OAS 2026: Exactly How Much You’ll Get and How to Maximize It

Imagine you’re 63, eyeing retirement, and wondering OAS 2026 how much will actually land in your bank account each month. You’ve heard rumours about clawbacks, deferral bonuses, and confusing income thresholds — but nobody’s given you a straight answer. You’re not alone. Thousands of Canadians approaching 65 face the exact same questions, and the wrong decision could cost you tens of thousands of dollars over your retirement. In this guide, you’ll learn the exact 2026 OAS payment amounts, how to avoid the clawback, and whether deferring to 70 makes financial sense for your situation.

Quick Answer:

• The maximum OAS payment for ages 65–74 is $751.97/month ($9,023.64/year) as of the July 29, 2026 payment
• There are two different OAS clawback thresholds right now, and mixing them up is a common mistake: $93,454 (based on 2025 income, applies to payments through June 2027) and $95,323 (based on 2026 income, applies to payments starting July 2027)
• Deferring OAS from 65 to 70 increases your payment by 36% permanently — the break-even age is approximately 84, not 82–83
• Yes, you can receive CPP and OAS simultaneously — they’re separate programs

How Much Is OAS in 2026 and What Affects Your Payment?

Let’s cut straight to the numbers. As of the July 29, 2026 payment (the most recent quarterly CPI adjustment), the maximum monthly OAS payment is $751.97 if you’re between ages 65 and 74. That works out to $9,023.64 per year. If you’re 75 or older, you receive a 10% increase, bringing your maximum to $827.17 per month.

But here’s what many Canadians don’t realize: you might not get the full amount. Your OAS payment depends on how long you’ve lived in Canada as an adult, not on how much you’ve worked or paid into the system. This is fundamentally different from the Canada Pension Plan (CPP), which is based on your contributions.

The 40-Year Residency Rule

To qualify for the full OAS pension, you need 40 years of Canadian residency after age 18. If you have less than 40 years, you’ll receive a partial pension calculated at 1/40th of the full amount for each complete year of residency. For example, if you have 30 years of Canadian residency, you’d receive 30/40ths (75%) of the maximum — roughly $563.98 per month at current rates.

This matters enormously for immigrants who arrived in Canada later in life. If you moved to Canada at age 40, you’d have 25 years of residency by age 65 — qualifying you for about 62.5% of the full OAS pension.

The Minimum Qualification

You need at least 10 years of Canadian residency after age 18 to qualify for OAS if you’re living in Canada when you apply. If you’re living outside Canada, you need at least 20 years of residency. No residency minimum met? No OAS for you — regardless of how much you’ve contributed to the Canadian economy through taxes.

What Is the OAS Clawback Threshold in 2026?

The OAS clawback — officially called the “OAS Recovery Tax” — is the single biggest concern for higher-income retirees. Here’s where most guides create confusion, so let’s be precise: there are two different thresholds active right now.

For payments you’re receiving right now (July 2026 to June 2027): The threshold is based on your 2025 net income and is $93,454. Your OAS is fully clawed back once your 2025 net income reaches approximately $152,062 (ages 65–74).

For income you’re earning during 2026 (which determines your July 2027 to June 2028 payments): The threshold is $95,323. This is the number to plan around if you’re managing your current-year income to protect future OAS.

Here’s how the math works either way: for every dollar of net income above the applicable threshold, you lose 15 cents of OAS.

What Counts as “Net Income” for the Clawback?

The CRA calculates your net income using line 23600 of your tax return. This includes:

• Employment income
• Pension income (including CPP)
• RRSP/RRIF withdrawals
• Rental income
• Investment income (dividends, interest, capital gains)
• Self-employment income

Notably, TFSA withdrawals do NOT count toward the clawback calculation. This makes the TFSA an incredibly powerful tool for retirees trying to avoid the OAS clawback. If you haven’t been maximizing your TFSA contributions, you may want to read about the TFSA overcontribution penalty to make sure you’re contributing correctly.

A Real-World Clawback Example

Consider a Canadian retiree planning their 2026 income (which will determine their July 2027–June 2028 OAS payments):

• CPP: $1,200/month ($14,400/year)
• Company pension: $3,500/month ($42,000/year)
• RRIF minimum withdrawal: $35,000/year
• Investment income: $8,000/year

Total net income: $99,400. Against the 2026-income threshold of $95,323, that’s $4,077 over the line. The OAS recovery would be $4,077 × 15% = $611.55 per year clawed back — about $51 per month.

