The Old Age Security (OAS) Maximum 2025 rates have been officially released, bringing significant changes that affect millions of Canadians. Whether you’re preparing for retirement, helping elderly relatives, or working with clients as a financial advisor, understanding these updates is crucial.
A small mistake in your understanding could cost you hundreds or even thousands of dollars in lost benefits every year.
In this guide, we’ll break down the OAS payment amounts, eligibility, clawback thresholds, and supplementary programs such as the Guaranteed Income Supplement (GIS) and OAS Allowance.
We’ll also provide practical tips and examples to help you make well-informed financial decisions.
OAS 2025: Key Highlights
New OAS Payment Rates for 2025
The following OAS maximum payment rates are set for 2025:
| Feature | Details | Reference Link |
|---|---|---|
| OAS Monthly (Ages 65–74) | $727.67 | Canada.ca |
| OAS Monthly (Ages 75+) | $800.44 | Canada.ca |
| OAS Clawback Threshold | $93,454 | Canada.ca |
| OAS Clawback Ends (Ages 65–74) | $151,668 | Canada.ca |
| OAS Clawback Ends (Ages 75+) | $157,490 | Canada.ca |
| GIS Maximum (Single) | $1,086.88 | Canada.ca |
| Allowance for Spouses or Survivors | Up to $1,647.34 | ATB.com |
The OAS is updated regularly to keep pace with inflation. In 2025, the payment amounts reflect this annual adjustment to ensure seniors can keep up with the rising cost of living.
Understanding OAS: What’s New in 2025
What is OAS?
Old Age Security (OAS) is one of Canada’s main public pension programs. Unlike the Canada Pension Plan (CPP), which is based on contributions made during your working years, OAS is funded through general tax revenues. It’s available to Canadian seniors who meet specific age and residency requirements.
For 2025, the OAS benefits have been adjusted in response to economic pressures, including inflation. These changes are designed to help seniors who are most impacted by rising living costs.
OAS Payments for 2025: The Key Updates
The following are the updated maximum OAS payment rates for 2025:
- Ages 65 to 74: $727.67 per month
- Ages 75 and older: $800.44 per month
These amounts are indexed quarterly to the Consumer Price Index (CPI), ensuring the payments remain relevant to the prevailing inflation rate.
Example:
Mary, who is 76, qualifies for the maximum OAS because she has lived in Canada for over 40 years. In 2025, she will receive $800.44/month, which amounts to $9,600 annually.
If you’ve lived in Canada for fewer than 40 years after turning 18, you might be eligible for a partial OAS pension.
OAS Clawback Rules: How They Affect Your Payments
What is the OAS Clawback?
The OAS Recovery Tax, or clawback, kicks in when your income exceeds a certain threshold. If your net world income exceeds $93,454, your OAS payments will be reduced by 15% of every dollar above this threshold.
Clawback Thresholds for 2025:
- Ages 65–74: Full clawback starts at $151,668
- Ages 75+: Full clawback starts at $157,490
How the Clawback Works
Here’s an example to illustrate how the clawback works:
- John has an annual income of $100,000.
- Income over threshold: $100,000 – $93,454 = $6,546
- OAS clawback: 15% of $6,546 = $981.90 annually
- Monthly reduction: $981.90 ÷ 12 = $81.83
This amount will be automatically deducted when you file your taxes, reducing the monthly OAS you receive.
Minimize or Avoid the Clawback: Strategies for Seniors
Here are some strategies you can use to reduce your taxable income and preserve more of your OAS:
- Defer OAS to age 70 to receive up to 36% more monthly payments.
- Income splitting with your spouse to reduce individual income.
- Convert RRSPs to RRIFs gradually to spread out your income.
- Donate to registered charities to receive tax credits.
Consult a financial planner or tax professional if you’re worried about losing part of your OAS benefits.
Guaranteed Income Supplement (GIS) in 2025
For low-income seniors who are already receiving OAS, the Guaranteed Income Supplement (GIS) offers additional financial support. The GIS is a non-taxable benefit and is adjusted annually based on your income and marital status.
2025 GIS Maximum Payments
| Marital Status | Maximum GIS Payment | Reference Link |
|---|---|---|
| Single, Widowed, or Divorced | $1,086.88 | Canada.ca |
| Married/Common-Law (Both on OAS) | $654.23 | Canada.ca |
| Married (Only One Spouse on OAS) | $1,086.88 | Canada.ca |
Eligibility for GIS is reassessed annually, based on the previous year’s income, so it’s important to ensure your income is reported accurately to avoid disruptions in your GIS payments.
Tip: Use the Old Age Security Estimator available on Canada.ca to check which benefits you might qualify for.
OAS Allowance and Survivor Benefit (Ages 60–64)
In addition to the OAS and GIS, the Canadian government offers further support to individuals between ages 60-64 who are either low-income or have lost a spouse.
2025 OAS Allowance Programs
| Feature | Maximum Allowance Payment | Reference Link |
|---|---|---|
| Allowance | Up to $1,381.90/month | Canada.ca |
| Allowance for Survivor | Up to $1,647.34/month | Canada.ca |
To be eligible, you must:
- Live in Canada
- Be a Canadian citizen or legal resident
- Have a household income below the allowable threshold
Applying for OAS, GIS, and Allowance
If you’re nearing 64, you may be automatically enrolled in OAS if Service Canada has your information. If not, you’ll need to apply through one of the following methods:
- Online via My Service Canada Account
- By mail using the paper application (Form ISP-3000)
- In person at a Service Canada Centre
For GIS and Allowance, these must be applied for separately and renewed annually, as eligibility depends on your income.
The 2025 OAS changes are significant for many Canadians, and staying updated on these adjustments can make a big difference in your retirement planning.
From understanding how the clawback works to applying for GIS and Allowance, this guide provides the tools you need to navigate the system effectively. For personalized advice, it’s always a good idea to consult with a financial advisor.
FAQs
What is the OAS Clawback Threshold for 2025?
The OAS clawback begins when your net world income exceeds $93,454. Full clawback occurs when income reaches $151,668 for ages 65-74 and $157,490 for those 75+.
How Can I Minimize OAS Clawback?
You can reduce your taxable income by deferring OAS, splitting income with your spouse, donating to charities, or converting RRSPs to RRIFs gradually.
What Is the GIS Maximum in 2025?
For single individuals, the maximum GIS payment is $1,086.88. For couples, the amount varies depending on both individuals receiving OAS.