As of May 2025, the Canadian government continues to provide financial assistance to older adults through the Old Age Security (OAS) program. Amid persistent inflation and growing living expenses, seniors must stay up-to-date with changes to benefits, eligibility rules, and income thresholds.
The OAS program plays a vital role in Canada’s three-tiered retirement system and remains a key income stream for retired Canadians.
What Is the Old Age Security Program?
The Old Age Security (OAS) program is a non-contributory pension, fully funded by the federal government, designed to provide financial assistance to Canadians aged 65 and older.
Unlike the Canada Pension Plan (CPP), Old Age Security (OAS) is not linked to employment history. Instead, eligibility is determined by age, legal status, and years of residency in Canada
Canada’s Three-Pillar Retirement System
Canada’s retirement income system includes:
- OAS: Government-funded baseline pension
- CPP/QPP: Employment-based pension plans
- Private Savings: RRSPs, TFSAs, employer pensions
These pillars work together to ensure financial stability in retirement. Old Age Security (OAS) provides a foundation, while CPP/QPP and private savings help maintain lifestyle and cover extra costs.
OAS Eligibility Criteria for May 2025
To qualify for Old Age Security (OAS) payments in May 2025, individuals must meet these requirements:
- If Residing in Canada:
- Be 65 years or older
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years after turning 18
- If Residing Outside Canada:
- Must have been a Canadian citizen or legal resident before leaving
- Must have lived in Canada for at least 20 years after age 18
Optional Delay Advantage: Postponing Old Age Security (OAS) beyond age 65 increases monthly payments by 0.6% per month, up to a 36% total increase if delayed until age 70.
May 2025 OAS Payment Amounts
Due to ongoing cost-of-living adjustments:
- Seniors aged 65–74: Up to $727.67/month
- Seniors aged 75 and over: Up to $800.44/month
Note: Not all recipients qualify for the full amount. Individuals with less than 40 years of Canadian residency after age 18 receive prorated payments.
OAS Payment Schedule
The Old Age Security (OAS) payment for May 2025 is scheduled for May 28, 2025.
Are OAS Payments Taxable?
Yes, Old Age Security (OAS) payments are considered taxable income. Seniors must report them on their annual tax return.
OAS Clawback (Recovery Tax):
- Begins at: $86,912 net income
- Reduces payments by: 15% of the excess amount
- Entire benefit phased out at:
- $142,609 (ages 65–74)
- $148,179 (ages 75+)
What Is the Guaranteed Income Supplement (GIS)?
GIS is a non-taxable monthly supplement for low-income seniors receiving Old Age Security (OAS). It ensures added support for those with minimal or no other income sources.
2025 GIS Income Limits:
| Situation | Annual Income Limit |
|---|---|
| Single senior | Under $22,056 |
| Couple (both on OAS) | Under $29,136 combined |
| Couple (one on OAS) | Under $52,848 combined |
Note: Exact GIS amounts vary by individual situation. Use the government’s GIS calculator to estimate your benefit.
How to Apply for OAS in 2025
Not every eligible Canadian is automatically enrolled in Old Age Security (OAS). Here’s how to apply:
- Online Application:
- Access your My Service Canada Account
- Complete and submit the Old Age Security (OAS) application digitally
- Paper Application:
- Download the form from the official website
- Send the completed application with documentation by mail
The Old Age Security program continues to be a fundamental part of financial planning for Canadian seniors in 2025. With higher living costs and an aging population, understanding updated Old Age Security (OAS)payment amounts, eligibility rules, and income supplements like the GIS is crucial.
Staying informed ensures that seniors can make the most of available support and avoid unexpected tax implications or lost benefits.
FAQs
Can I receive Old Age Security (OAS) if I live outside Canada?
Yes, if you were a Canadian citizen or legal resident before leaving and have lived in Canada for at least 20 years after age 18.
How does delaying OAS payments benefit me?
Delaying Old Age Security (OAS)beyond age 65 increases your monthly payment by 0.6% for each month delayed, up to a maximum of 36% at age 70.
Is GIS automatically added to my OAS payments?
No, you must apply for GIS separately, even if you receive Old Age Security (OAS).