What Is OAS in Canada?

What Is OAS?

Old Age Security (OAS) is Canada's universal retirement pension, funded through general tax revenues rather than payroll contributions. Unlike CPP, which is based on your employment history and contributions, OAS eligibility is based almost entirely on how long you have lived in Canada after age 18. This means stay-at-home parents, immigrants, self-employed Canadians, and people who took career breaks all receive OAS on equal terms with lifelong full-time workers.

OAS Amounts in 2026

October–December 2026 reference rates: full OAS is $762.50/month at ages 65–74, or $838.75 from the month after turning 75. Deferring from 65 to 70 increases the age-65 reference by 36% to $1,037/month. Multiplying these quarterly rates by 12 gives annualized scenarios, not actual calendar-year totals.

Partial OAS generally uses approved Canadian residence years divided by 40; ordinary residence minimums and international agreements also matter. The age-75 increase and deferral are separate adjustments.

Eligibility Requirements

To receive OAS you must be at least 65 years old, be a Canadian citizen or legal resident (or have been one when you left Canada), and have lived in Canada for at least 10 years after age 18. Years lived in Canada before age 18 do not count. Immigrants who arrived in Canada after turning 18 can still receive partial OAS; after 40 years of post-18 Canadian residence, they receive the full benefit.

Canada has international social security agreements with over 50 countries — time lived in those countries may count toward Canadian eligibility. If you live abroad and need fewer than 40 years of Canadian residence, you need at least 20 qualifying years to receive OAS outside Canada.

How to Apply for OAS

OAS is not automatic — you must apply. Service Canada sends a notification letter when you turn 64. You can apply online through My Service Canada Account, by mail, or in person at a Service Canada centre.

Apply at least six months before your 65th birthday if you want to start at 65. If you are eligible for automatic enrolment (Service Canada has your information from tax filings), you will receive a letter confirming enrolment rather than requiring an application. You cannot receive OAS for more than 11 months retroactively — if you delay applying, you may lose benefits.

Deferring OAS: The 36% Permanent Increase

You can voluntarily defer OAS from age 65 to as late as age 70. Each month of deferral adds 0.6% to your benefit permanently — deferring the full five years increases your monthly OAS by 36%. The break-even age is approximately 83–84: if you live past that age, you collect more total OAS by deferring than by starting at 65.

Deferral is most advantageous if you are healthy with a family history of longevity, your income between 65–70 is above the OAS clawback threshold (making OAS at 65 partially or fully clawed back anyway), or you have other income sources to cover ages 65–70. You cannot receive GIS while deferring OAS.

OAS Clawback (Recovery Tax)

If your individual net income exceeds approximately $90,997 (2024 threshold, indexed annually for inflation), you must repay 15 cents of OAS for every dollar above that threshold. OAS is fully eliminated at approximately $148,000 income for someone receiving the standard benefit at 65 (and higher for those who deferred).

The clawback is calculated on your prior year's net income and is collected through monthly tax installments deducted directly from your OAS payments. Effective strategies to reduce or avoid the clawback include pension income splitting with a spouse, strategic TFSA withdrawals (which do not count as income), RRSP meltdown before OAS begins, and timing of capital gains.

GIS — Guaranteed Income Supplement

GIS is non-taxable and household-tested, not a universal linear supplement. October–December 2026 full-OAS reference maximums are $1,138.90/month for a single person and $685.56 for a recipient whose partner receives full OAS or Allowance; other partner situations differ. Prior-year assessable income excludes OAS/GIS and has employment exemptions.

Residence, sponsorship and partial OAS matter. TFSA withdrawals do not count as GIS income. Service Canada determines actual eligibility and payment; do not assume automatic enrollment or a maximum award.

OAS for Non-Residents and Immigrants

If you leave Canada permanently, OAS continues but is subject to a 25% non-resident withholding tax unless a tax treaty reduces this. Common treaty rates include Portugal, Italy, Spain, and Mexico at 15%.

The treaty rate applies automatically when you file an NR5 form. New immigrants who arrived after age 18 accumulate OAS eligibility at 1/40th per year — someone who arrived at 45 and retires at 65 would have 20 qualifying years and receive half the full OAS amount.

OAS vs CPP: Key Differences

OAS is based on residency; CPP is based on contributions from employment income. OAS is funded from general tax revenue; CPP has its own dedicated fund. OAS starts at 65 (deferrable to 70); CPP starts at 60 minimum (also deferrable to 70).

OAS is the same for everyone with full residency; CPP varies by your earnings history. Both are indexed to inflation quarterly. For retirement planning, most Canadians should coordinate the timing of both benefits — deferring CPP to 70 while drawing down RRSP savings is one of the most effective tax and income strategies available.