As the cost of living continues to rise in Canada, Old Age Security (OAS) remains a crucial source of financial support for seniors. In May 2025, updated payment amounts, eligibility requirements, and tax rules have been confirmed.
Whether you’re already receiving benefits or planning to apply, understanding the latest updates ensures you maximize your retirement income.
What is the Old Age Security (OAS) Program?
The Old Age Security (OAS) program is a government-funded pension offered to Canadians aged 65 and older.
Unlike the Canada Pension Plan (CPP), which is based on employment contributions, OAS is funded entirely through general tax revenues. Eligibility is based on age, citizenship or legal residency, and years of residence in Canada.
Canada’s Three-Pillar Retirement Income System
Canada’s retirement system is structured around three key components:
- OAS: The foundation—government-funded pension.
- CPP/QPP: Employment-based earnings-related pensions.
- Private Savings: Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), and employer pensions.
This three-tiered approach ensures broader coverage and better financial stability for retirees.
OAS Eligibility Requirements (May 2025)
To qualify for OAS in May 2025, individuals must meet these conditions:
If living in Canada:
- Be 65 years or older
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years since age 18
If living outside Canada:
- Must have been a Canadian citizen or legal resident before departure
- Must have lived in Canada for at least 20 years after age 18
Delayed OAS Advantage:
You can delay OAS payments up to age 70 and increase your monthly amount by 0.6% per month (up to 36% total).
How Much Will You Receive in May 2025?
Payment amounts are indexed quarterly to reflect inflation. Here’s what seniors can expect for May 2025:
| Age Group | Monthly OAS Payment |
|---|---|
| 65 to 74 years | Up to $727.67 |
| 75 years and older | Up to $800.44 |
| Payment Date | May 29, 2025 |
Note: These are maximum amounts. Your actual payment depends on your residency history and income.
Taxation and the OAS Clawback
Are OAS Payments Taxable?
Yes, OAS payments are taxable and must be declared as income on your annual tax return.
OAS Recovery Tax (Clawback):
If your net income exceeds $86,912, your OAS is reduced by 15% of the excess amount.
| Age Group | Clawback Begins | Fully Eliminated At |
|---|---|---|
| 65–74 years | $86,912 | $142,609 |
| 75+ years | $86,912 | $148,179 |
Guaranteed Income Supplement (GIS) – May 2025
For low-income seniors, the GIS provides a non-taxable monthly payment on top of OAS.
GIS Income Limits:
| Situation | Annual Income Limit |
|---|---|
| Single senior | Under $21,624 |
| Couple (both on OAS) | Under $28,560 |
| Couple (only one on OAS) | Under $51,840 |
Actual GIS payments vary based on income and marital status. Use the official calculator for exact estimates.
How to Apply for OAS in 2025
Not Automatically Enrolled? Follow These Steps:
Online Application:
- Log in to your My Service Canada Account
- Fill and submit the OAS form digitally
Paper Application:
- Download the application form from the government website
- Mail it along with required documents
In May 2025, Old Age Security payments continue to be a vital part of retirement planning for Canadian seniors.
With up to $800.44/month, cost-of-living adjustments, and GIS support for low-income individuals, staying informed is key to optimizing your benefits.
Don’t forget to review your income level to avoid clawbacks and apply early if you’re nearing age 65.
FAQs
When will OAS payments be issued in May 2025?
OAS payments are scheduled for May 29, 2025.
Is the OAS amount the same for everyone?
No, it varies based on age, income level, and years of Canadian residency.
Can I delay my OAS payments for a higher monthly amount?
Yes, delaying past age 65 can increase your OAS by up to 36%.