The Old Age Security (OAS) pension is one of the three main pillars of Canada’s retirement income system. The two other pillars are the Canada Pension Plan (CPP) and Employment Pension Plans/Individual Retirement Savings.
The universal OAS pension is a taxable monthly payment available to seniors who are aged 65 and older and who meet the eligibility requirements.
Unlike the CPP, Old Age Security benefits are not tied to your employment history. You may be eligible to receive the OAS pension even if you have never worked or are still employed.
In addition to the universal OAS pension, there are three other benefits that low-income seniors may also qualify for: The Guaranteed Income Supplement, Allowance, and Allowance for the Survivor. I discuss them in a separate article.
Read on to learn about OAS payment dates in 2024, eligibility, amounts, how to apply, and how to minimize OAS clawback.
Related: How Much Income Will You Need in Retirement
OAS Payment Dates for 2024
- January 29, 2024
- February 27, 2024
- March 26, 2024
- April 26, 2024
- May 29, 2024
- June 26, 2024
- July 29, 2024
- August 28, 2024
- September 25, 2024
- October 29, 2024
- November 27, 2024
- December 20, 2024
Learn more about OAS payment dates.
Who is Eligible for the Old Age Security Pension?
- You must be at least 65 years of age.
- If living in Canada: You must be a Canadian citizen or legal resident and must have lived in Canada for at least 10 years since you turned 18.
- If living outside Canada: You must have been a Canadian citizen or legal resident before you left Canada and must have resided in Canada for at least 20 years since you turned 18.
- There are a few other scenarios where you may be eligible for the OAS; for example, if you have lived in a country with which Canada has established a social security agreement.
How to Apply for the OAS Pension
If you wish to start receiving your OAS pension at 65 years of age, you can send in your application the month after you turn 64.
Service Canada will sometimes enroll seniors automatically and send them a notification letter. If you are not automatically enrolled, complete and mail the Application for the Old Age Security Pension Form.
How Much OAS Benefit Can You Expect in 2024?
The amount you will receive every month depends on how long you have lived in Canada after turning 18.
To qualify for a full OAS pension, you must have lived in Canada for at least 40 years after age 18. You will receive a partial pension benefit if you haven’t resided in Canada for the full 40 years. The partial pension benefit is 1/40th of the full pension amount for each complete year you lived in Canada after age 18.
For example, if you had lived in Canada for 20 years as an adult, you may qualify to receive 20/40th or one-half of the full benefit.
OAS benefits are adjusted quarterly in January, April, July, and October based on the prevailing Consumer Price Index. For the last quarter of 2024 (i.e. October to December), the maximum monthly OAS benefit is $727.67 (for ages 65 to 74) and $800.44 (for ages 75 and over).
Related: CPP and OAS Survivor Benefits for Spouses and Children
OAS Deferral Option
Since July 1, 2013, individuals can voluntarily defer their OAS pension for up to 5 years after the date they become eligible. This deferral will make them eligible for a higher monthly pension later.
For every month the OAS is deferred, the monthly pension amount increases by 0.6% up to a maximum of 36% at age 70.
OAS Clawback
Officially known as the OAS recovery tax.
Your OAS benefit may be reduced by a clawback if your net income for the previous calendar year exceeds $90,997 (2024).
If your net income exceeds this amount, you must pay back 15% on the excess income up to a maximum of the total OAS benefit received. This deduction is like an additional 15% tax on top of your current tax rate.
OAS clawback example: For example, for the 2022 income year, the income threshold was $81,761. If your net income was $85,000, the excess of $3,239 would trigger a clawback of $485.85 (i.e. 15% x $3,239). This would result in a monthly reduction in OAS benefits of $40.48 for the July 2023 to June 2024 period.
For the October to December 2024 quarter, if your net income exceeds $148,451, your OAS benefit will be reduced to zero.
Related: Guaranteed Income Supplement, Allowance and Allowance for the Survivor
How To Minimize OAS Clawbacks
A few strategies that may be deployed to limit OAS clawback, if applicable, include:
Income Splitting: Splitting eligible pension income, including workplace pensions, RRIF, and utilizing spousal RRSPs. This can lower individual spouses’ overall income and limit or eliminate OAS clawback.
