Are you approaching retirement age and wondering how much you’ll receive from the Canadian government each month? Understanding the Old Age Security (OAS) pension is essential if you’re planning for financial stability in your senior years. OAS is one of the core public pensions offered in Canada, and it provides monthly payments to eligible seniors aged 65 and older.
However, the exact amount you’ll receive isn’t fixed. It depends on a mix of factors such as your age, income, and how long you’ve lived in Canada after turning 18.
In this blog, you’ll learn exactly how much you could receive from July to September 2025, how the amounts are calculated, and how to maximize your benefits. If you’ve been searching for clear, accurate information tailored to your needs, this guide will walk you through everything you need to know about the Old Age Pension in Canada.
What is the Old Age Security (OAS) Pension?
Old Age Security (OAS) is a monthly payment you can receive if you’re 65 years of age or older and meet certain residency requirements in Canada. Unlike the Canada Pension Plan (CPP), OAS is not based on your employment history or contributions. Instead, it’s funded by general tax revenues and is available to eligible seniors across Canada.
To qualify for OAS, you must:
- Be 65 years or older
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years after the age of 18
- Apply if you did not receive an automatic enrollment letter
If you’ve lived in Canada for 40 years or more after turning 18, you may be eligible for the full OAS pension. Otherwise, you might receive a partial pension, calculated based on the number of years you’ve lived in Canada divided by 40.
Key eligibility facts:
- If you’re still working or have a high income, your OAS could be subject to a clawback
- You can receive OAS payments even if you live outside of Canada, provided you meet specific criteria
- Payments are issued monthly and adjusted quarterly based on the cost of living
This program provides a vital financial foundation for many Canadians as they transition into retirement.
How Is the OAS Pension Amount Calculated?
The amount of OAS you receive depends on three primary factors, your age, residency in Canada, and annual net world income. Let’s break down how each factor influences the monthly pension you receive.
Age-based Pension Rates (65 to 74 vs 75 and Over)
OAS payments increase when you reach 75 years of age. Since July 2022, recipients aged 75 and over have received a permanent 10% increase in their OAS pension. As of July to September 2025, here’s how the monthly maximums are split:
- Age 65 to 74: $734.95
- Age 75 and older: $808.45
This boost is automatic and does not affect other benefits such as the Guaranteed Income Supplement.
Residency Duration and Its Effect on Full or Partial OAS
The amount you receive also depends on how many years you’ve lived in Canada after turning 18:
- If you’ve lived in Canada for 40 years or more, you qualify for full OAS
- If you’ve lived in Canada for 10 to 39 years, you’ll receive a partial OAS
Calculated as:
Years lived in Canada ÷ 40 × Maximum Monthly Pension
For example, 20 years of residency equals 50% of the maximum payment.
Annual Net World Income Impact
Your income from all sources, including employment, pensions, and investments, plays a role. If your net world income exceeds a certain threshold, your OAS payment may be reduced or eliminated under the OAS recovery tax.
Here’s a breakdown:
| Factor | Impact on OAS |
| Age 65 to 74 | Eligible for up to $734.95/month if income is under $148,451 |
| Age 75 and over | Eligible for up to $808.45/month if income is under $154,196 |
| Income above threshold | Subject to gradual clawback through OAS recovery tax |
Understanding how these three factors interact is key to estimating your monthly OAS payment accurately.
What Are the Maximum OAS Payment Amounts for 2025?
The Canadian government reviews OAS payment rates every quarter. For the period of July to September 2025, the rates reflect an increase of 1.0% due to inflation. These adjustments ensure that your pension maintains purchasing power as living costs rise.
July to September 2025 Rates for Ages 65–74 and 75+
As of this quarter:
- If you’re aged 65 to 74, the maximum monthly OAS payment is $734.95
- If you’re 75 or older, the maximum monthly OAS payment is $808.45, including the 10% increase introduced in July 2022
Income Thresholds to Receive Maximum Payments
Your 2024 net world income determines your eligibility for these maximum amounts:
- For ages 65 to 74, your income must be less than $148,451
- For ages 75 and over, your income must be less than $154,196
Payments are reduced once your income exceeds the base clawback threshold of $90,997.
