For many older Canadians, the Old Age Security (OAS) program serves as a crucial financial support system. With the rising cost of living and growing financial demands, receiving payments on time is essential. If you want to know when your next OAS payment will arrive or how much you’ll receive, this guide has all the necessary details.

What is OAS?

The Old Age Security program is a government-funded pension that provides financial support to seniors in Canada. It is designed to help individuals aged 65 and older with their living expenses during retirement. Unlike the Canada Pension Plan (CPP), this program does not require contributions from workers. Instead, it is funded through general tax revenue collected by the government.

Eligibility depends on age, residency, and citizenship status rather than work history. To qualify, a person must be 65 or older and either a Canadian citizen or permanent resident. They must have lived in Canada for at least 10 years after turning 18 if they are currently residing in the country. For those living outside Canada, a minimum of 20 years of residence after turning 18 is required.

Most people are automatically enrolled at age 64 and receive a notification letter. If not automatically registered, an application must be submitted online or by mail. Payments are issued monthly and may be adjusted based on income level, with higher earnings possibly reducing the amount received. This pension plays a crucial role in providing financial stability to seniors, ensuring they have basic support for daily expenses during retirement

OAS and CPP payments are sent on the same days.

OAS Payment Dates for 2025

Payment for February 2025 is scheduled for February 27, 2025, for eligible recipients. Seniors who qualify for the program will receive their payments either via direct deposit or cheque, depending on their chosen payment method with the Canada Revenue Agency (CRA).

For those using direct deposit, the funds should be available on the scheduled date. If receiving payment by cheque, it will be mailed around the payment date, though delivery might take a few extra days.

Here are the dates in 2025:

How Much OAS Will You Get?

OAS payments increase every three months based on the cost of living. The amount depends on:

1. How Long You Have Lived in Canada – If you have lived in Canada for 40 years after turning 18, you may get the full amount. If you have lived in Canada for fewer years, you may get a smaller amount.
2. When You Start OAS – You can start at 65 or wait up to age 70 for a higher monthly payment. Below is an example based on the July–September 2024 maximum payment of $718.33:

Should You Wait to Start This Pension?

Delaying the start of this pension can increase your monthly payments. However, after age 70, there are no further increases. If you are over 70 and have not yet applied, it is best to do so immediately to avoid missing payments.

Is This Pension Taxable?

Yes, payments from this program are subject to tax. You can choose to have taxes deducted from your monthly payments or pay them later when filing your tax return.

Pension Recovery Tax: Do You Need to Pay Back?

Individuals with a high income may have to return part or all of their payments through a pension recovery tax. The amount to be repaid is based on yearly earnings. Below are the limits for 2024:

• Income where repayment starts: $90,997
• Full repayment limit (age 65-74): $151,668
• Full repayment limit (age 75+): $157,490

For example, if your income in 2024 was $120,000, you would repay 15% of the excess amount ($120,000 – $90,997 = $29,003). The total repayment would be $4,350.45, spread over 12 months.

How to Reduce or Avoid Pension Recovery Tax

Here are some ways to lower repayment:

• Share pension income with a lower-earning spouse
• Withdraw from your RRIF using your younger spouse’s age
• Plan your retirement income to keep taxable earnings lower