Old Age Security

The Old Age Security pension (OAS) is available to most Canadians starting at the age of 65, and who meet the requirements: have a legal status in Canada; meet the residence requirements; submit the necessary documents; and complete and sign the application. OAS provides additional benefits to eligible low-income seniors:

• Guaranteed Income Supplement (GIS) – for OAS pensioners
• Allowance – for spouses or common-law partners of pensioners who receive GIS who are aged 60 to 64 (includes the month of your 65th birthday)
• Allowance for the survivor – for widowed spouses or common-law partners who are aged 60 to 64 (includes the month of your 65th birthday)

These benefits are funded from general government revenue, i.e. on a pay-as-you-go basis.

When to apply

You can apply no earlier than 11 months before your 65th birthday. If you have already reached age 65, note that you can receive your pension back to a maximum of 11 months from the date Service Canada receives your application, but no earlier than the month after your 65th birthday.

Deferring your Old Age Security pension: Voluntary deferral?

You do not have to start receiving your OAS pension when you turn 65. You can start receiving it any time after age 65. The longer you delay receiving it, the more money you will receive. Your monthly pension payment will be increased by 0.6 percent for every month you delay receiving it after age 65, up to a maximum of 36 percent at age 70.

If you choose to delay receiving your OAS pension after age 65:

• you will not be eligible for the Guaranteed Income Supplement (GIS) for low-income seniors during the period you are delaying your OAS pension
• your spouse or common-law partner will not be eligible for the Allowance for the period you are delaying your OAS pension. The Allowance is a monthly benefit available to the spouse or common-law partner of an OAS recipient who is eligible for the GIS

To decide when to start receiving your OAS pension, you should consider your personal situation. It may affect other benefits that you, or your spouse or common-law partner could receive. You should take into account your:

• current and future sources of income;
• employment status now and in the future
• health
• plans for retirement

There is no financial advantage in deferring your OAS pension after age 70. In fact, you risk losing benefits. If you are over the age of 70, apply now.

If you wish to defer your OAS pension you may do so by:

• Accessing your My Service Canada account and following the directions, or
• Signing and returning the automatic enrolment letter by mail.

To compensate for the missing OAS payments between ages 65 and 70, you can set-up a declining GIC ladder to bridge the gap.

Income requirements

If your net world income exceeds a threshold amount (for example $81,761 in 2022 income year), you have to repay part or your entire OAS pension. This Recovery Tax is often called the "OAS clawback".

You must repay 15 cents for each dollar of extra income above the threshold.

For the 2022 income year (July 2023 to June 2024 recovery period), you will have to repay your entire Old Age Security if your annual net world income is $134,626 or above.

The threshold amounts change every year. See Old Age Security pension recovery tax for up-to-date numbers.

The Office of the Chief Actuary estimates that in 2023, 8% of OAS pensioners will be affected by the Recovery Tax and that "of this group, an estimated (...) 2.6% of all OAS pensioners that year will have their pensions completely reduced".

Documentation requirements

If you were born outside of Canada, there is a requirement to provide proof of Canadian citizenship or legal status. Immigrants may need to obtain a copy of the "Canadian Immigration Identification Card" they were issued on their original arrival in Canada. Other documents that may be required include a birth certificate and Certificate of Canadian Citizenship.

Once the documents (or certified copies) are obtained, the forms can be taken to the local Service Canada Centre for photocopying and attachment to the application form.

Residency requirements

If you are living in Canada, you must have resided in Canada for at least 10 years after turning 18 years old.

If you are living outside Canada, you must have resided in Canada for at least 20 years after turning 18 years old.

If you are at least 65 years old and neither of the above scenarios applies to you, you may still qualify for an Old Age Security pension from another country, from Canada, or from both countries if you have:

• lived in one of the countries with which Canada has established a social security agreement, or
• contributed to the social security system of one of the countries with which Canada has established a social security agreement.

To see the list of countries with which Canada has a social security agreement, visit Lived or living outside Canada - Pension and benefits.

Applying for the Old Age Security

Automatic enrollment for Old Age Security pension

In April 2013, Service Canada implemented a process to automatically enroll seniors who are eligible to receive the OAS pension.

If you can be automatically enrolled, Service Canada will send you a notification letter the month after you turn 64.

The month after you turned 64 years old

If you did not receive a letter from Service Canada informing you that you were selected for automatic enrolment, the month after you turned 64 years old, you can apply in writing for the OAS pension.

