Check out the details about OAS Maximum 2025: Increase, Clawback, Rates, Limits, Maximum Contribution and More from this article. Different information about OAS Maximum 2025: Increase, Clawback, Rates, Limits, Maximum Contribution and More and other notable things are included in this article.
OAS Maximum 2025
Old Age Security (OAS) is a pension that senior citizens in Canada can get if they qualify. Unlike the CPP Retirement Pension, people who have never worked before can get the OAS Pension.
The maximum payments for OAS pension are set to increase by 0.8% in the first quarter of 2025. Beneficiaries of OAS pension will be able to see increased monthly payments starting May 2025.
OAS Overview
| Name | Old Age Security |
| Type | Public Pension |
| Country | Canada |
| Administering Body | Service Canada |
| Age Requirements | 65 years or older |
| Maximum Payment (Oct-Dec 2023) | $707.68 (65 – 74) | $778.45 (75 or older) |
| OAS Clawback 2025 (Minimum) | $86,912 |
| OAS Clawback 2025 (Maximum) | $142,609 (65-74) and $148,179 (75 or older) |
| For more information | canada.ca |
OAS Increase 2025
OAS increase of 0.8% will be effective throughout the first quarter of 2025, i.e., May to May 2025. After this, the payments will be adjusted again, and the new maximum and minimum payments of OAS will be published by the Canadian Government on its authorized website.
Additionally, people who are receiving Guaranteed Income Supplements or Allowances will also see an increase in their monthly payments in 2025.
The increase in OAS Maximum and Minimum Payments depends on the changes in CPI. For example, the change in CPI created an increase of 1.3% in OAS for the Oct-Dec payment period, as compared to the Jul-Sep payment period.
OAS Clawback 2025
Clawback or Recovery Tax is applied to the OAS pension when the annual income of a pensioner goes over a set threshold. This threshold changes with each tax year.
For 2025, the minimum OAS Clawback is set at $86,912, whereas the maximum OAS Clawback is set at $142,609 (65-74) and $148,179 (75 or older).
The minimum OAS Clawback in 2023 was $81,761, and the maximum was $134,626 (65-74) and $137,331 (75 or older).
Depending on how much income has exceeded above the threshold, people may have to pay back either their entire OAS pension, or some part of it.
Also, people have to pay a recovery tax on their OAS pension if they live in a country where the non-resident tax on Canadian Pensions is 25% or more.
If the income goes over the clawback limit, people have to pay a 15% tax on the exceeded amount. More information on the OAS Clawback 2025 can be obtained from the authorized website of the Government of Canada.
OAS Maximum Rates 2025
The maximum rates of OAS for 2025 are yet to be published by the Canadian Government. The new rates for the OAS are likely to be provided by the end of May 2023.
However, people can still check the current rates of payment applicable for the May to May 2023 payment period.
People who are aged between 65 years and 74 years can get $707.68 per month, whereas people who are aged over 75 can get a maximum of 778.45 per month.
The maximum rates for OAS are payable when a person meets the age as well as income criteria. As the income goes over a set threshold, the monthly payable amount of OAS keeps decreasing till it exceeds the maximum threshold of income. When it exceeds aches the maximum income threshold, people can no longer receive an OAS pension due to ineligibility.
OAS Maximum Contribution and More
People who delay their OAS Pension till 70 can receive a higher monthly pension. A person can delay their OAS pension up to 5 years in order to receive a higher amount.
The amount that a person can get does not depend on their employment history. In fact, people are not required to have been doing any work in the past to get an OAS pension.
Also a person can also receive an OAS pension even if they are currently working. However, they should keep in mind that their income can reduce their OAS pension if it exceeds the threshold.
A person who lived in Canada for at least ten years since turning 18, aged 65 or older, and a citizen of Canada is usually eligible to get an OAS pension.
People can estimate their monthly OAS payment amounts through a tool offered by Service Canada. People can use this tool to check when they will become eligible, how their monthly payments may change based on their situation, and the impacts of deferring their pension.
To use this tool, people need the following information – Age, Net Income, Spouse/Common-law partner, residential history, legal status, and marital status.