Table: OAS Pension Maximum Payments (July–September 2025)
| Age Group | Maximum Monthly Payment | Income Threshold (2024) |
| 65 to 74 | $734.95 | Less than $148,451 |
| 75 and over | $808.45 | Less than $154,196 |
These payments are adjusted quarterly and do not decrease even if the Consumer Price Index (CPI) falls. Staying informed about current rates helps you plan your retirement finances with more certainty.
How Does Income Affect Your OAS Payments?
Your net world income from the previous calendar year plays a major role in determining your OAS eligibility. If your income exceeds a certain amount, your monthly payment will be reduced through the OAS recovery tax.
Key points to consider:
- If your income is below $90,997, you’re not affected by the clawback
- Once your income exceeds $90,997, the clawback starts reducing your OAS
- If your income reaches the maximum income threshold ($148,451 for ages 65-74 or $154,196 for 75+), your pension may be eliminated entirely
It’s crucial to keep your tax filings up to date. The government uses your income information from your tax return to calculate the exact amount you’re eligible to receive each year. If your income fluctuates, your OAS payments may be adjusted accordingly.
What Is the OAS Clawback and When Does It Apply?
The OAS clawback refers to the Old Age Security recovery tax. It’s a mechanism that reduces or recovers OAS payments if your income surpasses a certain level. Understanding how this works can help you manage your retirement income wisely.
OAS Recovery Tax Overview
The clawback begins when your net world income goes over $90,997 in 2024. For every dollar above this threshold, your OAS payment is reduced by 15 cents.
2025–2026 Clawback Threshold
For the benefit period of July 2025 to June 2026, the income thresholds are:
- $148,451 for ages 65–74
- $154,196 for those aged 75 and above
If your income reaches these thresholds, your full OAS amount may be clawed back.
Strategies to Reduce Clawback Risk
To minimize or avoid the clawback:
- Consider splitting pension income with your spouse
- Delay RRSP withdrawals or take them before OAS begins
- Use a Tax-Free Savings Account (TFSA) for income, as it’s not counted toward your net income
- Delay OAS to increase your future monthly payments while managing income today
| OAS Clawback Thresholds (2024 income) | Age 65–74 | Age 75+ |
| Starts at income of | $90,997 | $90,997 |
| Fully clawed back at | $148,451 | $154,196 |
Keeping your income below the clawback threshold is essential if you want to receive the full pension amount.
Can You Delay Your OAS Pension to Receive Higher Payments?
Yes, you can delay your OAS pension for up to 5 years after turning 65, which increases your monthly payment amount. This deferral can be a smart strategy for those with other sources of income in early retirement.
For every month you delay, your payment increases by 0.6%, up to a maximum of 36% at age 70.
For example:
- Delay by 1 year (12 months) = 7.2% increase
- Delay by 5 years (60 months) = 36% increase
| Age When You Start | % Increase | Monthly Payment (Jul–Sep 2025) |
| 65 | 0% | $734.95 |
| 66 | 7.2% | $787.87 |
| 67 | 14.4% | $840.78 |
| 68 | 21.6% | $893.70 |
| 69 | 28.8% | $946.62 |
| 70 | 36% | $999.53 |
However, if you plan to receive Guaranteed Income Supplement, delaying may not be beneficial since you won’t qualify for GIS without OAS.
What Is the Partial OAS Pension and Who Qualifies for It?
If you haven’t lived in Canada for a full 40 years after turning 18, you may still qualify for a partial Old Age Security pension. This portion is calculated based on your total years of residence in Canada after the age of 18, divided by 40.
To qualify:
- You must have lived in Canada for at least 10 years after age 18.
- You will receive 1/40th of the full pension for each full year you lived in Canada.
For example:
- If you lived in Canada for 20 years, you’ll receive 50% of the full pension.
- If you lived for 30 years, you’d get 75% of the full amount.
Partial pensions are ideal for those who immigrated to Canada later in life but still meet the minimum 10-year requirement. However, if you plan to move abroad, ensure you’ve lived in Canada for at least 20 years after age 18 to continue receiving OAS while outside the country.
