How Much Are Old Age Security (OAS) Payments?

Old Age Security (OAS) is a monthly taxable benefit providing financial support to most individuals aged 65 or older in Canada. It functions as a foundational component of retirement income, offering consistent payments. This article explains how OAS amounts are determined, eligibility criteria, income’s influence on payments, the application process, and other available benefits.

Understanding OAS Payments

The maximum Old Age Security payment varies, adjusted for cost of living changes. For the July to September 2025 quarter, the maximum monthly payment for individuals aged 65 to 74 is $734.95. Those aged 75 and over receive a higher maximum payment of $808.45 per month.

Payments are reviewed and adjusted four times a year: in January, April, July, and October. Adjustments are based on the Consumer Price Index (CPI), ensuring benefit rates keep pace with inflation. If the cost of living increases, monthly payment rates will rise, but they will not decrease if the cost of living goes down.

The full maximum payment is generally available to those who have resided in Canada for at least 40 years after age 18. Individuals with fewer years of residency may still qualify for a partial pension. A partial pension is calculated as one-fortieth of the full OAS amount for each year of residency after age 18.

Eligibility for Old Age Security

Eligibility for Old Age Security is primarily based on age and residency, independent of employment history. To qualify, an individual must be 65 or older and a Canadian citizen or legal resident when their application is approved.

Residency requirements differ depending on whether the applicant lives within or outside Canada. If living in Canada, applicants must have resided in the country for at least 10 years since age 18. For those living outside Canada, a minimum of 20 years of residency after age 18 is required. They must also have been a Canadian citizen or legal resident the day before leaving Canada.

How Income Affects OAS Payments

High-income individuals may experience a reduction in their Old Age Security payments through the “OAS recovery tax” or “clawback.” This tax applies if an individual’s net income exceeds a specified threshold. For 2025, the clawback begins when net income surpasses $93,454.

The recovery tax is calculated at 15 cents for every dollar of net income above the minimum threshold. This means that for every dollar earned over $93,454, the OAS payment is reduced by 15 cents. Net income for this calculation is based on the previous year’s tax return.

The entire Old Age Security benefit can be eliminated if an individual’s income reaches a higher threshold. For those aged 65 to 74, the OAS benefit is fully recovered if their net income reaches approximately $151,668 in 2025. For individuals aged 75 and over, the full clawback occurs at an income of around $157,490.

Applying for Old Age Security

In many cases, individuals may be automatically enrolled in Old Age Security and receive a letter around their 64th birthday. If automatic enrollment does not occur, an application must be submitted.

Individuals can apply online through their My Service Canada Account (MSCA) or by submitting a paper application. To apply online, individuals must be at least one month past their 64th birthday and currently living in Canada. The paper application form, ISP-3550, requires certified true copies of supporting documents.

Required documents typically include proof of age, such as a birth certificate, proof of residency, and a Social Insurance Number (SIN). Processing times can vary; online applications may be processed in a few weeks, while paper applications can take up to four months. Individuals can check the status of their application through their My Service Canada Account.

Additional Benefits with Old Age Security

Individuals receiving Old Age Security may also be eligible for other benefits that provide further financial assistance. The Guaranteed Income Supplement (GIS) is a non-taxable monthly payment available to low-income seniors aged 65 or older who also receive the OAS pension. Eligibility for GIS is based on annual net income, with specific thresholds varying depending on marital status. For example, a single, widowed, or divorced individual’s income must be below $22,272 to qualify for GIS in 2025.

The Allowance is another non-taxable benefit that supports low-income individuals aged 60 to 64. To qualify for the Allowance, an individual’s spouse or common-law partner must be receiving the OAS pension and be eligible for the Guaranteed Income Supplement. The combined annual income of the couple must be below a certain threshold; for instance, less than $41,184 for 2025.

The Allowance for the Survivor is available to low-income individuals aged 60 to 64 whose spouse or common-law partner has died, provided they have not remarried or entered into a new common-law relationship. Eligibility for this benefit also depends on the individual’s annual income being below a specified maximum threshold.