Security (OAS)?
The Old Age Security program is a government-managed pension available to most Canadians once they reach 65. It differs from the Canada Pension Plan (CPP), which is contribution-based. OAS eligibility depends primarily on age, legal status, and period of residency in Canada.
In simpler terms, if you’ve lived in Canada for at least 10 years after turning 18, you’re likely eligible to receive OAS pension payments. For those who have lived longer—40 years or more—the payment amount can reach the maximum OAS benefit level.
OAS Eligibility Requirements
To qualify for OAS payments in Canada, applicants must meet specific eligibility conditions, including:
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Be 65 years of age or older.
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Be a Canadian citizen or legal resident at the time of application approval.
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Have lived in Canada for at least 10 years after age 18.
For those living outside Canada, eligibility usually requires a minimum of 20 years of Canadian residency after age 18.
Special agreements called international social security agreements may also help you qualify if you have lived or worked in another country that has a reciprocal agreement with Canada.
How Much Are OAS Payments in 2025?
The amount of your OAS pension depends on how long you lived in Canada after turning 18 and whether you defer your payments. The federal government updates OAS payment rates quarterly—usually in January, April, July, and October—to reflect changes in the Consumer Price Index (CPI).
Below is a summary of the approximate OAS payment amounts for early 2025:
| Age Group | Maximum Monthly Payment (as of Jan 2025)* | Annual Income Limits (Clawback Threshold) |
|---|---|---|
| 65 to 74 | $713.34 | $90,997 |
| 75 and over | $784.67 | $148,179 |
These figures are based on publicly available data from Service Canada. Actual amounts may vary slightly due to inflation adjustments.
Recipients earning above the OAS recovery threshold must repay part or all of their OAS pension through a clawback, also known as the OAS recovery tax.
OAS Payment Dates for 2025
OAS payments are deposited monthly, usually around the third-last banking day of each month. Direct deposit ensures funds arrive promptly in your account. Below are the OAS payment dates for 2025:
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January 29, 2025
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February 26, 2025
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March 27, 2025
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April 28, 2025
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May 29, 2025
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June 26, 2025
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July 29, 2025
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August 28, 2025
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September 26, 2025
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October 29, 2025
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November 26, 2025
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December 23, 2025
Keeping track of these dates can help you plan your monthly budget and manage other retirement income sources smoothly.
Deferring Your OAS to Get Higher Payments
Canadians now have the flexibility to delay OAS benefits for up to five years after turning 65. For every month you defer, your OAS amount increases by 0.6%, resulting in a maximum 36% boost if you wait until age 70 to collect.
This option benefits those who continue working past 65 or who expect to fall into a lower tax bracket later, allowing them to receive higher monthly benefits in the future.
Additional OAS Benefits
In addition to the basic OAS pension, several supplementary benefits exist for lower-income seniors:
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Guaranteed Income Supplement (GIS): Provides extra monthly income for low-income OAS recipients living in Canada.
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Allowance: For spouses or common-law partners aged 60–64 of OAS pensioners receiving GIS.
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Allowance for the Survivor: For surviving partners aged 60–64 with limited income following the death of a spouse or partner.
These additional supports ensure that vulnerable seniors have access to essential financial assistance and live with dignity.
OAS and Taxation
All OAS payments are considered taxable income and must be reported on your income tax return. Those with annual net incomes above the clawback threshold may be subject to an OAS recovery tax, reducing their net benefits.
However, strategic planning—such as income splitting with a spouse, RRSP withdrawals, or delaying OAS—can help minimize taxes and avoid reductions.
How to Apply for OAS Payments
In some cases, Service Canada automatically enrolls eligible seniors for OAS. If you didn’t receive a confirmation letter around your 64th birthday, you can apply manually either online through My Service Canada Account (MSCA) or by mailing a completed paper application.
You’ll need to provide details about your legal status in Canada, residence history, and direct deposit information. Processing times vary but typically take a few weeks.
Tips to Maximize Your OAS Benefits
Here are a few practical tips to make the most of your OAS pension payments:
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Review your residency record to ensure Service Canada has accurate data.
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Consider deferring your OAS if you can afford to wait and want higher lifetime payouts.
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Apply for GIS or Allowance programs if eligible; they can provide hundreds more each month.
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File your taxes every year on time—even if you have no income—to avoid benefit interruptions.
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Stay informed about OAS updates and payment changes due to inflation indexing.
The Role of OAS in Retirement Planning
For most Canadians, OAS payments, combined with the Canada Pension Plan (CPP) and personal savings, form the foundation of a stable retirement income. As life expectancy and living costs rise, understanding how to optimize these public benefits can significantly impact long-term financial well-being.
Proper planning ensures that every senior can enjoy their golden years comfortably and with peace of mind.
FAQs About OAS Payments
1. When do OAS payments start automatically?
If you’re automatically enrolled, your payments usually begin the month after your 65th birthday. Otherwise, you must apply manually.
2. Can I receive OAS while living outside Canada?
Yes, if you’ve lived in Canada for at least 20 years after age 18, you can still receive OAS abroad.
3. What is the OAS clawback?
It’s a recovery tax applied when your income exceeds a set threshold, reducing your OAS benefit for that year.
4. Can I collect both OAS and CPP?
Yes. OAS is separate from the Canada Pension Plan, and most retirees receive both.
5. How often are OAS amounts adjusted?
OAS payments are reviewed and adjusted every quarter (January, April, July, and October) to match consumer price inflation.
Jonathan Blake writes about housing assistance, SNAP, unemployment aid, and federal grants. He focuses on helping low-income families understand how to apply for benefits.