OAS Eligibility: What You Need to Know

Old Age Security (OAS) is Canada's largest pension program, providing monthly payments to most Canadians aged 65 and older. Unlike the Canada Pension Plan (CPP), OAS is funded through general tax revenues and doesn't require contributions during your working years. However, eligibility isn't automatic, and understanding the requirements is crucial for securing these important benefits.

What is Old Age Security?

The Old Age Security program is a monthly payment available to most Canadians and legal residents aged 65 and older who meet specific residency requirements. As of 2025, the maximum monthly OAS payment is $713.34, though the amount you receive depends on how long you've lived in Canada after age 18.

OAS is a non-contributory benefit, meaning you don't pay into it during your working years. However, it is taxable income and may be subject to the OAS clawback if your income exceeds certain thresholds.

Basic OAS Eligibility Requirements

To qualify for OAS, you must meet all of the following criteria:

1. Age Requirement

You must be 65 years of age or older. The OAS eligibility age was gradually increased from 65 to 67 between 2023 and 2029, but this change was reversed, and the eligibility age remains at 65.

2. Legal Status in Canada

You must be a Canadian citizen or legal resident of Canada when your pension begins. If you're living outside Canada, you may still be eligible if you meet certain conditions.

3. Residency Requirements

This is where it gets more complex. The residency requirement depends on where you live when you apply:

Living in Canada:

• You must have resided in Canada for at least 10 years after age 18
• For a full pension, you need 40 years of residence in Canada after age 18
• If you have less than 40 years, you'll receive a partial pension (1/40th of the full pension for each year of residence)

Living Outside Canada:

• You must have resided in Canada for at least 20 years after age 18
• Your pension may be subject to a 25% non-resident tax

How Much OAS Will You Receive?

Your OAS pension amount depends on how long you've lived in Canada after turning 18:

• Full Pension: If you've lived in Canada for 40 years or more after age 18, you'll receive the maximum amount ($713.34 per month as of 2025)
• Partial Pension: If you've lived in Canada for 10-39 years after age 18, you'll receive 1/40th of the full pension for each year of residence

For example, if you lived in Canada for 30 years after age 18, you would receive 30/40 = 75% of the full pension.

Understanding Residence for OAS Purposes

Residence for OAS purposes means your primary place of residence where you normally live. Several factors determine residence:

• Where you maintain your principal residence
• Where your family lives
• Where your personal belongings are located
• Where you have social and economic ties
• Your intention regarding residence

Temporary Absences

Short-term absences from Canada (such as vacations or business trips) don't usually affect your residence status. However, extended absences may impact your eligibility.

How to Apply for OAS

Unlike some other government benefits, OAS is not automatic. You must apply to receive it.

When to Apply

You should apply for OAS up to 11 months before you want your pension to start and no later than 6 months after your 65th birthday to avoid delays in payment.

How to Apply

You can apply for OAS in several ways:

• Online: Through My Service Canada Account (fastest method)
• By Mail: Complete the application form and mail it to Service Canada
• In Person: Visit a Service Canada office

Required Documents

When applying for OAS, you'll typically need:

• Social Insurance Number
• Birth certificate or other proof of birth
• Proof of Canadian citizenship or legal status
• Banking information for direct deposit
• Marriage certificate (if applicable)
• Immigration documents (if applicable)
• Documentation of residence periods

The OAS Clawback

OAS benefits may be reduced or eliminated if your annual income exceeds certain thresholds. This is known as the OAS recovery tax or "clawback."

For 2025, the clawback begins when your net income exceeds $90,997. You must repay 15 cents for every dollar of income above this threshold. If your income reaches $148,065, your entire OAS pension is clawed back.

Strategies to Minimize the Clawback

• Income splitting with your spouse
• Contributing to RRSPs to reduce taxable income
• Timing of RRIF withdrawals
• Deferring OAS if you have high income

Deferring Your OAS Pension

You can choose to defer your OAS pension for up to 60 months (5 years) after you become eligible. For each month you defer, your pension increases by 0.6%, up to a maximum increase of 36% at age 70.

Deferring OAS makes sense if:

• You're still working and earning a high income
• Your income would trigger the OAS clawback
• You want to maximize your lifetime benefits

Guaranteed Income Supplement (GIS)

If you're receiving OAS and have a low income, you may also qualify for the Guaranteed Income Supplement (GIS). GIS provides additional monthly payments to help ensure a minimum income level for seniors.

GIS eligibility is based on your annual income and that of your spouse or common-law partner. The benefit is not taxable and is adjusted quarterly based on inflation.

International Considerations

Canada has social security agreements with many countries that can help you qualify for OAS if you've lived or worked in multiple countries. These agreements can:

• Help you meet the minimum residency requirements
• Allow you to receive benefits while living abroad
• Prevent double taxation of benefits

Common OAS Application Mistakes

1. Applying Too Late

Applying late can result in delayed payments and lost benefits. OAS is not retroactive beyond 11 months.

2. Incomplete Documentation

Missing or incomplete documentation can delay your application. Ensure you have all required documents before applying.

3. Not Understanding Residency Requirements

Many applicants don't fully understand what counts as residence for OAS purposes, leading to incorrect applications.

4. Forgetting About International Agreements

If you've lived in multiple countries, you may be eligible for benefits under international social security agreements.

Key Takeaways

• OAS is available to most Canadian residents aged 65 and older
• You need at least 10 years of residence in Canada after age 18 to qualify
• A full pension requires 40 years of Canadian residence after age 18
• You must apply for OAS – it's not automatic
• Apply up to 11 months before you want payments to start
• High-income earners may face the OAS clawback
• You can defer OAS up to age 70 for higher monthly payments
• International social security agreements may help you qualify

Understanding OAS eligibility is crucial for retirement planning. Don't assume you'll automatically receive benefits – take the time to understand the requirements and apply in advance. If you have questions about your specific situation, especially if you've lived outside Canada or have complex residency history, consider seeking professional advice to ensure you receive all the benefits you're entitled to.