Old Age Security (OAS)

Old Age Security, or OAS, is a monthly payment from the Canadian federal government to people aged 65 and older. Unlike the Canada Pension Plan (CPP), you don’t need to have worked or contributed to anything to receive it. If you’ve lived in Canada long enough, you qualify.

How it works

To get the full OAS pension, you generally need to have lived in Canada for at least 40 years after turning 18. If you’ve lived here for fewer years, you may still qualify for a partial payment. As of early 2026, the maximum monthly OAS payment is around $700 to $800, depending on your age bracket. It’s indexed to inflation, so it adjusts over time.

You can start receiving OAS at 65, or you can defer it until age 70 for a higher monthly amount. Each month you delay increases your payment by 0.6%, which adds up to a 36% boost if you wait the full five years.

The clawback

One thing worth knowing: if your individual net income exceeds a certain threshold (roughly $90,000), the government starts reducing your OAS payments. This is called the OAS clawback, or officially the OAS recovery tax. If your income is high enough, you may not receive any OAS at all.

OAS is one piece of the retirement puzzle, but it’s rarely enough on its own. For most Canadians, it works alongside CPP, personal savings, and any workplace pension. If your entire retirement plan leans heavily on your home’s value, OAS can help fill gaps, but it won’t replace a real savings strategy.

A concrete example

If you start OAS at 65 and receive $727 per month, that works out to $8,724 per year. If you defer to age 70, the 36% boost brings your monthly payment to about $988, or $11,856 per year. Over 20 years of collecting, the deferral adds up to roughly $62,640 more in total payments. Whether deferring makes sense depends on your other income sources and whether waiting five years is realistic for your situation.