It might seem minor, but over a 25-year retirement, that’s over $15,000 lost to clawbacks that could have been avoided with better planning.

OAS at 65 vs. Deferring to 70: Which Strategy Wins?

One of the most consequential decisions you’ll make about OAS is when to start receiving it. You can begin at 65 or defer up to age 70. For each month you delay, your OAS increases by 0.6% — that’s 7.2% per year, or 36% total if you defer the full five years.

Let’s compare both strategies using current, verified 2026 numbers:

The break-even point lands around age 84 — meaningfully later than the 82–83 figure often cited elsewhere. If you live beyond that, deferral wins. If you don’t, starting at 65 would have been better. Of course, none of us know exactly how long we’ll live, which makes this decision particularly challenging.

When Deferral Makes Sense

Deferring OAS to 70 is generally smart if:

• You’re in good health with longevity in your family
• You have other income sources to cover ages 65–70 (pension, RRSP, TFSA)
• Your current income would trigger the OAS clawback anyway
• You want the security of higher guaranteed income later in life

For a deeper analysis of whether deferral is right for your specific situation, check out our detailed guide on OAS deferral to 70.

When Starting at 65 Makes Sense

Taking OAS at 65 is often the better choice if:

• You have health concerns or family history of shorter lifespans
• You need the income now and have no other sources
• You want to invest the payments and potentially earn returns
• You’re below the clawback threshold and will remain so

How to Maximize Your OAS Payments in 2026

Now that you understand OAS 2026 how much you can receive and when the clawback kicks in, let’s look at concrete strategies to keep more of your benefits.

Step 1: Estimate Your Retirement Income Accurately

Before you turn 65, create a detailed projection of your expected income from all sources. Use CRA My Account to check your CPP estimate, review your pension statements, and calculate expected RRIF withdrawals. If your projected income is near the applicable threshold ($93,454 for current payments, $95,323 for 2026-income planning), you have planning opportunities.

Step 2: Prioritize TFSA Over RRSP in Late Career

If you’re within 10 years of retirement and concerned about clawbacks, consider shifting new contributions from your RRSP to your TFSA. Why? RRSP withdrawals count as income and can trigger clawbacks. TFSA withdrawals don’t. The 2026 TFSA limit is $7,000, and if you’ve been contributing since 2009, your cumulative room could be approximately $109,000.

For high-income earners, this might mean strategically drawing down RRSPs between ages 60–70 (before mandatory RRIF conversions at 71) to minimize future clawback exposure.

Step 3: Consider Income Splitting with Your Spouse

If you’re married or common-law, pension income splitting can help both partners stay below the clawback threshold. You can split up to 50% of eligible pension income — including RRIF withdrawals and company pension payments — with your spouse. This can effectively double the applicable threshold for a couple (roughly $186,908 combined using the current $93,454 figure).

Step 4: Time Large RRSP/RRIF Withdrawals Strategically

If you need a large sum from your RRSP — say, for a home renovation or major purchase — consider the OAS implications. Withdrawing $50,000 in a single year could push you well over the clawback threshold, while spreading it over two years might keep you below. Plan these withdrawals during years when your other income is lowest.

Step 5: Delay OAS if You’re Currently Over the Threshold

Here’s a scenario many Canadians miss: If you’re still working at 65 with income well above the clawback threshold, there’s no point taking OAS just to have it clawed back. Defer until you retire or your income drops. You’ll avoid the clawback AND get the 0.6% monthly increase.

Common OAS Mistakes That Cost Canadians Thousands

After years of writing about Canadian retirement benefits, certain mistakes appear again and again. Avoid these costly errors.

Mistake #1: Assuming OAS Is Automatic

Unlike CPP, OAS is not fully automatic. While Service Canada does send out automatic enrollment letters to some Canadians at 64, not everyone receives one. If you haven’t received your letter six months before turning 65, apply proactively through My Service Canada Account. Late applications mean lost payments — Service Canada only backdates up to 11 months.

Mistake #2: Forgetting About the Guaranteed Income Supplement

If you’re a low-income senior, you may qualify for the Guaranteed Income Supplement (GIS) in addition to OAS. For 2026, a single senior with no other income could receive up to approximately $1,123.17/month in GIS alone, on top of their $751.97 OAS payment — a combined total of roughly $1,875/month. That’s over $22,500 annually, and it’s completely tax-free. Many eligible Canadians don’t apply because they don’t know it exists.

