Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) are government retirement benefits available to most Canadians aged 65+. Unlike CPP, OAS is not based on contributions — it’s based on years of Canadian residency.

OAS Payment Amounts (2026)

Recipient	Maximum Monthly OAS
Age 65–74	$727.67
Age 75+	$800.44 (10% increase)

OAS is adjusted quarterly for inflation. These are maximum amounts for those with 40+ years of Canadian residency.

OAS Eligibility

Requirement	Living in Canada	Living Outside Canada
Minimum age	65	65
Minimum residency	10 years after age 18	20 years after age 18
Full pension (40 years)	40 years residence after age 18	40 years residence after age 18
Partial pension	10-39 years (proportional)	20-39 years (proportional)

Partial OAS Examples

Years in Canada (after 18)	OAS Amount (% of maximum)	Monthly Payment (age 65-74)
10 years	25%	$182
15 years	37.5%	$273
20 years	50%	$364
25 years	62.5%	$455
30 years	75%	$546
35 years	87.5%	$637
40+ years	100%	$728

OAS Clawback (Recovery Tax)

If your individual net income exceeds a threshold, OAS is clawed back at 15%:

Income Level (2026)	OAS Clawback	Monthly OAS Remaining (age 65-74)
Under $90,997	$0	$728 (full)
$95,000	$600/year	$678
$100,000	$1,350/year	$615
$110,000	$2,850/year	$490
$120,000	$4,350/year	$365
$130,000	$5,850/year	$240
$142,000	$7,650/year	$90
~$148,000+	Full clawback	$0

For every dollar of income above $90,997, you lose 15 cents of OAS.

Deferring OAS

You can delay OAS from age 65 to age 70 for a higher payment:

Start Age	Monthly Increase	Maximum Monthly (65-74 base)
65	0%	$728
66	+7.2%	$780
67	+14.4%	$832
68	+21.6%	$885
69	+28.8%	$938
70	+36%	$990

Deferral Breakeven

Comparison	Breakeven Age
Start at 65 vs 67	~79
Start at 65 vs 70	~82

If you live past 82, deferring to 70 pays more total. If health or finances mean you need income sooner, start at 65.

Guaranteed Income Supplement (GIS)

GIS is a tax-free supplement for low-income OAS pensioners:

Maximum GIS Amounts (2026)

Situation	Maximum Monthly GIS
Single, divorced, or widowed	$1,065.47
Spouse receives full OAS	$641.35
Spouse does not receive OAS	$1,065.47
Spouse receives Allowance	$641.35

GIS Income Thresholds

GIS is reduced based on income (excluding OAS):

Annual Income (excl. OAS)	GIS Amount (Single)	OAS + GIS Combined Monthly
$0	$1,065	$1,793
$5,000	$815	$1,543
$10,000	$565	$1,293
$15,000	$315	$1,043
$21,624+	$0	$728 (OAS only)

For couples, the combined income threshold is higher.

GIS Income Exemptions

Income Source	Treatment
OAS payments	Fully excluded
First $5,000 of employment income	Excluded
Next $10,000 of employment income	50% excluded
CPP/QPP income	Included
RRSP/RRIF withdrawals	Included (counts as income)
TFSA withdrawals	Excluded (tax-free, doesn’t count)
GIS payments	Excluded
Investment income	Included

⚡ TFSA withdrawals don’t affect GIS — this is a major planning advantage for low-income retirees.

Total Government Retirement Income

Scenario	CPP/Month	OAS/Month	GIS/Month	Total/Month	Total/Year
Maximum CPP + full OAS (no GIS)	$1,433	$728	$0	$2,161	$25,932
Average CPP + full OAS + partial GIS	$815	$728	$400	$1,943	$23,316
Low CPP + full OAS + full GIS	$400	$728	$1,065	$2,193	$26,316
No CPP + full OAS + full GIS	$0	$728	$1,065	$1,793	$21,516

The Allowance

The Allowance is for spouses/common-law partners of GIS recipients:

Benefit	Amount	Eligibility
Allowance	Up to $1,354/month	Age 60-64, spouse receives OAS+GIS, low income
Allowance for the Survivor	Up to $1,614/month	Age 60-64, widowed, low income

The Allowance stops at age 65 when you qualify for OAS and GIS yourself.

Strategies to Maximize OAS + GIS

1. Prioritize TFSA Over RRSP If GIS-Eligible

Strategy	Impact on GIS
Withdraw from RRSP/RRIF	Counts as income → reduces GIS
Withdraw from TFSA	Tax-free, NOT counted → preserves GIS

For low-income retirees, every $1 from an RRSP reduces GIS by 50 cents (on top of tax).

2. Deplete RRSP Before Age 65

Action	Benefit
Convert RRSP to RRIF before 65	Lower GIS-reportable income at 65
Withdraw RRSP at lower tax rates (early retirement)	Pay less tax now, preserve GIS later
Move RRSP to TFSA (via withdrawal + re-contribution)	Future withdrawals won’t affect GIS

3. Income Splitting

Strategy	Detail
CPP sharing (both 60+)	Equalize CPP between spouses to reduce clawback
Pension income splitting	Split eligible pension income 50/50
OAS deferral (spouse)	If one spouse has higher income, defer their OAS

4. Timing of Income

Action	Impact
Defer large capital gains to pre-65	Avoids OAS clawback and GIS reduction
Sell investments in low-income years	Minimizes tax and benefit clawbacks
Time RRIF withdrawals carefully	RRIF income counts against GIS

Key Takeaways

Maximum OAS is $728/month (age 65-74) or $800/month (75+) — based on residency, not contributions
OAS is clawed back at 15% on income over ~$91,000 and fully eliminated at ~$148,000
GIS provides up to $1,065/month tax-free for low-income seniors
TFSA withdrawals don’t affect OAS or GIS — critical for retirement planning
RRSP/RRIF withdrawals count as income and can reduce or eliminate GIS
Deferring OAS to 70 increases it by 36% — breakeven around age 82
Low-income retirees can receive ~$1,793/month from OAS + GIS with no other income
Consider depleting RRSPs before 65 if GIS eligibility is likely

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OAS & GIS Guide: Old Age Security and Guaranteed Income Supplement (2026)

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