What is Old Age Security (OAS) in Canada?
OAS is a pension paid to eligible Canadians. Find out what affects the amount of the monthly payments you may receive.
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Old Age Security, often referred to as OAS, is a federal-run benefit program that serves eligible Canadians. Canadian citizens and legal residents aged 65 years and older can receive OAS, even if they’re still working or have never worked.
The longer you wait to take advantage of the monthly payments, the more money you may receive. For every month the pension is deferred after age 65, it increases by 0.6%—a 7.2% increase per year of deferral. Inflation is taken into account every quarter as well.
How much OAS could you receive? If eligible to receive OAS, the amount of your payments are based on years of residency in Canada, as well. Your income is considered, too.
Over a certain amount of net income, you may see some or all of your OAS clawed back. This threshold changes each year. If you earned more than $86,912 in 2023, then payments are reduced by $0.15 for every $1 in OAS via the pension recovery tax.
In addition to OAS, you may be eligible for other benefits, including the Canada Pension Plan (CPP) and Guaranteed Income Supplement (GIS) for low-income seniors.
Example: “It may make sense for Azah to hold off on applying for OAS, since her family history shows that women in her family live well past their 80s.”
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Read more on Old Age Security in Canada:
- Delaying CPP and OAS to age 70: Is it worth the wait?
The longer you wait to use CPP and OAS, the more you could earn monthly. But with the recent boosts, is it more tempting to use these benefits?
- Should you apply for OAS even if you have a high income?
If you are a high-income senior whose Old Age Security would be fully clawed back, find out if you should still apply.
- How to avoid OAS clawbacks when you’ve had a temporary increase in income
A one-time bump in Sam’s income triggered an Old Age Security benefit clawback, and he wants to know if there is a remedy.
- “Should I sell off some investments to avoid OAS clawbacks?”
Cam is already feeling heavily taxed in retirement and wonders if he should get rid of his dividend-paying investments to avoid losing Old Age Security benefits.
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