OAS Is Now $1,576/Month; Here’s What That Means for Your Retirement Timeline

OAS Is Now $1,576/Month – If you’ve been hearing that Old Age Security (OAS) is now $1,576/month, you might be wondering what that means for your retirement timeline and financial planning. While that number is making headlines, it’s essential to break down what’s actually official, what it implies, and how you can maximize your OAS benefits.

Currently, the maximum OAS payment for Canadians aged 75 and above is $800.44/month (as of Q1 2025). The figure of $1,576 likely includes additional benefits like the Guaranteed Income Supplement (GIS). Let’s walk through everything you need to know in a simple, clear, and expert-backed way.

OAS Is Now $1,576/Month

While the idea of getting $1,576/month from OAS may sound amazing, it’s crucial to understand the breakdown: OAS + GIS equals that total, and not everyone qualifies for the full GIS. That said, with smart planning—like deferring OAS, managing taxable income, and coordinating with CPP—you can maximize your retirement income.

What Is OAS and Who Gets It?

Old Age Security (OAS) is a monthly pension available to most Canadians over age 65. It’s not based on work history like CPP but rather your residency status in Canada.

To qualify, you must:

• Be 65 or older
• Be a Canadian citizen or legal resident
• Have lived in Canada for at least 10 years since turning 18

If you meet all criteria, you can receive OAS payments every month. But remember, the actual amount depends on age, deferral decisions, and income level.

How the $1,576/month Figure Is Calculated?

You might have seen reports or posts saying, “OAS is now $1,576 per month.” That number includes two parts:

1. OAS Pension (up to $800.44 for those 75+)
2. Guaranteed Income Supplement (GIS), which provides up to $916.38/month for low-income seniors

Combined, that brings the total to $1,716.82/month, although some reports average it around $1,576 based on varying GIS amounts.

Important: You only receive GIS if your income is below a certain threshold. For single seniors, that’s approximately $21,624/year (2024).

Deferring OAS: A Smart Strategy for Many

Many Canadians don’t realize that you can delay OAS payments up to age 70. For every month you delay past 65, your benefit increases by 0.6%.

Here’s how that works:

• Delay for 12 months = 7.2% more per month
• Delay for 60 months (5 years) = 36% more per month

If you don’t urgently need the money, deferring OAS can add hundreds more to your monthly income during retirement.

Watch Out for the OAS Clawback

The OAS Recovery Tax, also called the “clawback,” reduces your OAS if your income is too high.

For 2024:

• Clawback begins at $86,912/year in net income
• OAS is fully clawed back at $142,609/year (age 65-74)
• Slightly higher for those 75+

Tip: Use RRSPs or TFSAs strategically to lower taxable income and keep your full OAS.

How OAS Fits Into Your Retirement Timeline?

OAS is just one part of your retirement puzzle. Here’s how it typically fits:

Ages 60-64: Prepare Your Income Plan

• Explore CPP early retirement (starts at 60)
• Estimate OAS and GIS eligibility
• Consider RRSP withdrawals before OAS begins to reduce future taxes

Age 65: Default OAS Start Age

• Apply for OAS and GIS
• Start integrating it with CPP, private pensions, and savings

Ages 66-70: Consider Deferral for Boost

• If you’re working or have other income, delay OAS for a higher monthly payout

Age 75+: Higher OAS + Stable GIS

• Additional 10% boost applies to OAS for those over 75

Real Example: Linda’s Retirement Plan

Linda is 66 and still working part-time. She defers OAS for 4 years:

• At 70, she qualifies for OAS = $727.67 + 36% = $990.63/month
• She also qualifies for partial GIS = $300/month due to low income
• Combined = $1,290.63/month, indexed for inflation

If Linda had started at 65, she would have received $727.67/month, but by waiting, she boosts her lifetime benefit.

Tips to Maximize OAS and GIS Benefits

1. Consider deferring OAS to age 70 for maximum payout.
2. Keep your taxable income low through strategic RRSP withdrawals or TFSA usage.
3. Claim all eligible tax credits such as the Age Amount or Pension Income Amount.
4. Explore spousal benefits like Allowance and Allowance for the Survivor.
5. Apply early to avoid missing out due to application delays.

Other Support for Seniors

Besides OAS and GIS, Canadian seniors may qualify for:

• CPP (Canada Pension Plan) – Based on work history
• Allowance – For low-income seniors aged 60 to 64 with a spouse receiving GIS
• Allowance for the Survivor – For low-income widows aged 60 to 64
• Provincial supplements – Extra payments from some provinces

Always check your full eligibility using the Canadian Retirement Income Calculator

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FAQs

1. Is OAS really $1,576/month now?

Not on its own. OAS maxes out at $800.44/month (75+). The $1,576 figure includes GIS for low-income seniors.

2. How do I apply for OAS?

You can apply online through My Service Canada Account.

3. Can I get both CPP and OAS?

Yes. CPP is based on your work contributions, while OAS is based on residency.

4. Will OAS increase with inflation?

Yes. OAS is adjusted quarterly based on the Consumer Price Index (CPI).

5. What happens if I leave Canada?

You can still receive OAS abroad if you’ve lived in Canada for at least 20 years after age 18.

6. Can I work while receiving OAS?

Yes. But if your income goes above $86,912/year, your OAS may be reduced due to the clawback.

7. What is the deadline to apply for OAS?

You should apply 6 months before your 65th birthday, or earlier if planning to defer.