This formula ensures fair support for all Canadian residents based on how long they’ve contributed to the country’s society through residency.
What Additional Benefits Can You Get Alongside OAS?
In addition to your monthly Old Age Security payments, the Canadian government offers three supplementary benefits to support low-income seniors. These benefits are non-taxable, unlike the OAS pension itself.
Guaranteed Income Supplement (GIS)
GIS is available if:
- You receive the OAS pension
- You are 65 years or older
- Your annual income is below the GIS threshold
Allowance (ages 60–64)
You may qualify if:
- Your spouse or common-law partner receives GIS and full OAS
- You’re between 60 and 64 years of age
- You have lived in Canada for at least 10 years
Allowance for the Survivor
This benefit helps those who have lost a spouse and meet the criteria:
- Aged 60–64
- Not remarried or in a new common-law relationship
- Canadian citizen or legal resident
- Lived in Canada for at least 10 years
These benefits are recalculated every July based on your income from the previous calendar year. They can increase, decrease, or stop depending on your updated income.
Table: GIS and Allowance Maximum Monthly Payments (Jul–Sep 2025)
| Benefit Type | Situation | Max Monthly Payment | Income Threshold |
| GIS (Single) | Single, widowed, or divorced | $1,097.75 | Less than $22,272 |
| GIS (Couple) | Spouse receives full OAS | $660.78 | Less than $29,424 (combined) |
| Allowance | Partner receives GIS and full OAS | $1,395.73 | Less than $41,184 (combined) |
| Survivor Allowance | Surviving spouse | $1,663.81 | Less than $29,976 |
These supports offer financial relief to seniors and their partners who face economic hardships.
How Often Are OAS Payments Updated?
The Canadian government ensures OAS benefits keep up with inflation through quarterly adjustments in January, April, July, and October. These changes are based on the Consumer Price Index (CPI).
Important things to note:
- If the cost of living increases, your OAS payment will increase.
- If the cost of living decreases, your payment will not be reduced.
- All OAS-related benefits, including GIS and Allowances, are adjusted at the same time.
For example:
- From July to September 2025, the OAS amount increased by 1.0%.
- From October to December 2025, it will increase by another 0.7%.
This system protects seniors from losing purchasing power over time, offering predictable, inflation-aligned support in retirement.
Can You Receive OAS While Living Outside Canada?
Yes, you can receive your Old Age Security pension even if you live outside of Canada, as long as certain conditions are met.
To qualify while abroad, you must:
- Have lived in Canada for at least 20 years after turning 18.
- Or, have lived or worked in a country with a social security agreement with Canada and meet the combined residency requirements.
However:
- If you do not meet these conditions, your OAS will stop after six months abroad.
- GIS, Allowance, and Allowance for the Survivor cannot be paid while you are outside Canada for more than six months.
Payments can be received through direct deposit to international bank accounts in eligible countries. Always notify the government of extended travel or moves abroad to avoid overpayments.
Are OAS Payments Taxable?
Yes, OAS pension payments are considered taxable income in Canada. That means they must be included in your annual tax return and may affect your overall tax liability.
Important points:
- Taxes are not automatically deducted. You must request voluntary deductions if desired.
- You can complete the CPP/OAS tax deduction form or do it through your My Service Canada Account.
- T4 tax slips are issued for Canadian residents, while NR4 slips are for non-residents.
If you live outside Canada and are not considered a tax resident, a non-resident withholding tax of 25% is applied to your monthly OAS payments, unless reduced by a tax treaty. Managing your tax obligations properly ensures compliance and avoids future surprises.
What Happens If You Delay, Cancel, or Change Your OAS Start Date?
You have control over when to begin your OAS pension payments. If you haven’t started yet, you can delay your payments to increase your monthly benefit.
Key details:
- You can delay for up to 60 months (5 years) after turning 65.
- You can cancel your OAS within 6 months of receiving your first payment.
- Retroactive payments are available for up to 11 months, but not during any deferred period.