If you wish to start receiving your OAS pension at age 65, you should apply for your OAS pension right away.

Complete and mail the Application for the Old Age Security Pension form (ISP3550) to the nearest Service Canada office. The office addresses are listed on the last page of the form.

Applying for OAS online

If you are not automatically enrolled by Service Canada, you can apply online via Service Canada's website. As of 2020, Service Canada appears to prefer online to paper applications.

Service Canada contact information

To confirm status of application, you can call Service Canada: in Canada and the United States: 1-800-277-9914

OAS payment rates

Full versus partial pension

To get the maximum benefit ("full pension"), you must have resided in Canada for 40 years or more after turning 18. If your residence period is less than 40 years, you will get a partial pension equal to 1/40th (2.5%) of the full pension per full year of residence if you meet eligibility requirements as explained above.

Current amount and indexation

Current amount

If you are eligible for full pension, as of April 2024, the monthly maximum amount is $713.34 if you choose to begin OAS at 65 years old. There is a 10% automatic increase at age 75, currently yielding $784.67 per month.

With voluntary deferral, as of April 2024, the monthly maximum amount is $970.14 (36% more) if you choose to begin OAS the latest, at 70 years old.

Service Canada has a Old Age Security Benefits Estimator where you enter your age and other information to get an estimate of OAS and any GIS.

Indexation

Old Age Security benefit rates are reviewed in January, April, July and October to reflect increases in the cost of living as measured by the All-Items Index from Consumer Price Index (CPI).

As prescribed under the Old Age Security Act, benefit amounts do not decrease. They stay at the same level when there is a decrease in the cost of living.

OAS payment date

OAS is paid monthly. Government of Canada has a benefits payment calendar online.

It includes Old Age Security pension, Guaranteed Income Supplement, Allowance and Allowance for the Survivor.

With direct deposit, your OAS payments can be automatically deposited each month into your bank account in Canada or the United States.

Tax treatment

OAS payments are taxable. Tax is not withheld at source unless you make a request.

Benefits received from the Old Age Security program, including the Guaranteed Income Supplement and the Allowance, are reported on your T4A(OAS) tax slip. Tax slips are generally received by the end of February. See: Tax Slips, from the CRA.

Maximizing benefits

To maximize the total amount of OAS received, there are many factors to consider

1) whether you choose to start receiving OAS at 65 years old or later (see When to apply section)

2) whether your annual income could be greater than the threshold (see Income requirements section).

You need to decide whether you will take OAS at 65 years old or voluntarily take it later, if you can afford to wait.

Here are some scenarios that could impact your decision. You are 64 years old:

Example 1: You plan to work after you are 65 years old and your income is above the threshold ($81,761 in 2022 income year) . Therefore, you could be a candidate to voluntarily defer your OAS and receive more later.

Example 2: You have low income and you plan to be eligible for Guaranteed Income Supplement (GIS). Therefore, you could be a candidate to take OAS at 65 years old, because you need to receive OAS to be eligible for GIS.

Example 3: You are in bad health and/or people in your family tend not to be alive above 80 years old. Therefore, you could be a candidate to take OAS at 65 years old.

Example 4: You can live a couple of years without OAS pension, you are in great health and/or people in your family tend to be alive above 80 years old. Therefore, you could be a candidate to voluntarily defer your OAS and receive more later.

Example 5: You have no savings for retirement and no pension, you are in great health and/or people in your family tend to be alive above 80 years old. Therefore, you could be a candidate to take OAS at 65 years old, since you need the money.

Note that there are many factors to consider.

Actuarial reports

Office of the Chief Actuary produces an actuarial report on the OAS program every three years. The lastest available is for 31 December 2021.

See also

• Canada Pension Plan
• Guaranteed Income Supplement

Further reading

• Financial Wisdom Forum topic: "CPP and OAS"
• Financial Wisdom Forum topic: "Immigrants applying for O.A.S."
• Financial Wisdom Forum topic: "OAS clawback questions"
• Financial Wisdom Forum topic: "OAS voluntary deferral"
• Financial Wisdom Forum topic: "OAS for non residents"

External links

• Quarterly report of Canada Pension Plan and Old Age Security monthly amounts and related figures - Service Canada
• Old Age Security - Wikipedia
• Old Age Security Act
• Rosemary Counter (2023-02-01). "CPP and OAS: How the financial supports affect your retirement plans". The Globe and Mail.