Old Age Security (OAS)
OAS is a monthly pension from the federal government for Canadians aged 65 and older. Unlike CPP, it is not based on how much you worked or earned. It is based on how long you lived in Canada. Most people are enrolled automatically.
Who Qualifies
Full pension (40 years): If you lived in Canada for 40 or more years after age 18, you receive the full OAS amount.
Partial pension (10-39 years): You receive 1/40th of the full amount for each year of Canadian residency after age 18. For example, 25 years of residency gives you 25/40ths (62.5%) of the full OAS.
Social security agreements: If you lived in a country that has a social security agreement with Canada, that time may count toward the 10-year minimum. Canada has agreements with over 60 countries.
How to Get OAS
Automatic enrollment (most people):
Service Canada uses your tax filing and government records to determine eligibility. If you qualify, you receive a notification letter around your 64th birthday confirming that your OAS pension will start the month after you turn 65. You do not need to do anything except make sure your address and banking information are up to date.
Manual application (if no letter received):
If you have not received a notification letter by one month after your 64th birthday, you need to apply manually. Apply at least 6 months before you want payments to start.
Service Canada can backdate your OAS for up to 11 months if you applied late. Beyond that, any missed payments are lost permanently.
Payment Amounts (April to June 2026)
OAS amounts are adjusted quarterly (January, April, July, October) based on the Consumer Price Index. They never decrease even if the CPI goes down.
Deferring OAS
You can defer your OAS for up to 5 years after age 65. Every month you wait increases your monthly payment by 0.6%, for a maximum 36% increase if you start at age 70. This increase is permanent for the rest of your life.
Deferral makes sense if:
Deferral does NOT make sense if:
The OAS Clawback
If your net income exceeds approximately $90,997 in 2026, you must repay a portion of your OAS. This is called the OAS pension recovery tax (commonly known as the clawback). You repay 15 cents for every dollar of income above the threshold.
Full clawback: OAS is fully clawed back at approximately $148,000 (age 65-74) or $157,923 (age 75+).
The clawback is calculated based on the previous year's tax return and applied to OAS payments from July to June. For example, if your 2025 income exceeded the threshold, your OAS is reduced from July 2026 to June 2027.
Strategies to reduce the clawback: Withdraw from TFSAs instead of RRSPs/RRIFs (TFSA withdrawals do not count as income), split pension income with your spouse, time large RRSP withdrawals carefully, and consider deferring OAS if you will have high income between 65 and 70.
The 75+ Increase
The month after you turn 75, your OAS pension automatically increases by 10%. This bump was introduced in 2022 to help older seniors with rising costs. You do not need to apply for it. The increase does not affect your GIS amount.
If you deferred your OAS, the 10% increase stacks on top of your deferral bonus. For example, if you deferred to 70 (36% bonus) and then hit 75 (10% more), your total OAS would be roughly 50% higher than the standard age-65 amount.
Ontario GAINS Supplement
On top of federal OAS and GIS, Ontario provides its own supplement called the Guaranteed Annual Income System (GAINS). This pays up to $87 per month for single seniors or $174 per month for senior couples with very low private income (under $4,176 per year for singles, under $8,352 for couples).
GAINS is automatic if you receive GIS and live in Ontario. You do not need to apply separately. It arrives with your OAS/GIS payment each month.