OAS payments: Understanding Old Age Security in Canada is essential if you’re getting close to retirement age or helping a parent or loved one plan their income.
What are OAS payments?
Old Age Security (OAS) is a monthly pension funded by the federal government and paid to most people in Canada once they turn 65. It is not based on your work history or CPP contributions, but mainly on your age, legal status, and how long you have lived in Canada.
OAS is designed to provide a basic layer of retirement income and is often combined with CPP, GIS and private savings. Even if you have never worked or are still working at 65, you can often still receive OAS payments.
Who is eligible for OAS in Canada?
To qualify for OAS pension payments while living in Canada, you generally must:
- Be 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 age 18.
If you live outside Canada, you can still receive OAS benefits if you:
- Are 65 or older.
- Were a Canadian citizen or legal resident the day before you left Canada.
- Have lived in Canada for at least 20 years after age 18.
Time spent working abroad for certain Canadian employers or in countries with social security agreements may also count toward your Canadian residence.
How much can you get from OAS?
The maximum OAS payment amount is adjusted four times a year (January, April, July, October) to keep up with inflation using the Consumer Price Index (CPI). For the October to December 2025 quarter, the maximum monthly OAS pension is about:
- $740.09 per month at age 65 (65–74 range).
- A higher amount for seniors 75 and over, reflecting the ongoing policy of enhanced OAS for older seniors.
Earlier in 2025, maximum OAS amounts per month were in the $713–$735 range for ages 65–74 and about $785–$808 for age 75+, showing how indexing increases benefits over the year. OAS will not decrease even if the cost of living goes down; it only stays the same or rises.
OAS and other senior benefits (GIS, Allowances)
In addition to the basic OAS pension, there are income-tested add-ons for lower‑income seniors:
- Guaranteed Income Supplement (GIS): Monthly payment for low-income OAS recipients aged 65+ who live in Canada.
- Allowance: For low‑income spouses or common‑law partners of GIS recipients aged 60–64.
- Allowance for the Survivor: For low‑income widowed individuals aged 60–64 who have not remarried or entered a new common‑law relationship.
Taken together, OAS + GIS can provide around $1,800 per month in 2025 for a single low‑income senior, which is a major part of retirement income for many Canadians.
When are OAS payments made?
OAS payment dates are usually once a month and follow the same general schedule as other federal benefit payments like CPP. Typical payment dates fall near the end of each month, such as the 25th–29th, with specific 2025 examples including September 25, October 29 and November 26.
Most people receive direct deposit to their bank account, which is the fastest and safest way to get OAS pension payments. If you get paid by cheque, allow extra time for mailing and delivery.
OAS clawback (recovery tax) explained
If your income is high, some or all of your OAS payments may be reduced through the OAS recovery tax, commonly called the OAS clawback. The government looks at your net world income from your tax return and starts to recover OAS above a certain threshold.
For the 2025 tax year, the clawback:
- Begins when net income is above about $93,454.
- Reduces OAS by 15% of every dollar over that threshold.
- Fully eliminates OAS at incomes around $152,000 for ages 65–74, and slightly higher (about $157,000+) for those 75+.
The recovery tax is calculated each year, and you receive a notice showing how much OAS will be clawed back on future payments.
Deferring OAS to increase your payment
You do not have to start OAS payments at 65. You can defer OAS up to age 70, and for every month you delay, your OAS amount increases by 0.6%, or 7.2% per year, up to a maximum 36% boost at age 70.
For example, someone eligible for the maximum of $740.09 at 65 could receive a significantly higher monthly amount if they wait a few years to start. Deferring can be attractive if you expect higher income between 65 and 69 or want to reduce the risk of the OAS clawback later.
How to apply for OAS
Many Canadians are automatically enrolled in OAS and receive a letter before turning 65 that confirms their start date and estimated amount. If you do not receive an automatic enrollment letter, you must apply.
You can apply for OAS pension:
- Online through your My Service Canada Account.
- By mailing a paper application form such as the “Application for the Old Age Security Pension and the Guaranteed Income Supplement.”
Applications can usually be submitted up to 11 months before you want your OAS to start, and it is important to ensure your personal information and residency history are complete and accurate.
Planning your retirement around OAS payments
For Canadians planning retirement, OAS payments are one piece of the income puzzle along with CPP, workplace pensions, RRSPs, TFSAs and personal savings. Some key planning tips include:
- Estimating how much OAS you will receive and whether your income might trigger the clawback.
- Considering whether to defer OAS to 66–70 to increase your monthly amount.
- Managing RRSP/RRIF withdrawals and capital gains to stay under the clawback threshold where possible.
Understanding how OAS benefits, GIS and Allowances fit together can help you or your family build a retirement plan that is more secure and tax‑efficient.
FAQs about OAS payments in Canada
1. At what age do OAS payments start?
Most people can start OAS payments at age 65, but you may choose to delay them up to age 70 for a higher monthly amount.
2. Are OAS payments taxable?
Yes, OAS pension is considered taxable income, and higher‑income seniors may also pay an additional OAS recovery tax (clawback).
3. Can I receive OAS if I never worked in Canada?
Yes, eligibility is based on age, legal status and years of residence, not on employment or CPP contributions, so you may qualify even if you never worked.
4. How often are OAS amounts adjusted?
OAS amounts are reviewed and indexed to inflation every three months (January, April, July, October) using the Consumer Price Index.
5. What happens if I move outside Canada?
You may keep receiving OAS payments abroad if you have at least 20 years of residence in Canada after age 18 and meet the legal status rules when you left.