Genuine
As June 2025 nears, Canadian seniors are paying close attention to their Old Age Security (OAS) benefits. With the potential for some retirees to receive up to $2,254 in one month, understanding eligibility and payment structures has never been more important.
Whether you’re already retired or approaching the milestone, this guide will help you uncover how to qualify, maximize your payout, and avoid common pitfalls like the OAS clawback.
What Is Old Age Security (OAS)?
The Old Age Security program is a federally funded, non-contributory monthly benefit designed to support Canadian seniors. Unlike CPP, you don’t need to have worked or paid into it—residency and age are the primary qualifiers.
Key Features:
- Funded by general tax revenues
- Available to most seniors aged 65+
- Payments adjusted quarterly for inflation
- Can be paid even if you live abroad (with conditions)
June 2025 OAS Payment Breakdown
The maximum monthly OAS benefit has increased due to recent inflation adjustments. In June 2025, eligible seniors may receive the following:
| Age Group | Monthly OAS Amount |
|---|---|
| 65 to 74 years old | $727.67 |
| 75 years and older | $800.44 |
When combined with retroactive payments, Guaranteed Income Supplement (GIS), and other credits, some individuals may receive up to $2,254 in June 2025.
OAS Eligibility Requirements
To qualify for the maximum OAS benefit, you must meet the following criteria:
1. Age Requirement
- Must be 65 years or older
- You can defer OAS until age 70 for an increase of up to 36%
2. Residency Requirement
- Must have lived in Canada for at least 10 years after age 18
- 40 years of residency is typically required to get the full benefit
3. Income Requirement
- Net individual income must be below the clawback threshold
- In 2023, the clawback (OAS recovery tax) started at $90,997 and is adjusted annually
OAS Clawback: What You Need to Know
If your net income exceeds the recovery threshold, the government deducts 15 cents for every dollar over the limit. This means higher-income seniors may receive reduced payments or none at all.
Example:
If your net income is $95,000, your OAS payment would be reduced by:
($95,000 - $90,997) x 0.15 = $600.45/year or $50.04/month
CPP vs OAS: Understanding the Difference
Many people confuse CPP and OAS, but they are very different:
| Aspect | CPP | OAS |
|---|---|---|
| Contribution | Required (deducted from earnings) | Not required |
| Based on | Work history and contributions | Age, residency, and income |
| Taxable | Yes | Yes |
| Delaying Benefit | Increases payment | Increases payment by 0.6% per month |
Guaranteed Income Supplement (GIS) Boost
If you’re a low-income senior receiving OAS, you may also qualify for the GIS, which adds a non-taxable supplement to your monthly benefit.
2023 GIS Example (Single Seniors):
- Annual income under $20,832
- May qualify for up to $1,065/month in additional support
This means a senior could receive over $2,200 in a single month when OAS and GIS are combined.
How to Apply for OAS
Not everyone is enrolled automatically. Follow these steps to apply:
- Check your eligibility through My Service Canada Account
- Apply online or mail a paper application (Form ISP-3550)
- Include:
- Proof of age
- Residency history
- Social Insurance Number
- Track your application status online
You can also apply retroactively for up to 11 months if you missed your initial eligibility window.
Tips to Maximize Your OAS Benefits
1. Defer OAS Payments
- Gain 0.6% extra per month deferred (up to 36% max)
- Wait until age 70 if you don’t need the income immediately
2. Split Pension Income
- Couples can split income to reduce tax liability and avoid clawbacks
3. Explore Provincial Top-Ups
- Some provinces offer extra benefits like Ontario’s GAINS program
4. Stay Informed on Tax Changes
- Monitor clawback thresholds and income brackets annually
With the opportunity to receive up to $2,254 in OAS and supplemental benefits in June 2025, planning your retirement income is more important than ever. Understanding how to qualify, apply, and maximize your OAS payment can dramatically impact your financial security in retirement.
Whether you’re just turning 65 or planning to delay for a higher benefit, take time to review your residency history, income level, and application status to ensure you get every dollar you’re entitled to.
FAQs
1Can I receive OAS if I never worked in Canada?
Yes, as long as you meet the age and residency criteria, you are eligible—even without CPP contributions.
How much OAS can I get if I delay my payments?
Delaying OAS up to age 70 increases your payment by 0.6% per month, up to a 36% increase.
What is the OAS clawback threshold for 2025?
The threshold is expected to rise slightly from $90,997, which was the limit in 2023. Exact figures will be updated before June 2025.