The Old Age Security (OAS) pension is a key financial support for Canadian seniors, providing a steady income during retirement.
In February 2025, eligible recipients will receive $713.34 per month.
Understanding the eligibility criteria, payment dates, additional benefits, and tax implications can help you maximize your OAS payments and plan for a secure retirement.
$713.34 Canada Old Age Security Pension
OAS payments are adjusted quarterly based on inflation, ensuring they keep up with the rising cost of living. The February 2025 OAS pension is set at $713.34 per month for eligible seniors.
OAS Payment Schedule for Early 2025
| Month | Payment Date |
|---|---|
| January 2025 | January 29, 2025 |
| February 2025 | February 26, 2025 |
| March 2025 | March 27, 2025 |
| April 2025 | April 28, 2025 |
| May 2025 | May 28, 2025 |
| June 2025 | June 26, 2025 |
Payments are typically issued on the third-to-last business day of each month. If the payment date falls on a holiday, funds may be deposited earlier.
Eligibility
To qualify for OAS, you must meet certain requirements.
1. Age Requirement
- You must be 65 years or older.
2. Residency Requirement
- You must be a Canadian citizen or legal resident at the time your application is approved.
- You must 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 age 18.
Full vs. Partial OAS
| Years Lived in Canada After Age 18 | OAS Pension Amount |
|---|---|
| 40+ years | Full OAS ($713.34/month) |
| 30 years | 30/40 of full OAS |
| 20 years | 20/40 of full OAS |
| 10 years (minimum) | 10/40 of full OAS |
If you have lived in Canada for less than 40 years, your OAS pension is calculated on a pro-rata basis, meaning you receive 1/40th of the full amount for each year of residence.
Additional Benefits for Seniors
In addition to OAS, seniors may qualify for other financial assistance programs.
1. Guaranteed Income Supplement (GIS)
The GIS is a non-taxable benefit for low-income seniors receiving OAS.
- Maximum GIS for single seniors in 2025: $1,046.73 per month.
- Eligibility depends on income level.
2. Allowance for Spouses (Ages 60-64)
- Available to low-income individuals aged 60 to 64 whose spouse receives OAS and GIS.
- Helps bridge the financial gap until they qualify for OAS at age 65.
3. Allowance for the Survivor
- Available to low-income individuals aged 60 to 64 who have lost their spouse and have not remarried.
- Provides financial support before reaching OAS eligibility at 65.
For more details, visit Service Canada’s website.
How to Apply for OAS
Many seniors are automatically enrolled in OAS. However, if you do not receive an enrollment letter from the government, you must apply.
Steps to Apply
- Check Eligibility – Ensure you meet the age and residency criteria.
- Apply Online – Use your My Service Canada Account.
- Submit a Paper Application – Print and mail the OAS application form to Service Canada.
When to Apply?
It’s best to apply 6 months before turning 65 to avoid delays in receiving payments.
Deferring OAS for Higher Payments
Seniors can delay OAS for up to 5 years (until age 70) to receive higher monthly payments.
- OAS increases by 0.6% for each month deferred, up to a maximum of 36%.
- This means delaying OAS until age 70 could increase your monthly pension from $713.34 to approximately $970.14.
Deferring OAS may be a smart option for those still working or with other income sources.
OAS and Taxes: Understanding the OAS Clawback
The OAS pension is taxable income. If your annual net income exceeds $90,997 (2024), you may be subject to the OAS clawback (also called the OAS recovery tax).
- For every dollar over the threshold, OAS is reduced by 15%.
- If your income is too high, you may lose OAS entirely.
Strategies to Reduce the OAS Clawback
- Income Splitting – Share pension income with a spouse to lower taxable income.
- Tax-Efficient Investing – Use Tax-Free Savings Accounts (TFSA) instead of taxable accounts.
- Deferring OAS – Delay payments until retirement income is lower.
For more details, visit Service Canada’s website.
The Old Age Security pension is a key benefit for Canadian seniors, providing a stable income in retirement. Understanding eligibility, payment schedules, additional benefits, and tax implications can help you maximize your OAS payments.
If you’re approaching 65, apply early to avoid delays, and consider deferral options for increased payments. Stay informed and plan ahead for a financially secure retirement.
