Old Age Security
All Canadians who reach the age of eligibility and meet the residency requirements are entitled to payment of a minimum amount of income in recognition of their contribution to our society. A monthly pension payable under the Old Age Security (OAS) Act is paid universally from federal general tax revenues.
Old Age Security (OAS) Benefits
As of January 1, 2021, the maximum monthly rate is:
This year, the income at which clawback begins is:
This year, the income at which OAS is fully clawed back is:
Annual clawback rate is:
* These amounts may be increased quarterly throughout the year.
Old Age Security - Maximum Benefit
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Who Is Eligible for OAS?
Points to Remember
- You must be a Canadian citizen or a permanent resident to receive OAS.
- You need to fill a form in order to receive it.
- You are eligible at 65.
- We suggest you apply at least six months before your 65th birthday.
- You can obtain the form at the local office of Health Canada or online
- You’ll need proof of age.
- In some cases, you may have to prove your age and how long you’ve lived in Canada.
- The amount is adjusted every three months to compensate for changes in living costs.
What Are the Residency Requirements?
- Payment is subject to residency requirements. A person who hasn’t lived in Canada for 40 years after age 18 may still qualify for a full pension if, on July 1, 1977, he or she was 25 years of age or over and lived in Canada on July 1, 1977; or had lived in Canada before July 1, 1977, after reaching age 18; or possessed a valid immigration visa on July 1, 1977.
- In such cases as stated above, a person must have lived in Canada for the 10 years immediately prior to approval of the Old Age Security application.
- If you have been absent for part of that 10-year period, your period of residence in Canada between the ages of 18 and 55 must be at least three times the total of your absences in the 10 years before 65 or must total at least 40 years after the age of 18.
- If the above conditions aren't met, the pension is prorated based on years of residence after the age of 18, over a period of 40 years.
Deferring Your OAS Benefits
- Deferral will increase your payment at 0.6% per month.
- The maximum increase for those who defer until five years past their age of eligibility will be 36%.
Old Age Security: Pension Comparison and Break-Even Points
What Happens If I Emigrate or Immigrate?
Canada has negotiated reciprocal agreements with some countries in order that social security benefits may be preserved when people emigrate or immigrate. Persons who have spent portions of their working lives in more than one country may receive partial social security benefits from each country.
Where there is no reciprocal agreement, the Old Age Security pension is payable for six months after the pensioner leaves Canada. It may be resumed if the pensioner returns. However, if the pensioner had 20 years of residency in Canada after age 18, then the pension is not affected by the pensioner’s absence from Canada.
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For more information on OAS, visit this page on the Service Canada website.