Old Age Security in Canada: What It Is and When You Start Receiving It

Old Age Security probably feels very far away when you are juggling tuition, rent, a first full-time job, or trying to build an emergency fund. Still, understanding it now gives you a clearer picture of what retirement income in Canada actually looks like. OAS is one piece of the system that could support you later, alongside the Canada Pension Plan (CPP), workplace benefits, and your own savings in accounts such as a TFSA or RRSP. It is also different from CPP in one important way: you do not earn OAS by working or making payroll contributions. Your years living in Canada matter most. Knowing that early can help you avoid assuming the government pension will cover every retirement cost on its own—and make smarter choices with the money you can invest today.

Quick answer: Old Age Security (OAS) is a monthly, taxable payment from the federal government for eligible Canadians aged 65 and older. Most people can start receiving OAS at 65 if they meet Canada residence rules, or delay it until age 70 for a permanently higher monthly payment.

What is Old Age Security in Canada?

Old Age Security is a federal retirement benefit that pays eligible people aged 65 and older a monthly amount based mainly on how long they have lived in Canada after age 18. Unlike CPP, OAS is not funded by deductions from your paycheque and does not depend on your job history, salary, or whether you ever worked full-time.

The Government of Canada adjusts maximum OAS payment amounts every January, April, July, and October to reflect inflation. As an example, from July to September 2025, the maximum monthly payment was $734.95 for people aged 65 to 74 and $808.45 for people aged 75 and older. People 75+ receive a permanent 10% increase to their OAS pension. Check Service Canada for the current quarterly amount when you are closer to applying.

OAS is taxable income, meaning it goes on your income tax return. It is not tax-free like a TFSA withdrawal. Higher-income seniors may also have to repay some or all of their OAS through the OAS recovery tax, commonly called the “clawback.”

Think of OAS as a base layer, not a complete retirement plan. CPP, employer pensions, savings, and investments are the other layers. Our guide to CPP contributions in Canada explains how CPP fits beside OAS.

When do you start receiving OAS in Canada?

You can usually start receiving OAS at age 65, with your first payment generally beginning in the month after your 65th birthday. You may be automatically enrolled if Service Canada has enough information about you, but do not assume this will happen. Service Canada may mail you a letter shortly after you turn 64 telling you whether you are enrolled automatically or need to apply.

If you need to apply, you can do it online through your My Service Canada Account or submit a paper application. Applying about 11 months before you want payments to start is a sensible move, especially if you have lived outside Canada, have changed names, or have an incomplete record.

You can also choose to delay OAS after age 65. Every month you delay raises your monthly payment by 0.6%, up to a maximum increase of 36% if you wait until age 70. For example, delaying for 60 months turns a $750 monthly payment into roughly $1,020 per month before tax.

Delaying is not automatically “better.” It can make sense if you are still earning a high income at 65 and expect a longer retirement, but taking OAS at 65 can be more useful if you need the income or have health concerns. This is one reason learning how to manage money in your 20s matters: more personal savings later gives you more choices about when to claim government benefits.

Quick tip: Create a My Service Canada Account long before retirement and keep your address, direct-deposit details, and tax returns up to date so an OAS application does not become a last-minute scramble.

Who qualifies for Old Age Security payments?

You qualify for OAS at age 65 if you are a Canadian citizen or legal resident when your application is approved and have lived in Canada for at least 10 years since turning 18. That 10-year rule generally gives you access to a partial OAS pension if you are living in Canada when you apply.

To receive the full OAS pension, you generally need 40 years of residence in Canada after age 18. If you have fewer than 40 years, your payment is usually calculated as a fraction of the full amount. For example, someone with 20 qualifying years may receive 20/40, or 50%, of the maximum OAS payment.

If you live outside Canada when you apply, the basic rule is stricter: you generally need at least 20 years of Canadian residence after age 18 to receive OAS abroad. Canada also has social security agreements with several countries. These agreements can sometimes help people who split their lives between Canada and another country meet eligibility requirements, although they do not always increase the payment amount.

