Ottawa, ON – As Canada’s senior population continues to grow, understanding the benefits available to older adults becomes more critical than ever. One of the most vital supports for retirees in Canada is the Old Age Security (OAS) program—a federal government initiative aimed at providing a basic income to seniors regardless of their work history.
In this report, we break down the purpose, eligibility, payment structure, and key updates to the OAS in 2025. Whether you are nearing retirement or planning your long-term financial future, knowing how OAS fits into the bigger picture of Canada’s social support system is essential.
What is Old Age Security (OAS)?
The Old Age Security program is a non-contributory pension funded from general government revenues. Unlike the Canada Pension Plan (CPP), which is based on earnings and work contributions, OAS is based on residency in Canada. It’s available to seniors aged 65 and older who meet specific legal status and residency requirements.
It forms the foundation of Canada’s retirement income system, intended to ensure that older Canadians have a modest base-level income in retirement, regardless of their previous employment history.
Who is Eligible for OAS?
To qualify for OAS, individuals must:
- Be 65 years of age or older;
- Be a Canadian citizen or legal resident at the time of application approval;
- Have resided in Canada for at least 10 years after turning 18.
To receive the full OAS pension, a person must have lived in Canada for at least 40 years after turning 18. Partial pensions are available for those with between 10 and 39 years of Canadian residency.
Canadians living abroad may also be eligible, provided they lived in Canada for at least 20 years and meet citizenship criteria.
OAS Payment Amounts in 2025
The amount you receive from OAS depends on your residency history and income level. As of Q2 2025, the maximum monthly OAS payment is:
- $713.34 for seniors aged 65 to 74
- $784.67 for seniors aged 75 and older
This increase for those 75+ was implemented to reflect growing longevity and rising living costs among older seniors.
OAS is reviewed quarterly and indexed to the Consumer Price Index (CPI) to keep up with inflation. Payments are deposited monthly, usually during the last week of each month.
The Guaranteed Income Supplement (GIS)
Low-income OAS recipients may qualify for an additional benefit known as the Guaranteed Income Supplement (GIS).
To be eligible:
- You must be receiving the OAS pension.
- Your annual income (excluding OAS) must fall below certain thresholds.
As of 2025:
- A single senior with income below $21,456 annually may qualify for up to $1,065.47 per month in GIS.
- Couples may receive a combined benefit if their total income is below a set limit (approximately $28,320 annually).
GIS is non-taxable and must be renewed each year through income tax filings.
OAS Clawback: The Recovery Tax
Higher-income seniors may see a portion of their OAS clawed back through the OAS Recovery Tax, also known as the OAS clawback.
For 2025:
- If your net annual income exceeds $90,997, you will begin to repay part of your OAS.
- The full OAS pension is clawed back at an income level of approximately $148,065.
This mechanism ensures the program remains targeted toward those who need it most, while reducing benefits for higher-income individuals.
Application Process: When and How to Apply
Unlike the CPP, some Canadians are automatically enrolled in OAS if Service Canada has sufficient information on file. If not, individuals must apply for OAS online through My Service Canada Account or by submitting a paper application.
It’s recommended to apply six months before your 65th birthday to ensure timely processing and avoid delays.
Those who wish to defer OAS to receive higher monthly benefits can delay up to age 70, gaining an increase of 0.6% per month (or 7.2% per year), resulting in up to 36% more if you wait until 70.
Deferring OAS: A Strategic Choice
While OAS is available at 65, deferring the benefit up to age 70 can be a smart strategy for those:
- Still working and earning a high income (to avoid clawback).
- Expecting longevity and wishing to secure higher future income.
- Relying on other income sources before drawing government pensions.
This flexibility allows for customized retirement planning, particularly when combined with CPP, workplace pensions, and registered retirement savings.
Recent Updates and Policy Shifts in 2025
Several changes in recent years have shaped how OAS works today:
- Automatic OAS Enrollment Expanded: In 2023, the government began enrolling most Canadians automatically at age 65. In 2025, this now includes immigrants who meet residency and documentation requirements.
- Increased OAS for Seniors 75+: Introduced in 2022 and continuing today, older seniors receive a higher OAS amount to reflect increasing living expenses.
- Digital Processing Improvements: Service Canada continues to digitize its operations. Most OAS-related tasks, including change of address, tax slips, and income updates, can now be done through online portals.
- Review of Income Thresholds: Experts suggest that the 2025 clawback threshold may not reflect the real cost of living in urban centers. Policy discussions are underway to potentially raise this limit or regionalize it in the future.
OAS and Immigrants: What Newcomers Should Know
New Canadians can also qualify for OAS, though they are typically eligible only for partial pensions unless they meet the full residency requirements.
Canada has signed social security agreements with more than 50 countries, allowing immigrants to combine years of residence in other countries toward Canadian benefit eligibility. This is especially useful for seniors who split their working years across borders.
The Future of OAS: Is It Sustainable?
As Canada’s population continues to age—by 2035, seniors will make up nearly 25% of the population—concerns have been raised about the sustainability of OAS.
However, since OAS is funded through general tax revenues and not contributions, it is inherently tied to government fiscal planning rather than an investment fund (like CPP). Long-term projections indicate that while OAS spending will grow, it remains manageable provided GDP and productivity continue to rise.
Possible future policy changes include:
- Adjusting eligibility age.
- Indexing benefits differently.
- Introducing income-based regional thresholds.
A Vital Piece of the Retirement Puzzle
The Old Age Security (OAS) program continues to serve as a critical income support for Canadian seniors. While modest in amount, when combined with CPP, GIS, private pensions, and savings, it helps ensure that aging Canadians can live with dignity and financial stability.
As the population ages and the economy evolves, Canadians are urged to educate themselves about their entitlements and integrate OAS into a broader retirement strategy.
Whether you’re a senior applying for benefits or a younger Canadian planning for the future, staying informed about OAS is more important than ever.
