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Complete OAS Guide for Canadians in 2026

Updated

OAS Payment Amounts (2026)

Benefit Maximum Monthly Maximum Annual Eligibility
OAS pension (age 65) $751.97 $9,024 40 years residency
OAS pension (age 70, deferred) $1,022.68 $12,272 36% increase for 5-year deferral
OAS 75+ supplement Additional ~$54/mo ~$648/yr Automatic at age 75
GIS (single, max) $1,123.17 $13,478 Low income (under ~$22,800/yr)
GIS (couple, max per person) $676.09 $8,113 Combined income threshold
Allowance (60–64, spouse of OAS recipient) $1,354.69 $16,256 Low-income, spouse receives OAS

OAS Deferral Strategy

For a full retirement-income projection that includes OAS, CPP, RRSP/RRIF, and TFSA withdrawals, use the retirement calculator.

Start Age Monthly Amount Annual Amount % Increase Breakeven vs 65
65 $751.97 $9,024 Baseline
66 $806.11 $9,673 +7.1% Age 77.5
67 $860.25 $10,323 +14.2% Age 78.5
68 $914.40 $10,973 +21.3% Age 80
69 $968.54 $11,622 +28.4% Age 81
70 $1,022.68 $12,272 +36.0% Age 82.5

Each month of deferral adds 0.6% to your OAS pension. If you live past the breakeven age, deferral pays off.

When to Defer vs Start at 65

Situation Recommendation Reason
Low income, need money now Start at 65 May qualify for GIS (lost if you defer)
Good health, expect to live past 82 Defer to 70 Higher lifetime benefits
High income (clawback applies) Defer to reduce clawback Less income in 65–70 phase
Have other retirement income Consider deferring Larger guaranteed income later
GIS eligible Start at 65 GIS is only available to OAS recipients
Spouse can support during deferral Defer to 70 Higher combined income long-term

OAS Clawback (Recovery Tax)

Income Level (Net Income) OAS Clawback Amount Monthly OAS After Clawback
Under $93,454 $0 $751.97 (full)
$100,000 ~$982/yr $670/mo
$110,000 ~$2,482/yr $545/mo
$120,000 ~$3,982/yr $420/mo
$130,000 ~$5,482/yr $295/mo
$140,000 ~$6,982/yr $170/mo
~$152,062+ Full clawback $0

Strategies to Minimize OAS Clawback

Strategy How It Works Potential Savings
Income splitting (pension) Split eligible pension income with spouse Reduce individual income below threshold
TFSA withdrawals (not counted as income) Use TFSA instead of RRSP/RRIF No impact on OAS clawback
Defer RRSP to RRIF conversion Minimize RRIF withdrawals Lower taxable income
Trigger capital gains early (before 65) Realize gains before receiving OAS Avoid adding to net income
Spousal RRSP Equalize retirement income Both spouses below clawback
Corporate dividends (gross-up issue) Be aware: dividends are grossed up May trigger clawback faster

If your drawdown plan depends heavily on registered withdrawals, review the RRIF calculator and RRSP to RRIF conversion guide.

OAS Eligibility Requirements

Situation Residency Needed Pension Amount
Full OAS (lived in Canada your whole life) 40+ years after age 18 100% ($751.97/mo)
Partial OAS (minimum eligibility) 10 years after age 18 10/40 = 25% ($187.99/mo)
Partial OAS (20 years) 20 years after age 18 20/40 = 50% ($375.99/mo)
Partial OAS (30 years) 30 years after age 18 30/40 = 75% ($563.98/mo)
OAS while living abroad 20+ years after age 18 Proportional to years
International agreement countries Varies Can combine residency periods

How to Apply for OAS

Step Action Timeline
1 Check if auto-enrolled Service Canada may send a notification letter at age 64
2 If not auto-enrolled, apply Apply up to 11 months before you want payments to start
3 Apply online (My Service Canada) Fastest method
4 Submit supporting documents Proof of residency, SIN, immigration documents if needed
5 Request deferral (if desired) Indicate you want to defer past 65
Processing time 6–12 weeks

OAS vs CPP Comparison

Feature OAS CPP
Funding source General tax revenue Employee/employer contributions
Eligibility Residency-based (10+ years) Contribution-based (must have worked)
Maximum at 65 $751.97/mo $1,364.60/mo
Deferral bonus (per year) 7.2%/year (to age 70) 8.4%/year (to age 70)
Clawback Yes (above ~$93K income) No clawback
Taxable Yes Yes
Indexed to inflation Yes (quarterly) Yes (annually)
Available outside Canada Yes (with 20+ years residency) Yes
GIS add-on Yes (for low-income) N/A

For contribution rules, disability benefits, and start-age tradeoffs on the CPP side, see the CPP guide.

All OAS & GIS Articles

OAS Guides & Calculators

GIS Guides & Calculators