Old Age Security (OAS) is one of the cornerstones of Canada’s public retirement income system. It provides a basic monthly benefit to individuals aged 65 and older, supplementing other sources such as the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP), private pensions, RRSPs, or personal savings.
Standard Eligibility Age: 65
The standard age to begin receiving OAS benefits is 65. Most seniors start collecting this pension at that age. It is important to note that OAS is not paid automatically—you must apply through Service Canada a few months before turning 65.
Unlike the CPP or QPP, eligibility for OAS does not depend on contributions, but rather on residency history in Canada.
Yes, it’s possible to defer OAS until age 70. For every month you delay, your pension increases by 0.6%, up to a maximum of 36% more if you wait the full five years.
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Have other income sources to cover your short-term needs
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Are in good health and expect to live longer
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Want to maximize your guaranteed lifetime income
OAS cannot be deferred beyond age 70, so make sure to apply no later than then.
Residency Requirements
To qualify for OAS, you generally must have:
The longer your Canadian residency, the more likely you are to receive a full pension. Partial benefits may be available through international agreements or proportional calculations.
OAS is a taxable benefit, and starting in 2025, it is clawed back if your net individual income exceeds approximately $90,000.
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Above that threshold, your OAS is reduced by 15% of every additional dollar
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It is fully clawed back when income reaches around $130,000
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This reduction occurs via your tax return, based on annual income
Retirement income planning (e.g., managing RRSP or RRIF withdrawals) can help you reduce or avoid OAS recovery.
While OAS is available to most seniors, several factors affect the amount you receive:
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Full vs. partial pension (based on residency)
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Taxable status and potential clawback
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Timing strategy (starting at 65 vs. deferring to 70)
OAS payments are also indexed quarterly to inflation, helping preserve purchasing power.
Old Age Security provides a foundational retirement income for most Canadians aged 65 and older, based on residency rather than work history. You can delay it to age 70 for a higher monthly benefit, or start at 65—the default age. If your annual income exceeds about $90,000, part or all of the pension may be recovered through taxation.