The Old Age Security (OAS) pension is one of Canada’s key retirement benefits, helping seniors maintain financial stability. In March 2025, eligible seniors can receive up to $978 per month, depending on their age and income level.
This guide explains who qualifies, how to apply, income thresholds, and how to maximize your benefits so you can make the most of your retirement income.
$978 Monthly OAS Payment In March 2025
The OAS pension is a government-funded monthly payment available to seniors aged 65 and older, regardless of their work history. The amount you receive depends on how long you’ve lived in Canada and your income.
| Aspect | Details |
|---|---|
| Maximum OAS Payment (March 2025) | Up to $978/month |
| Eligibility Age | 65+ |
| Residency Requirement | Minimum 10 years in Canada after age 18 |
| Income Clawback Threshold | Starts at $86,912/year (2024) |
| How to Apply | Online via My Service Canada or by mail |
| Automatic Enrollment? | Yes, for many seniors |
OAS Payment Amounts in March 2025
OAS payment amounts depend on age and income:
| Age Group | Maximum Monthly OAS Payment |
|---|---|
| 65 – 74 | $727.67 |
| 75+ | $800.44 |
Seniors may also qualify for additional benefits like the Guaranteed Income Supplement (GIS), which can increase their total monthly income.
OAS Clawback (Recovery Tax)
The OAS pension is subject to an income-based clawback, also known as the OAS Recovery Tax. If your annual income exceeds $86,912 (2024), your OAS payment will be reduced. The full amount is clawed back at $141,917.
How the Clawback Works:
- For every $1 above the income threshold, you lose 15 cents in OAS benefits.
- If your income reaches $141,917, your OAS benefit is completely eliminated.
To avoid or minimize the clawback, seniors should plan their retirement income sources carefully.
Who Qualifies for OAS Payments?
To be eligible for OAS in March 2025, you must meet the following requirements:
1. Age Requirement
- You must be at least 65 years old to receive OAS.
2. Residency Requirement
- You must have lived in Canada for at least 10 years after turning 18.
- To receive full OAS payments, you need 40 years of residency in Canada after age 18.
- If you lived in Canada for less than 40 years, you may receive a partial OAS payment, calculated as:(Years lived in Canada after 18 ÷ 40) × Full OAS amount
3. Income Considerations
- Your annual income must be below $86,912 to receive full OAS payments.
- Higher-income seniors may face a clawback or lose benefits entirely.
4. Impact of Other Retirement Benefits
Your OAS payments may be affected by:
- Canada Pension Plan (CPP)
- Employer Pensions
- Investment Income
- Other Government Benefits
To maximize your retirement income, it’s important to plan how and when to withdraw these funds.
How to Apply for OAS Payments
1. Automatic Enrollment
- Many seniors are automatically enrolled and will receive a notification letter around age 64.
- If you receive this letter, no action is needed—your payments will start automatically.
2. Manual Application
If you are not automatically enrolled, you must apply:
- Online: Through My Service Canada Account
- By Mail: Download and complete Form ISP-3550, then mail it to Service Canada
- In Person: Visit a Service Canada office
3. When to Apply
- You can apply six months before your 65th birthday.
- Delays in application may result in missed payments.
4. Common Application Mistakes to Avoid
- Incorrect residency details – Could affect eligibility.
- Missing income information – May result in incorrect payments.
- Late application – Delays payments.
- Not reporting changes – Changes in income or marital status can impact your OAS payments.
OAS Payment Dates for 2025
OAS payments are made monthly on the third-to-last banking day of each month.
| Month | 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 |
| July | July 29, 2025 |
| August | August 27, 2025 |
| September | September 25, 2025 |
| October | October 29, 2025 |
| November | November 26, 2025 |
| December | December 22, 2025 |
Additional Benefits for Seniors
1. Guaranteed Income Supplement (GIS)
The GIS provides extra financial support for low-income seniors. To qualify:
- You must be receiving OAS.
- Your income must be below the GIS income threshold.
2. Allowance & Allowance for the Survivor
- Allowance: For low-income spouses (aged 60-64) of OAS recipients.
- Allowance for the Survivor: For widowed seniors aged 60-64.
3. Provincial & Territorial Supplements
- Some provinces offer additional financial support for seniors.
- Check with your local government for extra benefits available in your province.
How to Maximize Your OAS Benefits
- Minimize Income to Avoid Clawback
- Withdraw RRSPs before 65 to reduce taxable income later.
- Delay CPP until 70 for higher benefits.
- Consider Deferring OAS Payments
- If you delay OAS past 65, payments increase by 0.6% per month (up to 36% more at 70).
- Combine with Other Benefits
- Apply for GIS, Allowance, and other senior benefits to boost income.
Future Changes to OAS
OAS payments are adjusted quarterly for inflation. Future updates may include:
- Higher income thresholds for clawback.
- Increased benefits to match rising living costs.
- More provincial support programs for low-income seniors.
For the latest updates, visit Canada.ca.
