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

CPP, OAS, and GIS: Maximize your public retirement benefits with our CPP, OAS, and GIS Guide.

For full benefit timing, clawback planning, and retirement income sequencing, see the CPP and OAS hub.

Old Age Security (OAS) pays a maximum of $762.50 per month for Canadians aged 65–74 in the October to December 2026 quarter, rising to $838.75 per month at age 75. The Guaranteed Income Supplement (GIS) adds up to $1,138.90 per month (single person receiving OAS) tax-free for seniors with little or no other income. Unlike CPP, OAS is not based on contributions — it’s based on years of Canadian residency after age 18, and most Canadians who have lived here for 40+ years receive the full amount automatically.

OAS Payment Amounts (October to December 2026)

OAS is adjusted quarterly for inflation using the Consumer Price Index — amounts are reviewed each January, April, July, and October and rise when prices rise (but never decrease). The 10% boost at age 75 was introduced in 2022 as a permanent increase, not a one-time benefit. If you deferred past 65, your higher deferred amount receives the same 10% uplift at 75.

OAS Eligibility

To qualify for any OAS you must have lived in Canada for at least 10 years after turning 18 (20 years if you live outside Canada at the time you apply). Each year of residency earns you 1/40th of the maximum pension, so 20 years of residency gives you exactly 50% of the maximum. Canadians who immigrated later in life or spent significant time abroad may receive a partial OAS — the table below shows approximate monthly amounts, rounded to the nearest dollar.

Partial OAS Examples

For example, a Canadian who immigrated at age 30 and started OAS at 65 (35 years of residency after age 18) would receive 87.5% of the maximum — about $667/month at age 65–74 (based on the October to December 2026 maximum). Residency years do not need to be consecutive; they accumulate over your lifetime after age 18.

OAS Clawback (Recovery Tax)

If your individual net income exceeds a threshold, you repay part or all of your OAS through a 15% recovery tax. The table shows 2026 net income, which is repaid through reduced OAS from July 2027 to June 2028; monthly amounts are approximate and use the October to December 2026 maximum:

For every dollar of income above $95,323 (the 2026 net income threshold), you repay 15 cents of OAS. The clawback is calculated on a calendar year’s net income and applied as a reduction to your OAS payments over the July–June period that starts the following July — it is not withheld immediately. High-income retirees with investment income, large RRIF withdrawals, or capital gains from property sales should plan around this threshold carefully. One key planning tool: if you are married and one spouse has lower income, structuring income withdrawals to keep the higher earner below $95,323 (the 2026 net income threshold) can preserve their full OAS.

Deferring OAS

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

Deferring OAS is one of the most straightforward longevity bets in Canadian retirement planning. Each month you delay past age 65 adds 0.6% to your permanent OAS rate (7.2%/year). At 70, your OAS is 36% higher for life — and also 36% higher when the 10% age-75 uplift applies. The decision comes down to your health, your other income sources, and whether you need the money immediately.

Deferral Breakeven

If you live past 84, 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. It is one of the most valuable — and most underutilized — benefits in the Canadian retirement system. Many seniors who qualify don’t apply because they don’t know it exists or assume they earn too much. GIS is recalculated each July based on your net income in the previous calendar year, so a lower-income year can raise your payment.

Maximum GIS Amounts (October to December 2026)

GIS Income Thresholds

GIS is reduced based on income (excluding OAS). For a single person receiving OAS, GIS is paid only to those with income below $23,112, the full amount goes only to those with little or no other income, and the amount shrinks as income rises; the OAS estimator on canada.ca gives the exact figure for your income:

For couples, the combined income threshold is higher — a couple where both receive the full OAS pension has GIS fully eliminated once combined non-OAS income reaches $30,528. GIS shrinks as non-OAS income rises (roughly 70 cents per dollar over the first $10,000 for a single person, about 50 cents per dollar above roughly $10,500, per the official October to December 2026 table), on top of any income tax that income triggers. This is the core reason TFSA withdrawals are so valuable for this group.

