How Much Is the Canada Old Age Pension?

The Old Age Security (OAS) pension is a key part of Canada’s public retirement income system, offering a monthly payment to eligible individuals aged 65 and older. Unlike the Canada Pension Plan (CPP), which relies on individual contributions, OAS is financed directly through general tax revenues. It serves as a base upon which retirees can build additional financial security from other sources, such as personal savings and employer-sponsored plans.

Eligibility Requirements

To qualify for the Old Age Security pension, individuals must be at least 65 years old. Eligibility also depends on legal status and residency in Canada. For those living in Canada, applicants must be a Canadian citizen or legal resident and have lived in Canada for a minimum of 10 years after turning 18. If living outside Canada, applicants must have been a Canadian citizen or legal resident on the day they left Canada and resided in Canada for at least 20 years after their 18th birthday. Time working abroad for a Canadian employer, such as the armed forces or a bank, may count towards residency under certain conditions.

Determining Your Old Age Security Amount

The Old Age Security pension amount is determined by years of residency in Canada after age 18. Those who have lived in Canada for at least 40 years after reaching 18 are eligible for the full basic OAS pension. The maximum monthly benefit amount is adjusted quarterly based on the Consumer Price Index. From January to March 2025, the maximum monthly payment is $727.67 for individuals aged 65 to 74. Seniors aged 75 and over receive a 10% enhancement, increasing their maximum monthly payment to $800.44 for the same period.

If an individual has lived in Canada for fewer than 40 years after turning 18, they receive a pro-rated portion. This partial pension is calculated at 1/40th, or 2.5%, of the full monthly pension for each complete year of residency after age 18. For instance, an individual who has lived in Canada for 30 years after reaching 18 would be eligible for 75% of the maximum OAS pension.

Impact of Income on Payments

The Old Age Security pension is subject to a recovery tax, known as the “OAS clawback,” which can reduce or eliminate the benefit for higher-income seniors. This recovery tax applies when an individual’s net income exceeds a specified threshold. The clawback rate is 15 cents for every dollar of net income above the annual threshold. For 2025, the clawback begins when an individual’s net income exceeds $93,454. The income used for this calculation is based on the previous year’s tax return.

For those aged 65 to 74, the OAS pension can be entirely eliminated if their income is approximately $151,668 or higher in 2025. For seniors aged 75 and over, the pension is fully recovered at an income level of approximately $157,490 or more. The recovery tax is typically deducted from monthly OAS payments in the following benefit year, spread out over 12 months.

Additional Benefits for Low-Income Seniors

Canada provides additional income-tested benefits for low-income seniors beyond the basic Old Age Security pension. The Guaranteed Income Supplement (GIS) offers extra financial support to OAS recipients with low income. This non-taxable supplement varies based on marital status and income. As of June 5, 2025, a single senior or one whose partner does not receive OAS could get up to $1,086.88 per month in GIS. If a senior’s partner also receives OAS, the maximum monthly GIS payment is $654.23.

The Allowance assists low-income individuals aged 60 to 64 who are spouses or common-law partners of GIS recipients, or who are widows or widowers. The Allowance amount is determined by the combined income of the couple, or the individual’s income if they are a widow or widower. For instance, the maximum Allowance benefit can reach $1,381.90 per month, provided the combined income falls below a specified threshold, which was $40,800 as of June 5, 2025.

Applying for and Receiving Payments

Applying for the Old Age Security pension is a straightforward process, with some individuals automatically enrolled. Service Canada aims to automatically enroll eligible individuals if sufficient information is available, sending a notification letter the month after an individual turns 64. For those not automatically enrolled, an application is necessary. Applications can be submitted online or by mail. Required documentation generally includes proof of age and residency in Canada. Once approved, payments are issued monthly. Recipients can choose to receive payments via direct deposit or by cheque.