OAS
Definition
Old Age Security. A monthly pension funded from general tax revenues for Canadian seniors aged 65 and older.
Key Takeaways
- OAS is a non-contributory monthly pension for Canadians 65+; funded from tax revenues, not payroll contributions.
- Requires 10 years Canadian residence for partial OAS, 40 years for full pension; 10% increase at age 75.
- Subject to 15% clawback (recovery tax) on income above $95,323 (2026 threshold).
- Fully clawed back at ~$155k income (75+) or ~$149k (65-74); automatic monthly deductions based on prior year income.
Detailed Explanation
Old Age Security (OAS) is a monthly payment available to most Canadians aged 65 and older, regardless of employment history. Unlike CPP, OAS is funded from general government tax revenues rather than direct contributions. Eligibility requires Canadian citizenship or legal residency status and at least 10 years of residence in Canada after age 18. For a full OAS pension, you need 40 years of Canadian residence after age 18.
For 2026, OAS recipients aged 75 and older receive 10% more than those aged 65-74, following a permanent increase introduced in July 2022. However, OAS is subject to a recovery tax (clawback) if your net annual income exceeds $95,323 (2026 threshold). The clawback is 15% of income above this threshold, fully eliminating OAS when income reaches approximately $155,000 for those 75+ or $149,000 for those 65-74. The clawback is deducted monthly from OAS payments based on your previous year's income tax return.