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What is Old Age Security (OAS), and how much could you receive? A beginner's guide

By FastBuySale Newsroom · 5 Nov 2026 · 18m ago

Who qualifies for Old Age Security

Old Age Security (OAS) explained in one line: it is a monthly federal pension paid to most Canadians aged 65 or older, whether or not they ever worked. The Government of Canada says employment does not affect eligibility, but income and years of residence in Canada do affect how much you get.

According to Canada.ca, the maximum monthly OAS payment is $762.50 for people aged 65 to 74 and $838.75 for people 75 and over. You can start as early as 65 or as late as 70, and each month you delay after 65 increases payments by 0.6%, up to 36% at age 70. If your net income is above $93,454 (2025), you may have to repay part or all of it through the recovery tax.

You must be 65 or older. If you live in Canada, you must be a Canadian citizen or legal resident when your application is approved and have resided in Canada for at least 10 years since age 18. If you live outside Canada, you must have been a citizen or legal resident on the day before you left and have resided in Canada for at least 20 years since age 18.

Work history does not matter: Canada.ca says you can receive OAS even if you have never worked or are still working. Income does matter. To receive OAS, your annual net world income must be less than $152,062 if you are 65 to 74, or less than $157,923 if you are 75 or older, based on the 2025 thresholds.

Net income here includes private and public pensions, benefits such as EI and workers' compensation, salaries, rental income, RRSP withdrawals, and taxable interest, dividends and capital gains. It excludes OAS itself, the Guaranteed Income Supplement, Allowance payments, RDSP payments and GST/HST credits. You must file a tax return each year to keep receiving OAS.

Time spent working abroad for a Canadian employer can count as residence if you return to Canada within 6 months after the job ends, or turn 65 while still working abroad and maintaining Canadian residence.

Readers evaluating Old Age Security should separate marketing claims from the actual rule text that governs their account or product. When two summaries disagree, the governing document or statute wins. If a rule depends on your age, filing status, or income band, re-check it when any of those facts change. Life events quietly move people across thresholds they last reviewed years earlier.

Educational explainers like this one cannot replace personalized advice for complex situations such as divorce orders, inherited accounts, or cross-border tax residency. Escalate those cases to a qualified professional. When in doubt about a number that changes every year, describe your plan qualitatively first, then look up the current official figure for the tax year you care about before you act.

How much OAS pays and how it changes

Your amount depends on your age, your income and how long you have lived in Canada. Canada.ca lists maximum monthly payments of $762.50 at ages 65 to 74 and $838.75 at 75 and over. The government notes these maximums are not guaranteed for any individual.

Payments are indexed. Each January, April, July and October amounts are increased to reflect increases in the cost of living, and they do not decrease if the cost of living falls. At 75 you get an automatic 10% increase starting the month after your birthday, which does not affect your Guaranteed Income Supplement.

The recovery tax, often called the clawback, applies when net income is over $93,454 (2025). Above that level you may need to repay part or all of your pension. Working seniors with higher salaries should factor this in. You can rough out your retirement budget with the calculators at

A useful habit is to write down your goal, time horizon, and cash buffer before you change any election related to Old Age Security. Decisions made during a stressful week are the ones people reverse later at a cost. Educational explainers like this one cannot replace personalized advice for complex situations such as divorce orders, inherited accounts, or cross-border tax residency. Escalate those cases to a qualified professional.

Compare fees the same way you would compare two similar listings before you buy: look at what you pay each year, what you get, and whether a simpler option meets the same need. Readers evaluating Old Age Security should separate marketing claims from the actual rule text that governs their account or product. When two summaries disagree, the governing document or statute wins.

When to start: 65 or later?

You can start at 65 or as late as 70. If you wait, Canada.ca says payments increase by 0.6% each month, or 7.2% per year, up to 36% at age 70. Its example table for October to December 2026 shows the maximum monthly amount rising from $762.50 at 65 to $817.40 at 66, $872.30 at 67, $927.20 at 68, $982.10 at 69 and $1,037.00 at 70.

Waiting is not always worthwhile. There is no benefit to delaying if you are eligible for the Guaranteed Income Supplement or already over 70. While you are not receiving OAS, you cannot get the GIS and your spouse or partner cannot apply for the Allowance. Starting at 65 may suit people who need the income now, have little other income, or are still working and would face the recovery tax.

Delaying may suit those who are healthy, have other income, or have fewer than 40 years of residence and want to keep building it. If you are already over 65, a retroactive payment of up to 11 months may be possible from the date your application is received, though not for months you chose to defer.

Keep digital and paper copies of confirmations after every change. Screenshots of election pages, email receipts, and year-end statements make tax season and job changes far less chaotic. Compare fees the same way you would compare two similar listings before you buy: look at what you pay each year, what you get, and whether a simpler option meets the same need.

Partial pensions and related benefits

A full OAS pension generally requires 40 years of residence in Canada after age 18. With fewer years, you may receive a partial pension equal to years lived in Canada divided by 40. Canada.ca's example: 20 years of residence gives 20 divided by 40, or 50% of the full pension. You need at least 10 years of residence if you live in Canada, or 20 years if you live abroad.

If you lived in a country that has a social security agreement with Canada, time there may count toward eligibility, and you may qualify for pensions from both countries. Once your OAS starts, further years in Canada do not increase the amount.

Related benefits support lower-income seniors. The Guaranteed Income Supplement is for OAS recipients living in Canada with income below a set threshold. The Allowance and the Allowance for the Survivor are for people aged 60 to 64 with at least 10 years of residence, linked to a spouse's GIS or the loss of a spouse. Browse more Canadian money explainers at and

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If a rule depends on your age, filing status, or income band, re-check it when any of those facts change. Life events quietly move people across thresholds they last reviewed years earlier. Automation helps. Calendar reminders for annual reviews, automatic transfers, and beneficiary checkups reduce the chance that a good plan dies from neglect.

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