Old Age Security, usually called OAS, is a monthly payment from the Government of Canada for many seniors aged 65 and older.
It is one of the main government retirement benefits in Canada, alongside the Canada Pension Plan, or CPP.
But OAS is different from CPP in an important way.
CPP is based on how much you paid into the Canada Pension Plan while working.
OAS is based more on your age, residency, legal status, and income. You may be able to receive OAS even if you have never worked in Canada.
That makes OAS an important benefit to understand, especially if you are planning for retirement or helping an older family member make sense of their income.
What Does OAS Stand For?
OAS stands for Old Age Security.
It is a monthly taxable benefit for eligible seniors in Canada.
The idea is simple: OAS helps provide some basic retirement income once you reach age 65.
It is not meant to fully fund retirement by itself, but it can form part of a bigger retirement income picture.
That bigger picture might include:
- CPP
- workplace pensions
- RRSPs
- TFSAs
- personal savings
- investment income
- part-time work
- home equity
For many people, OAS is one piece of the puzzle.
Who Can Get OAS?
In general, OAS is for people aged 65 or older who meet Canadian legal status and residency requirements.
Your exact eligibility can depend on things like:
- your age
- your legal status in Canada
- how long you have lived in Canada after age 18
- your income
One of the most useful things to know is that OAS is not based on your work history in the same way CPP is.
You can receive OAS even if you are still working, and you may be able to receive it even if you have never worked.
That is a big difference from CPP.
Is OAS Taxable?
Yes. OAS is taxable income.
That means it can affect your tax return.
If your income is high enough, you may also have to repay part or all of your OAS through the OAS recovery tax.
This does not affect everyone.
For lower and middle-income retirees, OAS may simply be a monthly taxable benefit. For higher-income retirees, some of it may be reduced or repaid.
Can You Delay OAS?
Yes, some people can choose to delay OAS.
You cannot start OAS before age 65, but you may be able to delay it and receive a higher monthly amount later.
This can be useful for some people, but it depends on your situation.
Delaying OAS might make sense if you are still working, have other income, or expect to live a long retirement.
Taking it at 65 might make more sense if you need the income sooner.
There is no perfect answer for everyone.
What Is GIS?
GIS stands for Guaranteed Income Supplement.
It is a separate benefit for low-income seniors who receive OAS. GIS is monthly and tax-free.
This matters because some people hear “OAS” and think that is the whole system.
But for lower-income seniors, GIS can be very important.
A person may receive OAS and also qualify for GIS if their income is low enough.
Why OAS Matters
OAS matters because it can provide reliable monthly income in retirement.
It may not be huge by itself, but predictable income can still be valuable.
For example, OAS could help cover:
- groceries
- utilities
- phone bills
- medication costs
- insurance
- property taxes
- basic monthly spending
When combined with CPP and personal savings, OAS can help create a more stable retirement income base.
Fresh Tip
Do not confuse OAS with CPP.
CPP is based on contributions from working.
OAS is based mainly on age, residency, status, and income.
Both can matter in retirement, but they work differently. Understanding the difference can help you build a clearer retirement plan.
Learn More
If you want to keep learning, you may also find these helpful:
- What Is CPP? — learn how the Canada Pension Plan works.
- What Is an RRSP? — understand another key retirement savings tool.
- What Is a T4? — learn about one of the common tax slips in Canada.
Bottom Line
OAS stands for Old Age Security.
It is a monthly taxable government benefit for eligible seniors aged 65 and older in Canada.
Unlike CPP, OAS is not directly based on your work contributions. You may be able to receive it even if you have never worked in Canada, as long as you meet the rules.
OAS will probably not fund retirement by itself, but it can be an important part of the retirement income mix.
For many Canadians, retirement income is not one big thing.
It is a combination of smaller pieces working together.
OAS is one of those pieces.
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