To change your start date, you’ll need to:
- Sign in to your My Service Canada Account
- Call, write, or visit a Service Canada office
Remember, once payments begin, it’s not always simple to reverse your choice, so make your decision carefully based on your financial situation and needs.
What Should You Know Before Applying for OAS?
Before you apply, ensure you understand all the requirements and have the necessary documents ready. Many Canadians are automatically enrolled at age 64, but some will need to apply manually.
You’ll need:
- Information about where you’ve lived since age 18
- Details about your spouse or common-law partner
- Direct deposit banking details
- Proof of reduced income (if recently retired or changed status)
If you’re living outside Canada, use a paper application and send it to your last province of residence. Planning your start date, understanding your eligibility, and organizing your documents ahead of time will streamline the process and help avoid delays in receiving your benefits.
What Happens If Your Situation Changes?
Life changes happen, and it’s important to inform Service Canada of any updates to ensure your OAS and related benefits are accurate and uninterrupted.
Notify the government if:
- You change your address or phone number
- You get married, divorced, or separated
- Your spouse or a dependent dies
- You leave Canada for more than six months
Also, if you’re incarcerated for more than two years in a federal prison, your OAS payments will stop. They will resume the month after your release, but you must inform Service Canada in writing. Failing to update your information may lead to overpayments that you’ll need to repay, and in some cases, penalties may apply.
How to Apply for the Old Age Pension in Canada?
You can apply for the Old Age Security pension in two main ways, online or by paper form. The method you choose may depend on your personal situation and accessibility.
Online via My Service Canada Account
To apply online:
- You must be one month past your 64th birthday
- You must live in Canada
- You must not have already applied or had a third party manage your account
Steps:
- Sign in to your My Service Canada Account
- Select “Manage my benefits”
- Choose “Apply for benefits” or “Delay Receiving OAS/GIS pension”
- Set your desired start date
Paper Application Process
If you’re ineligible to apply online:
- Complete form ISP-3550 (Application for OAS and GIS)
- Include additional consent forms if someone is helping you
- Mail or drop off your application at a Service Canada office
Third-Party Authorization Rules
If you’re assisting someone:
- Complete form ISP-1603 to communicate on their behalf
- If acting as a trustee or power of attorney, use appropriate administrator forms (ISP-3506 or ISP-3507)
- Submit all paperwork and wait for a confirmation letter
| Application Method | Who Can Use It | Required Forms |
| Online | Residents of Canada, age 64+, no power of attorney | None or basic online steps |
| Paper | Those living abroad, or with special situations | ISP-3550 + supporting docs |
Taking the time to apply correctly can help avoid processing delays and ensure your payments begin smoothly.
Conclusion
Navigating the Old Age Security pension system in Canada can seem complex, but with the right information, it becomes manageable. From understanding how much you can receive based on your age, income, and residency to knowing the benefits of delaying payments and applying for supplements like GIS or the Allowance, each piece plays a vital role in your financial security after retirement.
Whether you’re preparing to turn 65 or helping a loved one get ready, planning ahead ensures you make the most of what’s available. Stay informed, monitor income levels, and update your situation with Service Canada to avoid delays or penalties. The Old Age Pension is a cornerstone of retirement in Canada, and understanding it fully puts control in your hands.
FAQs
What is the difference between OAS and CPP in Canada?
OAS is based on residency and age, while CPP depends on how much and how long you contributed while working.
Can I receive both OAS and Guaranteed Income Supplement?
Yes, you can receive both if your income is low enough to qualify for the GIS.
Do I need to apply for OAS or is it automatic?
Many people are enrolled automatically, but if you don’t receive a letter by age 64, you should apply manually.
Will OAS increase if I delay it past age 65?
Yes, your OAS payment increases by 0.6% for each month you delay, up to 36% more at age 70.
Is OAS taxable income in Canada?
Yes, OAS is taxable, and you must include it in your annual income tax return.
What happens to OAS payments if I move abroad?
You can still receive payments if you lived in Canada for at least 20 years after age 18 or qualify under a social security agreement.
Can my OAS payments stop or be reduced?
Yes, payments may be reduced or stopped due to high income, long absences from Canada, or changes in eligibility.
