For Canadian seniors, the Old Age Security (OAS) pension is a cornerstone of retirement income. It is one of the most widely accessible federal benefits, designed to provide a basic level of financial support in retirement. In 2025, questions around when to start OAS payments remain important. While many take OAS as soon as they turn 65, others delay to boost their monthly income.
Understanding how OAS works, when payments begin, and how timing decisions affect your retirement income can help you make the most of this benefit.
When Do OAS Payments Start?
OAS is not tied to employment history but rather to residency in Canada. To qualify, you generally need to have lived in Canada for at least 10 years after the age of 18. To receive the full OAS pension, you must have lived in Canada for 40 years after age 18.
By default, OAS payments begin the month after you turn 65. For example, if you celebrate your 65th birthday in July 2025, your first payment would typically arrive in August 2025.
Most eligible seniors are automatically enrolled, though some may need to apply if their residency history requires verification.
How Much Is OAS in 2025?
As of 2025, the maximum OAS pension at age 65 is $713.34 per month. This amount is reviewed and adjusted quarterly to keep up with inflation.
For seniors aged 75 and older, an extra 10% is added, recognising higher living and healthcare costs in later years. This means older seniors can receive more than $780 monthly.
What If You Take OAS Early?
Unlike the Canada Pension Plan (CPP), OAS cannot be taken before age 65. The earliest you can begin is the month after your 65th birthday.
However, you do have the option to delay OAS up to age 70. If you delay, your monthly payment increases by 0.6% for each month delayed, or 7.2% per year. Over five years, this adds up to a maximum increase of 36%.
For example:
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At 65: $713.34/month.
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At 70: About $970/month.
This option benefits those who expect to live longer and want a higher guaranteed monthly income later in life.
When to Delay OAS
Delaying OAS can be a smart strategy in certain situations:
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You’re still working at 65: Higher income from work may push you into a tax bracket where OAS is partially clawed back. Waiting reduces clawback risk.
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You have other income sources: If pensions, savings, or RRSPs cover expenses at 65, delaying OAS boosts future security.
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You expect a long lifespan: If you are in good health and expect to live into your 80s or 90s, the higher delayed payments are likely to outweigh starting early.
On the other hand, if you need the money immediately or face health issues that may limit longevity, starting OAS at 65 makes more sense.
OAS and the Clawback
High-income seniors should be aware of the OAS Recovery Tax, commonly called the clawback. In 2025, if your net income is above about $90,997, your OAS will begin to be reduced. If your income is very high, OAS may be eliminated completely.
This makes timing even more important. Delaying OAS until after retirement, when income may be lower, can help reduce clawback exposure.
Combining OAS With Other Benefits
OAS often works alongside other federal programs:
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Canada Pension Plan (CPP) – Earnings-based pension.
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Guaranteed Income Supplement (GIS) – For low-income seniors, adding more than $1,100/month in 2025.
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Allowance and Survivor Benefits – For spouses or widows/widowers.
By carefully timing OAS with CPP and GIS, seniors can maximise their combined retirement income.
Tips for Maximising OAS in 2025
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Check your eligibility early: Ensure you have enough residency years to qualify for full OAS.
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Consider delaying: If possible, waiting until 70 boosts payments by up to 36%.
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Monitor your income: Keep taxable income below the clawback threshold if you want to protect OAS payments.
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Plan with CPP: Coordinate OAS and CPP timing for a balanced retirement income strategy.
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Reassess annually: Life circumstances may change—health, income, and family needs should guide your decision.
Why Timing Matters
For some, OAS may only cover a fraction of retirement expenses. But for many seniors, it forms the foundation of retirement income. Deciding whether to take it at 65 or delay until later can affect monthly budgets for decades.
A senior who delays may collect fewer years of OAS but receive more per month. Meanwhile, someone who starts at 65 enjoys payments right away but at a lower rate. The best choice depends on personal health, income levels, and retirement goals.
FAQs
When do OAS payments start in 2025?
They start the month after your 65th birthday.
Can I take OAS before age 65?
No. The earliest age to start OAS is 65.
How much is OAS at 65 in 2025?
The maximum monthly OAS pension is $713.34, adjusted quarterly for inflation.
How much more do I get if I delay OAS?
Payments increase by 0.6% per month delayed, up to 36% more at age 70.
What is the OAS clawback?
It reduces or eliminates OAS for seniors earning above $90,997 in net income.
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