What Is Old Age Security (OAS)?
Old Age Security is a monthly pension paid by the Government of Canada to most Canadians aged 65 and older. Unlike CPP, OAS is not based on your work history — it is funded by general tax revenues and paid to Canadian residents who have lived in Canada for at least 10 years after turning 18. A full OAS pension requires 40 years of Canadian residency after age 18. If you have between 10 and 40 years, you receive a partial pension equal to the number of years divided by 40.
For 2026, the maximum monthly OAS pension for recipients aged 65–74 is $727.67, and for those aged 75 and over it is $800.44 (the 10% top-up introduced in 2022 applies automatically at age 75). OAS is indexed to inflation quarterly using the Consumer Price Index, so it increases in January, April, July, and October each year.
The OAS Clawback (Recovery Tax)
If your individual net income exceeds $90,997 in 2026, your OAS pension is reduced by 15 cents for every dollar above that threshold. This "clawback" is officially called the OAS Recovery Tax. At approximately $148,451 of income, OAS is fully clawed back and you receive nothing. The clawback is calculated on your individual income — not household income — so a couple where one spouse earns $50,000 and the other earns $140,000 would only see the higher earner's OAS reduced.
Deferring OAS to Increase Your Pension
You can defer your OAS pension past age 65 — up to age 70 — and receive a permanently higher monthly amount. For each month you delay after age 65, your pension increases by 0.6%, for a maximum increase of 36% if you wait until age 70. This can be a smart strategy if you are still working at 65, have other income sources, or expect to live well into your 80s. Use this calculator to compare the lifetime value of taking OAS at 65 versus deferring to 70 based on your expected longevity.
Frequently Asked Questions
Do I need to apply for OAS or is it automatic?
OAS is not always automatic. Service Canada may send you a notification letter at age 64 if you are automatically enrolled based on tax records. If you do not receive a letter, you must apply. It is best to apply 6 to 11 months before you want payments to start. You can apply online through My Service Canada Account, by mail, or in person at a Service Canada centre. There is no retroactive payment beyond 11 months for late applications, so applying on time matters.
Can I receive OAS if I live outside Canada?
Yes — Canadians who have lived in Canada for at least 20 years after age 18 can receive OAS while living abroad indefinitely. If you have fewer than 20 years of residency, you can only receive OAS while living in a country that has a social security agreement with Canada, or you must return to Canada. The tax withheld on OAS payments to non-residents is typically 25%, though tax treaties with many countries reduce this rate.
How does OAS interact with CPP and GIS?
OAS and CPP are separate programs that are both received simultaneously. Most Canadians receive both. The Guaranteed Income Supplement (GIS) is an additional benefit paid on top of OAS for low-income seniors — but only if you are already receiving OAS. Your GIS amount depends on your income excluding OAS. The combined OAS plus maximum GIS for a single senior in 2026 can exceed $1,800 per month, providing a meaningful income floor for low-income retirees.
Is OAS income taxable in Canada?
Yes — OAS pension payments are fully taxable as income in the year you receive them. You will receive a T4A(OAS) slip from Service Canada each February showing your total OAS received. Federal and provincial income tax applies at your marginal rate. If you are subject to the OAS clawback, the recovery tax is calculated on your tax return and you may have monthly amounts withheld from your OAS payments to cover it.
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