Mistake #3: Ignoring the 10% Boost at 75

Since July 2022, OAS recipients automatically receive a 10% increase when they turn 75. This brings the maximum payment to $827.17 per month at current rates. Some retirees factor only the age 65 amount into their retirement projections, understating their actual lifetime OAS benefits.

Mistake #4: Selling Investments at the Wrong Time

Capital gains count as income for clawback purposes. Selling a rental property or a large non-registered investment portfolio can create a one-year income spike that triggers massive clawbacks. Consider the OAS implications before any major asset sale, and explore strategies like spreading sales over multiple tax years.

Mistake #5: Not Coordinating OAS with CPP

OAS and CPP are separate programs with different optimal claiming ages. Just because you’re deferring CPP doesn’t mean you should defer OAS (or vice versa). Each decision should be evaluated independently based on your health, income, and financial needs. The maximum CPP at age 65 is $1,507.65 monthly — coordinate both benefits for maximum retirement income.

Key Takeaways

• The maximum OAS payment for ages 65–74 is $751.97/month ($9,023.64/year), increasing to $827.17/month at age 75
• There are two active clawback thresholds right now: $93,454 based on 2025 income (applies to your current payments through June 2027), and $95,323 based on 2026 income (applies to payments starting July 2027) — every dollar over the applicable threshold reduces OAS by 15 cents
• Deferring OAS from 65 to 70 increases your payment by 36%, but the verified break-even age is approximately 84, not the commonly cited 82–83
• TFSA withdrawals don’t count toward the clawback calculation, making TFSAs invaluable for retirement income planning
• Low-income seniors may qualify for GIS of up to approximately $1,123.17/month on its own — combined with OAS, that’s roughly $1,875/month for a single senior with no other income
• Apply for OAS at least six months before turning 65 if you haven’t received an automatic enrollment letter

Frequently Asked Questions

How much is OAS in 2026?

The maximum OAS payment as of the July 2026 quarterly adjustment is $751.97 per month for Canadians aged 65 to 74, which equals $9,023.64 annually. If you’re 75 or older, you receive a 10% increase, bringing the maximum to $827.17 monthly. Your actual payment may be less if you have fewer than 40 years of Canadian residency after age 18.

What is the OAS clawback threshold in 2026?

There are two thresholds to know. For OAS payments currently being made (July 2026 to June 2027), the threshold is $93,454, based on your 2025 net income. For income you’re earning right now in 2026 — which will determine your July 2027 to June 2028 payments — the threshold is $95,323. If your income exceeds the applicable threshold, you’ll lose 15 cents of OAS for every dollar over the line. TFSA withdrawals don’t count toward either calculation.

Should I delay OAS past 65?

It depends on your health, income needs, and other income sources. Delaying increases your payment by 0.6% per month (7.2% per year), but you’ll miss out on payments during the deferral period. If you’re in good health, have other income to live on, or would face clawbacks anyway, deferring can make sense. The verified break-even point is around age 84.

How much more do I get if I defer OAS to 70?

Deferring OAS from 65 to 70 increases your payment by 36% permanently. Using current rates, this means your maximum monthly payment would rise from $751.97 to $1,022.68 — an extra $270.71 per month for life, or an additional $3,248.52 per year compared to starting at 65.

Does my income affect my OAS payment?

Yes, through the OAS clawback (Recovery Tax). If your net income exceeds the applicable threshold ($93,454 based on 2025 income for current payments, or $95,323 based on 2026 income for future payments), your OAS payment is reduced by 15% of the excess amount. However, your income does not affect your eligibility for OAS or the base amount you qualify for — only whether some or all of it gets clawed back. TFSA withdrawals are excluded from this calculation.

Can I get both CPP and OAS at the same time?

Yes, absolutely. CPP and OAS are completely separate programs with different eligibility rules. CPP is based on your work contributions, while OAS is based on Canadian residency. Most retirees receive both simultaneously. At maximum benefits, CPP ($1,507.65) plus OAS ($751.97) totals approximately $2,259.62 monthly.

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Understanding OAS 2026 how much you’ll receive — and how to maximize it — can mean tens of thousands of extra dollars over your retirement. The key decisions are when to start collecting and how to manage your income to avoid unnecessary clawbacks, keeping in mind which of the two active thresholds applies to your situation. Whether you’re still years away from 65 or already making your claiming decision, taking time to plan now pays dividends for decades. For more retirement income strategies and Canadian financial guidance, explore our other articles at Getwealthy.