GIS Income Exemptions

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

Total Government Retirement Income

The table above illustrates a counterintuitive result: a retiree with no CPP and no other income can come close to the total income of one with average CPP — because GIS fills most of the gap. A single senior with zero CPP but full OAS and GIS receives $1,902/month ($22,824/year), while a senior with an average new CPP pension of $858/month receives about $2,159/month, because each dollar of CPP income reduces GIS. The GIS amounts come from the October to December 2026 benefit table for a single person, with CPP as the only income.

The Allowance

The Allowance is for people aged 60 to 64 whose spouse or common-law partner gets OAS and is eligible for GIS:

The Allowance is only for ages 60 to 64; at 65 you apply for OAS and, if your income is low, GIS yourself. If you are 60–64 and your spouse is 65+ and receiving OAS+GIS, apply for the Allowance through Service Canada, ideally 6 to 11 months before you turn 60. For widowed seniors aged 60–64, the Allowance for the Survivor (up to $1,726.18/month in October to December 2026) is available if you are 60 to 64, have not remarried or entered a new common-law relationship, and your income is under $31,152.

Strategies to Maximize OAS + GIS

1. Prioritize TFSA Over RRSP If GIS-Eligible

For low-income retirees, every RRSP withdrawal counts as income for GIS, so it reduces your GIS on top of the income tax you pay on the withdrawal. By contrast, a TFSA withdrawal costs you nothing in GIS and nothing in tax. This asymmetry is the single most important retirement income sequencing insight for lower-income Canadian seniors. See the RRSP calculator to model how much RRSP income you’ll need to draw.

2. Deplete RRSP Before Age 65

Converting RRSP funds to TFSA before age 65 — by making withdrawals in early retirement years when your income is lower — reduces future RRIF mandatory withdrawals that would otherwise erode GIS. Money withdrawn from an RRSP in a low-income year (taxed that year) and re-contributed to a TFSA, if room allows, no longer adds RRIF income later, and TFSA withdrawals don’t affect GIS. This strategy requires multi-year planning starting in your early 60s.

3. Income Splitting

CPP sharing lets spouses who live together move part of one retirement pension to the other, which can lower the higher earner’s net income, the figure the OAS recovery tax is based on. Pension income splitting (up to 50% of eligible pension income) works similarly. The goal is to keep both spouses below the relevant income thresholds rather than having one spouse well above and one well below.

4. Timing of Income

Large capital gains — from selling a rental property, cottage, or investment portfolio — can spike your net income well above the OAS clawback threshold in a single year. Where possible, spreading capital gains over multiple years (through installment sales or gradual portfolio rebalancing) keeps annual income below $95,323 (the 2026 threshold, which changes each year) and avoids a clawback year. Retirees with significant unrealized gains should discuss timing with a tax professional before age 65.

Worked Example: TFSA vs. RRSP Withdrawal

Marie, age 65, Alberta — 40 years of Canadian residency:

By drawing the same $10,000 from a TFSA instead of an RRSP/RRIF, Marie keeps an extra $6,984 per year in GIS ($582.00 x 12) — tax-free — and pays no tax on the withdrawal. If these amounts held for 20 years, that strategy difference would add up to roughly $140,000 in cumulative income.

Key Takeaways

1. Maximum OAS is $763/month (age 65-74) or $839/month (75+), October to December 2026 — based on residency, not contributions
2. OAS is clawed back at 15% on 2026 net income over $95,323 and fully eliminated at about $155,320 (ages 65-74)
3. GIS provides up to $1,138.90/month tax-free for low-income single pensioners (October to December 2026)
4. TFSA withdrawals don’t affect OAS or GIS — critical for retirement planning
5. RRSP/RRIF withdrawals count as income and can reduce or eliminate GIS
6. Deferring OAS to 70 increases it by up to 36% — breakeven around age 84, before tax and investment returns
7. Single retirees with no other income can receive up to about $1,901/month from OAS + GIS (maximums, October to December 2026)
8. Consider depleting RRSPs before 65 if GIS eligibility is likely

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.