Old Age Security (OAS) is Canada's largest government pension program, providing a monthly benefit to Canadians aged 65 and older regardless of their employment history. Unlike the Canada Pension Plan (CPP), OAS is not funded through payroll contributions — it is paid out of general government tax revenues. This means you do not need to have worked in Canada, or at all, to qualify. Eligibility is based primarily on age and how long you have lived in Canada after turning 18.
For many Canadians approaching retirement, OAS forms one pillar of retirement income alongside CPP and personal savings. Understanding exactly how much you will receive, when to apply, and how income can affect your benefit is essential to retirement planning. This guide covers the 2025 OAS amounts, eligibility rules, the 10% boost at 75, partial OAS for those with fewer years of Canadian residency, deferral options, and the high-income clawback.
To receive OAS in Canada, you must meet three conditions at the time you apply:
The number of years you have lived in Canada after age 18 determines whether you receive a full or partial OAS pension. Full OAS requires 40 years of Canadian residency after age 18. If you have between 10 and 39 years of residency, you will receive a proportional, or partial, OAS benefit.
OAS payment amounts are adjusted quarterly to reflect changes in the Consumer Price Index (CPI), ensuring benefits keep pace with inflation. For the first quarter of 2025 (January through March), the maximum monthly OAS pension for recipients aged 65 to 74 is $727.67.
This maximum applies to those who have accumulated 40 or more years of Canadian residency after turning 18. If you have lived in Canada for fewer than 40 years (but at least 10), your payment is calculated as a fraction of the maximum:
Partial OAS = (Years of Residency ÷ 40) × Maximum Monthly Amount
For example, someone with 20 years of Canadian residency after age 18 would receive 20/40 = 50% of the maximum, or approximately $363.84 per month in Q1 2025. Someone with 30 years of residency would receive 75%, or approximately $545.75 per month.
If you have fewer than 10 years of Canadian residency after age 18, you do not qualify for OAS in Canada. However, Canada has international social security agreements with many countries that may allow you to combine your periods of residency in Canada and another country to meet the minimum threshold.
Since July 2022, the federal government has provided a permanent 10% increase to OAS payments for Canadians aged 75 and older. This applies automatically — you do not need to apply separately for the enhancement.
For 2025, the maximum monthly OAS payment for those aged 75 and older is approximately $800.44 per month. As with the standard OAS amount, this figure is indexed quarterly to inflation. The 10% boost was introduced to reflect the reality that older seniors tend to face higher out-of-pocket costs for health care and other needs as they age.
If you turned 75 before July 1, 2022, you received the 10% increase automatically on that date. If you turn 75 on or after July 1, 2022, the increase takes effect the month after your 75th birthday.
You are not required to start OAS at 65. You can defer your OAS pension by up to 60 months — meaning you can wait until as late as age 70 to begin collecting. For every month you defer past 65, your monthly benefit increases by 0.6%. If you defer the full five years to age 70, your OAS will be 36% higher than the standard amount and will remain at that elevated level for the rest of your life.
Deferral can be advantageous if you are still working between 65 and 70, have other sources of income, or expect to be subject to the OAS clawback (discussed below) in those years. However, deferral is not always the right strategy. Because OAS is a monthly benefit you forego during the deferral period, it takes a number of years to break even on the deferred amount. Working through these numbers is exactly the kind of planning conversation the team at Swift Accounting in Calgary can help you with.
OAS is subject to a recovery tax, commonly called the "clawback," for recipients whose net world income exceeds a threshold set each year. For 2025, the OAS clawback threshold is $93,454.
If your net income for the year exceeds this amount, you must repay 15 cents of OAS for every dollar of income above the threshold. OAS is fully eliminated when income reaches approximately $151,668 for those aged 65 to 74 (the exact figure depends on the exact OAS amount received).
The clawback is assessed based on your previous year's tax return and is typically withheld from your monthly OAS payments proactively once CRA identifies that you may be affected. If your income fluctuates significantly from year to year, you may owe a clawback in one year and not in another. Strategies such as income splitting, drawing down RRSPs before 65, or timing capital gains can sometimes reduce net income to below the clawback threshold — though these decisions depend heavily on individual circumstances.
Service Canada may enrol you in OAS automatically and notify you by letter approximately three months before your 65th birthday. If you do not receive this letter, or if you have chosen to defer, you will need to apply manually.
Applications can be submitted online through your My Service Canada Account or by mailing a paper application to Service Canada. The recommended timing is to apply at least six months before you want your payments to begin.
If you are already past 65 and have not yet applied, you may be eligible to receive a retroactive lump-sum payment covering up to 11 months of OAS you would have received. Note that retroactive payments are only available from age 65 — they do not apply if you have chosen to defer.
Swift Accounting Calgary works with many clients who are navigating retirement income planning for the first time and need clarity on how OAS fits alongside CPP, RRIF withdrawals, and other income sources.
OAS payments are taxable income and must be reported on your annual T1 personal income tax return. Service Canada will issue you a T4A(OAS) slip each year showing the total amount received. If you are subject to the clawback, the repayment amount is deductible on line 23500 of your return, and the net OAS after clawback is what counts toward your income for most purposes.
If you live outside Canada and receive OAS, non-resident withholding tax may apply, typically at 25% unless reduced by a tax treaty.
OAS is straightforward in concept but can interact in complex ways with your other income, your RRSP/RRIF drawdown strategy, CPP timing, and your overall tax situation. Whether you are approaching 65, weighing whether to defer, or concerned about the clawback affecting your benefit, professional guidance can help you make the most of what you are entitled to. Contact Swift Accounting to speak with a Calgary tax professional about your retirement income plan.
For recipients aged 65 to 74, the maximum OAS pension is $727.67 per month as of Q1 2025. For those aged 75 and older, the maximum is approximately $800.44 per month, reflecting the permanent 10% enhancement introduced in July 2022. Both amounts are adjusted quarterly based on changes to the Consumer Price Index.
Yes. OAS eligibility is based on your age and how long you have lived in Canada after turning 18, not on your employment or contribution history. You do not need to have ever worked in Canada or contributed to CPP to qualify. You simply need to be 65 or older, a Canadian citizen or legal resident, and have at least 10 years of Canadian residency after age 18 (or 20 years if you now live outside Canada).
If your net world income exceeds $93,454 in 2025, you must repay 15% of the amount above that threshold. This is known as the OAS recovery tax or clawback. OAS is fully phased out at an income of approximately $151,668. The repayment is calculated when you file your annual tax return, and CRA may reduce your monthly OAS payments proactively if they expect your income to exceed the threshold based on the prior year.
Deferring OAS to 70 increases your monthly benefit by 36% permanently, which can be worthwhile if you are still earning income between 65 and 70, are in good health with a longer life expectancy, or want to reduce the risk of the clawback in those years. However, deferral is not the right choice for everyone — it takes roughly 11 to 12 years of receiving the higher amount to offset the payments you skipped. A tax professional can help you model the break-even point based on your specific situation.
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