Retirement planning is crucial for financial stability, and for Canadian seniors, the Old Age Security (OAS) pension plays a key role. In February 2025, eligible seniors will receive a monthly OAS payment of $713.34.
This guide explains OAS eligibility, payment dates, additional benefits like the Guaranteed Income Supplement (GIS), and how to maximize your pension.
If you’re approaching retirement or helping a loved one plan, this article will provide the essential details.
OAS Pension Overview
The Old Age Security (OAS) pension is a government-funded monthly benefit for Canadians aged 65 and older. Unlike the Canada Pension Plan (CPP), which is based on work contributions, OAS is funded through general tax revenue.
Payments are adjusted quarterly based on inflation to help seniors maintain their purchasing power.
OAS Pension Details
| Topic | Details |
|---|---|
| OAS Payment Amount | $713.34 per month (February 2025) |
| Eligibility Criteria | – Must be 65 or older – Must be a Canadian citizen or legal resident – Must have lived in Canada for at least 10 years after turning 18 |
| Payment Date | February 26, 2025 |
| Additional Benefits | – Guaranteed Income Supplement (GIS) – Allowance for spouses aged 60-64 – Allowance for survivors aged 60-64 |
| Application Process | – Automatic enrollment if eligible – Apply 6 months before turning 65 if not auto-enrolled – Apply online or submit a paper application |
| Deferring OAS | You can defer OAS for up to 5 years (until age 70) for a higher pension (0.6% increase per month, up to 36% more) |
| Tax Implications | OAS is taxable; if your annual income exceeds $90,997 (2024), OAS clawback may apply |
For official details, visit the Government of Canada website.
Eligibility
To qualify for OAS pension payments, you must meet these conditions:
- Be 65 years or older
- Be a Canadian citizen or legal resident when your application is approved
- Have lived in Canada for at least 10 years after turning 18
If you live outside Canada, you may still qualify if you have lived in Canada for at least 20 years after turning 18.
Full vs. Partial OAS
- Full OAS: Requires 40 years of residence in Canada after age 18.
- Partial OAS: If you have lived in Canada for less than 40 years, you receive 1/40th of the full pension for each year of residence.
OAS Payment Dates for 2025
OAS payments are issued on the third-to-last business day of each month. Here are the payment dates for early 2025:
| Month | OAS Payment Date |
|---|---|
| January | January 29, 2025 |
| February | February 26, 2025 |
| March | March 27, 2025 |
| April | April 28, 2025 |
| May | May 28, 2025 |
| June | June 26, 2025 |
For the full payment schedule, check the Government of Canada’s benefits payment calendar.
Additional Benefits for Seniors
1. Guaranteed Income Supplement (GIS)
The GIS provides extra financial support for low-income seniors receiving OAS.
- Maximum GIS for single seniors (2025): $1,046.73 per month
- Eligibility depends on income and marital status
2. Allowance for Spouses (Ages 60-64)
Low-income individuals aged 60 to 64 with a spouse receiving OAS and GIS may qualify for this allowance.
3. Allowance for the Survivor
If you’re 60 to 64 years old and your spouse has passed away, you may qualify for this survivor’s benefit, provided you haven’t remarried.
For more details, visit the GIS and Allowance page on the Government of Canada website.
How to Apply for OAS
Most eligible seniors are automatically enrolled. However, if you do not receive an enrollment letter, you must apply.
Steps to Apply
- Check Eligibility: Ensure you meet the age and residency requirements.
- Apply Online: Use your My Service Canada Account.
- Submit a Paper Application: Download the OAS application form and mail it to Service Canada.
When to Apply?
Apply 6 months before your 65th birthday to avoid delays in receiving payments.
Deferring OAS for Higher Payments
You can defer your OAS pension for up to 5 years (until age 70). Each month you delay, your OAS increases by 0.6%, up to a maximum of 36% more.
| Age When You Start OAS | Monthly OAS Payment |
|---|---|
| 65 years | $713.34 |
| 66 years | ~$756 |
| 67 years | ~$801 |
| 68 years | ~$849 |
| 69 years | ~$899 |
| 70 years | ~$970 |
Deferring may be beneficial if you continue working or have other income sources.
OAS Clawback: Tax Implications
The OAS pension is taxable income. If your annual net income exceeds $90,997 (2024), you may face an OAS clawback (OAS recovery tax).
- OAS payments are reduced by 15% of any income above the threshold
- If your income is too high, you may lose OAS benefits entirely
How to Reduce OAS Clawback?
- Income Splitting: Share retirement income with your spouse
- Tax-Efficient Investments: Use Tax-Free Savings Accounts (TFSAs)
- Deferring OAS: Avoid clawback by delaying your OAS pension
Planning ahead can help you keep more of your retirement income.
The OAS pension is a crucial source of financial support for Canadian seniors. Understanding eligibility, payment dates, additional benefits, and tax implications will help you maximize your pension and plan for a secure retirement.
Whether you qualify for full or partial OAS, staying informed about deferrals and clawback strategies can improve your retirement income.