Defer OAS/CPP: Seniors can defer OAS pensions for up to 5 years from when they are eligible. CPP can be deferred as well. However, note that deferring OAS or CPP will increase your benefits later down the road and could then trigger OAS clawbacks at that time. In some cases, taking CPP much earlier may be a better option.
Prioritize TFSA Contribution: Income generated from investments in a TFSA is not taxable and does not count towards your net income.
Utilize RRSP Contribution Room: You can contribute to an RRSP until the end of the year in which you turn 71. If you have unused RRSP contribution room from previous years or still have employment income, contributing to an RRSP will lower your net income for OAS calculations. Making spousal RRSP contributions will achieve the same result.
Optimize other Investments: Interest income from Guaranteed Income Certificates, savings, etc., are taxed fully. Dividends are grossed up (138%) and may push your income over the maximum threshold. Only 50% of capital gains are included in taxable income.
If you have questions about your Old Age Security pension, you can contact Service Canada as follows:
- If you reside in Canada or the United States, the toll-free number is 1-800-277-9914.
- If you reside outside Canada and the United States, the number to call is 1-613-957-1954.
Service Canada is open between 8:30 a.m. to 4:30 p.m. EST from Monday to Friday. Be sure to have your Social Insurance Number handy before calling.
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Related Reading
- Complete Guide To Retirement Income In Canada
- How To Generate Regular Income From Your RRSP in Retirement
- How To Generate Retirement Income From a LIRA
- The Complete Pre-Retirement Financial Checklist
- Is GIS Taxable?
Hello Enoch
1964 dob – lived USA 1964-1971 and 1999-2011. Canada 1971-1999/ 2011- current. Worked 3 years in USA. Would I qualify for OAS? If my understanding is correct, I would apply when I turn 65. If you would kindly confirm or clarify. Thank you for your time. T.LaPierre
@T. LaPierre: Based on the general info provided, yes.
Hello Enoch,
When I am 65 I will have lived in Canada for 15 years. If I defer collecting OAS until 70, will the deferred 5 years count. In other words, would I get 20/40th OAS at 70 as compared with 15/40 aged 65.
Thank you.
@Philip: Yes, that’s correct, as long as you haven’t taken OAS until age 70.
It looks as though the OAS will rise by around 2% in July, due to the increase in cpi from Feb to April this year, compared to last. Will this increase occur before the 10% one-time increase in the federal budget, or will the 10% include the 2% we would have received anyway?
I’m in arrears with maintenance enforcement here in Alberta. I’m currently paying 80% of my CPP to them thru a Court ordered judgement. Will I also lose most of my OAP which I just became 65 years in August of this year.
@S.P. From what I could find online, it is a possibility.
Hi Enoch, if a person defers receiving OAS until 70, will the 36% increase be calculated based on the amount at 65 or 70? Also, how will the second year (i.e., 71) be calculated taking into consideration of the annual inflationary increase?
Thanks
Ray
Hi Enoch, if a person defer receiving the OAS from 65 to 70, then he get a 36% increase. I have two questions about this: (i) What is the base amount for calculation – the eligible amount at 65 or 70? (ii) Assume it is the amount at 65 for the previous question, then is it true that he is going to get the cost of living adjustment each and every subsequent year based on this amount but not the annual amount published for the current year by the CRA?
Thanks!
Ray
Hi Enoch, can you answer the following questions which have confused me a lot please? (a) If I defer my OAS until the age of 70, then I know I will get 36% more, but calculated based on which amount? Is it the amount when I am first entitled at the age of 65, or the most recent amount at the age of 70? (b) Following the above, assume I will get 36% more of my entitlement at the age of 65 when I start receiving the OAS at the age of 70, then how much will I receive in the next year and going forward? Always the same amount as before or following the amount increased by the CRA each year? Can you illustrate with a hypothetic example please?
Thank you.
Ray
I have lived in Canada for 30 years and nearly 70 now.
If I qualify for a pension from the UK will this affect my OAS.
@Jill: I would assume so since this pension is included in the worldwide income you declare on your tax return?