All the Numbers

OAS at 75

From the All the Numbers wiki · Retirement and benefits

Since July 2022 the OAS pension is permanently 10% higher for pensioners 75 and over:[1] $838.75 a month against $762.50 for ages 65–74 in the October–December 2026 quarter.[2] The increase starts in the month after the month of the 75th birthday.[3] Like the deferral increase, it is left out of the pension used for the Guaranteed Income Supplement, so it does not reduce that benefit.[4]

What the engine does

  • Pays the 65–74 amount until the month after the 75th birthday, then the 10% higher one, whether the pension started at 65 or was deferred.[3]
  • The plan asks for a birth year, not a birthday, and takes every birthday as January 1, so the increase starts in February of the year the person turns 75. Who the plan is about explains that assumption.

What it deliberately does not

The recovery-tax upper limit is also higher at 75+; the clawback formula is unchanged and simply recovers more before it exhausts the larger pension; see the OAS recovery tax.

See also

  • Old Age Security · A monthly pension paid to most Canadians from 65, based on years lived in Canada after 18. It can be deferred for a permanent increase, rises 10% at 75 and is partly repaid through a recovery tax at high incomes.
  • The Guaranteed Income Supplement · A tax-free top-up to Old Age Security for pensioners with little other income. It falls by 50 cents for every dollar of other income (75 cents through part of the range); RRSP and RRIF withdrawals count against it, TFSA withdrawals do not. The projection estimates it on the previous year's income.
  • The OAS recovery tax · Years where net income clears the threshold repay 15% of the excess out of Old Age Security. The projection adds it to the year's return and pays it with the April balance; Service Canada takes it from the OAS payments from the next July instead, so only the timing differs.
  • Who the plan is about · A plan covers one person or two. Where a birth year is missing the plan assumes the person is 40 and born on 1 January, says so on the page, and uses that age for tax, pension and account rules until the real one is entered.

References

  1. ↑Service Canada — Old Age Security payment amounts · OAS pension increase from the month after the pensioner turns 75 · 10% · effective 2022-07-01
  2. ↑Service Canada — Old Age Security payment amounts (quarterly-indexed) · OAS maximum monthly, age 65–74 (set each quarter) · $762.50 · effective 2026-10-01
  3. ↑Old Age Security Act, s.7(5) (full pension), s.7.1(5)–(6) (deferred/partial) · The OAS increase applies "for the period that begins in the month after the month in which a person attains 75 years of age" · 75 years · effective 2022-07-01
  4. ↑Old Age Security Act, s.2.1(1)–(2) · The deferral increase and the age-75 increase are not part of the "full monthly pension" or "pensioner's monthly pension" used in the GIS formulas (s.12(5), s.12(6)(b)) · See the source · effective 2022-07-01