For younger Canadians, this matters most if you are planning a long move abroad. A working holiday, graduate degree, or few years overseas will not necessarily ruin your future OAS eligibility. But decades outside Canada can affect how much you receive. Keep records of where you lived, especially if your future life may include immigration or extended time abroad.

How do OAS taxes, the clawback, and GIS affect your payment?

OAS is taxable income, and high-income seniors can lose part or all of it through the OAS recovery tax. The recovery tax is often called an OAS clawback because the federal government recovers 15 cents of OAS for every dollar of net income above the annual threshold.

The income threshold changes each year with inflation. For the 2025–26 recovery-tax period, the threshold began at $93,454 of net income for the 2024 tax year. A senior over that amount does not instantly lose all OAS; the 15% repayment applies only to income above the threshold. Service Canada withholds estimated recovery tax from future OAS payments, and the final amount is settled through the CRA tax return.

On the other end of the income scale, low-income OAS recipients may qualify for the Guaranteed Income Supplement (GIS). GIS is an additional monthly payment for eligible low-income seniors living in Canada. Unlike OAS, GIS is not taxable. Filing a tax return every year is essential because the CRA uses it to assess GIS eligibility and calculate payment amounts.

Your future income mix can affect taxes in retirement. Using a TFSA for some savings may help because TFSA withdrawals do not count as taxable income for OAS clawback purposes, while RRSP withdrawals do. Learn the basics of the 2026 basic personal amount to understand why taxable income matters beyond your working years.

Why should people in their 20s care about OAS now?

People in their 20s should care about OAS because it shows why government benefits alone are unlikely to fund the retirement lifestyle you want. Even a full OAS pension is a monthly payment designed to help with basic living costs, not necessarily travel, hobbies, rising rent, home repairs, or private health expenses.

OAS is also not guaranteed to stay exactly the same in real life. The program is indexed to inflation, which helps protect purchasing power, but payment rules, tax thresholds, and future government policy can change over the decades before you retire. Building your plan around one government benefit would put too much pressure on something you cannot fully control.

The good news is that you do not need to solve retirement at 22. Starting small matters more than finding the perfect amount. Investing $50 or $100 per month in a TFSA through a platform such as Wealthsimple or Questrade can build the habit, while an EQ Bank high-interest savings account can be a useful home for short-term cash. The first priority may be paying down expensive debt, building a small emergency fund, and avoiding the money mistakes Canadian students often make. OAS can be part of your future safety net; your own savings create flexibility.

Frequently Asked Questions

What age do you get Old Age Security in Canada?

You can usually start receiving Old Age Security at age 65 in Canada. Your first OAS payment normally starts in the month after your 65th birthday if you are eligible and enrolled or have applied. You may delay OAS until age 70 for a higher monthly amount.

How much is OAS per month in Canada?

The maximum OAS payment changes every quarter because it is indexed to inflation. From July to September 2025, the maximum was $734.95 per month for ages 65 to 74 and $808.45 per month for ages 75 and older. Your actual payment can be lower if you have fewer than 40 years of qualifying residence in Canada.

Do you have to apply for OAS at age 65?

You may need to apply for OAS at age 65, although some Canadians are automatically enrolled by Service Canada. Service Canada usually sends a letter after age 64 to confirm whether you are enrolled automatically or must submit an application. If you need to apply, doing so up to 11 months before you want payments to start can prevent delays.

Is Old Age Security the same as CPP?

Old Age Security is not the same as CPP. OAS is based mainly on years you lived in Canada after age 18, while CPP is based on your work history and CPP contributions from employment or self-employment. Eligible Canadians can receive both benefits in retirement.

Can you receive OAS if you live outside Canada?

You can receive OAS while living outside Canada if you generally lived in Canada for at least 20 years after age 18. People with fewer than 20 years may still qualify in some cases through a social security agreement between Canada and another country. Your payment may be partial if you have fewer than 40 years of Canadian residence.

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