As April 2025 draws closer, many Canadian seniors are eagerly awaiting the $1,946 Old Age Security (OAS) payments that may be delivered to eligible recipients.
Whether you’re approaching retirement or are already a recipient of OAS, this comprehensive guide will help you understand your eligibility, the amount you could receive, and the steps to take to ensure you get the most from this benefit.
Here, we’ll break down the eligibility rules, payment details, income thresholds, and other essential information in a clear and simple manner. Additionally, this guide will provide insights that may be useful for financial planners, advisors, and policy analysts.
Key Information on $1,946 OAS Payments for April 2025
For many seniors planning their retirement income, understanding the $1,946 OAS payments scheduled for April 2025 is crucial.
While not everyone will qualify for this full amount, seniors who are eligible for both OAS and GIS (especially those aged 75 and over) stand to benefit significantly.
By checking your eligibility, applying early, and managing your taxable income, you can maximize your benefits and enjoy a more financially secure retirement.
OAS Payment Breakdown
| Aspect | Details |
|---|---|
| Maximum OAS Pension (75+) | $800.44/month (Jan–Mar 2025) |
| Maximum GIS for Singles | $1,086.88/month (Jan–Mar 2025) |
| Combined OAS + GIS Monthly | Up to $1,887.32 (Age 75+); Up to $1,814.55 (Age 65–74) |
| Eligibility | 65+ years, Canadian citizen/legal resident, residency-based |
| Income Threshold (GIS Single) | Less than $22,056 annually |
| Quarterly Adjustments | OAS adjusted every 3 months to reflect inflation (CPI) |
| OAS Recovery Tax Starts | Income above $90,997/year |
| Official Site | Government of Canada – OAS |
What Is the Old Age Security (OAS) Pension?
The Old Age Security (OAS) is one of the central components of Canada’s retirement income system. It is a government-funded monthly benefit available to most Canadians aged 65 and older, regardless of their work history.
Unlike the Canada Pension Plan (CPP), which is based on employment contributions, OAS is funded through general tax revenues and eligibility depends on residency rather than work history.
Not everyone will receive OAS automatically, even though many seniors are automatically enrolled. Some individuals will need to apply to ensure they receive their benefits.
Who Is Eligible for OAS?
To be eligible for OAS, individuals must meet the following three conditions:
- Age: You must be 65 years old or older.
- Legal Status: You must be a Canadian citizen or legal resident at the time of your application.
- Residency:
- If you live in Canada: You must have resided in Canada for at least 10 years after turning 18.
- If you live outside Canada: You must have lived in Canada for at least 20 years after turning 18.
It’s highly recommended to apply six months before your 65th birthday to avoid any delays.
How Much Can You Receive From OAS?
The OAS payment amount is adjusted every quarter based on the Consumer Price Index (CPI) to account for inflation.
OAS Payment Amounts for January – March 2025:
- Ages 65 to 74: Up to $727.67 per month
- Ages 75 and over: Up to $800.44 per month
The increase for those 75 and over was introduced to offer more support for seniors facing higher healthcare and living expenses.
The Guaranteed Income Supplement (GIS): Financial Support for Low-Income Seniors
The Guaranteed Income Supplement (GIS) is a non-taxable monthly benefit designed for low-income seniors who also receive OAS. The amount you can receive from GIS depends on your income and marital status. You must reapply for GIS every year, and you can do so when filing your taxes.
GIS Payment Amounts (Jan–Mar 2025):
- Single, Widowed, or Divorced: Up to $1,086.88/month for annual income below $22,056
- Married/Common-Law Partners:
- Both receiving OAS: Combined income below $29,136
- One receiving OAS: Combined income below $43,104
- One not receiving OAS: Combined income below $52,848
When combined with OAS, low-income seniors aged 75+ can receive monthly benefits totaling up to $1,946.
What Is the OAS Clawback (Recovery Tax)?
The OAS recovery tax, also known as the clawback, reduces OAS payments if your net income exceeds $90,997 in 2024.
For every dollar you earn over this threshold, 15 cents is deducted from your OAS payments. The recovery tax is fully applied when your income reaches around $148,000.
This affects only higher-income seniors and is calculated during your annual tax return.
When Are OAS Payments Made?
OAS payments are typically disbursed monthly, with the last week of each month being the usual payout period. For example, the April 2024 payment is expected around April 26, 2024.
To receive your payments on time:
- Enroll in direct deposit
- Update your banking details regularly
- File your taxes on time each year, even if you have no income
How to Apply for $1,946 OAS Payments in April 2025
Step-by-Step Application Process
- Check Automatic Enrollment: If you’re automatically enrolled, you may receive a notification before your 65th birthday. If not, you must apply manually.
- Apply Online: Log into your My Service Canada Account (MSCA) and apply online.
- Apply by Mail: Download and complete the OAS application form and mail it to the appropriate office.
- Submit Supporting Documents: You may need to provide proof of legal status and residency, particularly if you’re applying from outside Canada.
Tax Considerations
- OAS is taxable income and will be included in your T4A(OAS) slip.
- You can opt for voluntary tax deductions to avoid a large tax bill at the end of the year.
- GIS is non-taxable, so it won’t be reported as income.
Planning Ahead: How to Maximize Your Retirement Benefits
To make the most of your OAS benefits, here are some key strategies:
- Delay OAS: If you delay receiving OAS payments until you turn 70, you can increase your benefits by 0.6% per month, or 7.2% per year, for a potential 36% increase.
- Use RRSPs: By reducing your taxable income, you can help ensure you stay below the GIS eligibility thresholds.
- Apply for Allowance: If you’re aged 60–64 and your spouse receives GIS, you may qualify for additional support, such as the Allowance or Allowance for the Survivor.
As we approach April 2025, seniors across Canada should prepare to receive the $1,946 OAS payments, depending on their eligibility.
By understanding the OAS and GIS systems, seniors can make informed decisions to maximize their retirement benefits.
Whether you’re applying for the first time or adjusting your income to stay eligible, taking proactive steps can ensure a more financially secure future.
FAQs
How do I apply for OAS?
You can apply online through the My Service Canada Account (MSCA) or by downloading the application form and applying by mail. Be sure to check if you’re automatically enrolled.
What is the OAS clawback?
The OAS recovery tax (clawback) reduces OAS payments if your income exceeds $90,997 per year. For every dollar above this threshold, 15 cents is deducted from your OAS.
How much is the OAS payment for seniors over 75?
For those aged 75+, the maximum OAS payment is $800.44 per month (as of Jan–Mar 2025).
Is the GIS taxable?
No, GIS is non-taxable and does not need to be reported as income.