Does Old Age Security Start at 65 or 67?

Old Age Security (OAS) is a Canadian government benefit providing a basic income for seniors. It is a significant part of retirement planning for many individuals in Canada. This article clarifies the OAS eligibility age, other requirements, and the process for initiating payments.

Standard Age for Old Age Security

The standard age to begin receiving Old Age Security (OAS) benefits is 65. Eligible individuals typically start receiving monthly payments the month after their 65th birthday. Confusion about OAS starting at age 65 or 67 often stems from past governmental discussions and proposals.

In 2012, the Canadian government announced plans to gradually increase the OAS eligibility age from 65 to 67, with implementation starting in 2023. However, these proposed changes were reversed by the 2016 federal budget, ensuring the eligibility age remains at 65. Any information suggesting an age of 67 for OAS is outdated or refers to an unimplemented policy.

It is important to distinguish OAS from the Canada Pension Plan (CPP) Retirement Pension. Both are federal government benefits, but they operate under different rules and funding structures. CPP benefits, for instance, can start as early as age 60 with a reduction, or as late as age 70 for an increased amount. OAS is funded through general tax revenues, unlike CPP, which is funded by contributions from employees and employers.

Other Eligibility Requirements

Beyond the age requirement, other criteria determine eligibility for Old Age Security benefits. Residency in Canada plays a significant role in determining both eligibility and the amount of benefit received. To qualify for OAS while living in Canada, an individual must be a Canadian citizen or legal resident when their application is approved, and have resided in Canada for at least 10 years since age 18.

For those living outside Canada, the residency requirement is typically longer, generally requiring at least 20 years of residence after age 18. If an individual has lived in Canada for fewer than 40 years after age 18, they may still receive a partial OAS pension. This partial benefit is calculated at 1/40th of the full monthly pension for each year of residence after age 18.

While initial eligibility for OAS is not income-tested, higher-income seniors may be subject to a recovery tax, often called the “OAS clawback.” This requires individuals whose net income exceeds a certain threshold to repay a portion or all of their OAS benefit. For 2025, the clawback begins if net income exceeds $93,454, with a reduction of 15 cents for every dollar above this amount. The entire OAS pension can be eliminated if income surpasses an upper threshold, which for 2025 is approximately $151,668 for those aged 65-74.

Starting Your Old Age Security Payments

Starting Old Age Security payments typically involves an application, although some individuals may be automatically enrolled. Service Canada, the government department responsible for OAS, aims to proactively enroll eligible seniors. If Service Canada has sufficient information, they may send a notification letter around an individual’s 64th birthday, indicating automatic enrollment.

If a notification letter for automatic enrollment is not received by the month after turning 64, it is necessary to apply for the OAS pension. Applications can be submitted online through a My Service Canada Account or via a paper form. It is advisable to apply at least six months before the desired start date, though applications can be submitted as early as 11 months prior.

Payments typically begin the month after an individual’s 65th birthday, provided the application is approved. However, there is an option to defer receiving OAS benefits for up to five years, until age 70. Choosing to defer results in a higher monthly payment, with an increase of 0.6% for each month of delay, amounting to a 7.2% increase per year, and a maximum increase of 36% by age 70. This deferral can be a strategic choice for those who continue working past 65 or have other income sources, as it can lead to a larger monthly benefit later in retirement.