Old Age Security (OAS) is a monthly federal pension available to most Canadians aged 65 and older. Unlike CPP, OAS is not based on your work history — it is funded through general tax revenue and paid based on how long you have lived in Canada.
How OAS Works
To receive the full OAS pension, you must have lived in Canada for at least 40 years after age 18. The pension is indexed quarterly to inflation. You can defer OAS past age 65 up to age 70, increasing the benefit by 0.6 percent for every month of deferral.
Why It Matters in Retirement
Higher-income retirees are subject to the OAS recovery tax — commonly called the clawback — which can reduce or eliminate OAS if net income exceeds a threshold. Managing income to stay below that threshold is one of the most common retirement tax strategies.
Related Resources
This article provides general financial education for Canadians. It is not personalized financial advice. For guidance specific to your situation, consider speaking with a CFP professional.