Planning for retirement often comes with a host of questions about government support programs, such as Old Age Security (OAS). Key inquiries include: Do you need to apply for OAS? How much can you expect to receive? What are the OAS payment dates? This guide provides clear answers to these questions and more.
Understanding Old Age Security (OAS)
The Old Age Security (OAS) program is a federally funded monthly payment aimed at supporting Canadians aged 65 and older. Alongside the Canada Pension Plan (CPP) and personal savings, OAS forms a crucial part of financial security for seniors. Both CPP and OAS payments are issued on the same schedule.
OAS Payment Schedule for 2025
Below are the OAS payment dates for 2025:
| Month | Payment Date |
|---|---|
| January | January 29, 2025 |
| February | February 26, 2025 |
| March | March 27, 2025 |
| April | April 28, 2025 |
| May | May 28, 2025 |
| June | June 26, 2025 |
| July | July 29, 2025 |
| August | August 27, 2025 |
| September | September 25, 2025 |
| October | October 29, 2025 |
| November | November 26, 2025 |
| December | December 22, 2025 |
Funding Source for OAS
The Old Age Security program is entirely funded by the federal government, without requiring direct contributions from individual Canadians.
Eligibility for OAS Benefits
To qualify for OAS, you must meet these criteria:
- Be at least 65 years old.
- Hold Canadian citizenship or legal residency status.
Residence Requirements:
- If you currently live in Canada, you must have resided in the country for at least 10 years after turning 18.
- If you reside outside Canada, you need to have lived in Canada for at least 20 years after turning 18.
Employment history has no impact on OAS eligibility; you can receive payments even if you have never worked or are still employed.
OAS Enrollment Process
Enrollment for OAS is typically automatic. Eligible individuals receive a confirmation letter after their 64th birthday. If no confirmation is received, an application may be required via Service Canada online or through a paper form.
Certain individuals, such as widowed seniors or those with a spouse eligible for the Guaranteed Income Supplement (GIS), may qualify for additional benefits.
How Much Will You Receive?
OAS payments are indexed to inflation, with adjustments made quarterly in January, April, July, and October. The exact amount depends on:
- Years of Residency in Canada:
- If you’ve lived in Canada for 40 years since turning 18, you’re eligible for the maximum pension. Partial pensions are available for shorter residency periods (minimum of 10 years in Canada for residents or 20 years for non-residents).
- Age at Which You Start Receiving OAS:
Delaying OAS past 65 can increase monthly payments by 0.6% for each deferred month, up to 36% at age 70.
| Age | Percentage Increase | Estimated Monthly Payment |
|---|---|---|
| 65 | N/A | $718.33 |
| 66 | 7.2% | $770.05 |
| 67 | 14.4% | $821.77 |
| 68 | 21.6% | $873.49 |
| 69 | 28.8% | $925.21 |
| 70 | 36% | $976.93 |
Income and OAS Clawbacks
OAS benefits may be subject to repayment if your net world income exceeds the yearly threshold. For 2024, the repayment threshold starts at $90,997, with 15% of the excess income being clawed back.
Example:
If your income is $120,000, you would repay 15% of $29,003 (the difference between $120,000 and $90,997), amounting to $4,350.45 annually, or $362.54 per month.
Reducing OAS Clawbacks
To minimize clawbacks:
- Split pension income with a lower-income spouse.
- Base RRIF withdrawals on the younger spouse’s age to reduce minimum withdrawals.
- Consult a financial advisor for tailored strategies.
Guaranteed Income Supplement (GIS)
The GIS provides additional non-taxable payments to low-income OAS recipients. Eligibility depends on prior-year income, with income thresholds varying based on marital status and spousal benefits.
| Scenario | Income Threshold (2024) |
|---|---|
| Single recipient | $22,056 |
| Spouse receives full OAS | $29,136 |
| Spouse does not receive OAS | $52,848 |
| Spouse receives Allowance | $40,800 |
FAQs
Is OAS taxable?
Yes, OAS payments are taxable, and recipients can opt for voluntary tax deductions.
Can I apply for OAS while working?
Yes, you can receive OAS even if you’re still employed.
What happens if I delay OAS past age 70?
There’s no financial benefit to delaying OAS beyond age 70. Apply promptly to avoid losing payments.
