Old Age Security (OAS) is a monthly pension provided by the Government of Canada to eligible individuals aged 65 and older. While many recipients are automatically enrolled by Service Canada, some individuals may need to apply manually if the necessary information is not available.
Individuals can continue working while receiving OAS, but they may have to repay a portion of their pension if their income exceeds the income recovery threshold.
Working While Receiving OAS
| Feature | Details |
|---|---|
| Name | Old Age Security (OAS) |
| Administered by | Government of Canada |
| Country | Canada |
| Eligible Age | 65 or older |
| Payment Amount (Oct – Dec 2025) | $707.68 (Aged 65 – 74) and $778.45 (Aged 75 or more) |
| Minimum Income Recovery Threshold (2022 Tax Year) | $81,761 |
| Maximum Income Recovery Threshold (2022 Tax Year) | $134,626 (Aged 65 – 74) and $137,331 (Aged 75 or more) |
| Official Website | Canada.ca |
Receiving OAS While Working
Yes, individuals can continue working after reaching the qualifying age while receiving OAS. However, they should be mindful of their income, as exceeding the minimum income recovery threshold will trigger the OAS Recovery Tax.
Impact of Exceeding the Threshold
- If the total net income surpasses the minimum threshold, a recovery tax will be deducted from the OAS pension.
- The higher the income, the greater the repayment amount.
- Individuals should estimate their future income to determine if they will exceed the set threshold before deciding to work while receiving OAS.
To learn more about OAS Recovery Tax, income limits, and payment adjustments, individuals should refer to the Canadian Government’s official website.
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Extra Benefits for Working While Receiving OAS
Is There Any Financial Advantage?
There is no specific financial benefit to continuing work while receiving OAS apart from earning additional income. However, individuals who delay receiving their OAS pension after 65 may receive a higher pension amount when they do start collecting it.
Delayed OAS Pension
- Individuals can delay OAS payments up to 5 years (until age 70) to receive a higher amount.
- Delaying beyond age 70 does not provide additional benefits.
- Delaying past 70 could result in missing out on Guaranteed Income Supplement (GIS) eligibility.
OAS Recovery Tax
The OAS Recovery Tax applies when an individual’s net world income surpasses the minimum threshold in a given tax year. This tax amount varies annually.
Income Thresholds for OAS Recovery Tax
| Tax Year | Recovery Tax Period | Minimum Threshold | Maximum Threshold (Age 65 – 74) | Maximum Threshold (Age 75 or more) |
|---|---|---|---|---|
| 2022 | July 2025 – June 2025 | $81,761 | $134,626 | $137,331 |
| 2024 | July 2025 – June 2025 | $86,912 | $142,609 | $148,179 |
How the OAS Recovery Tax Is Calculated
The repayment amount is based on the difference between net world income and the set threshold. Individuals exceeding the threshold must pay 15% of the difference.
Example Calculation
- Suppose an individual earns $96,000 in 2022 while receiving OAS.
- The minimum income threshold for 2022 is $81,761.
- The excess income is:
$96,000 – $81,761 = $14,239 - 15% of $14,239 is $2,136, which must be repaid during the July 2025 – June 2025 recovery tax period.
FAQs
1. Do I have to apply for OAS, or am I automatically enrolled?
Most individuals are automatically enrolled by Service Canada. However, if the government does not have enough information, a manual application is required.
2. Can I receive OAS if I live outside Canada?
Yes, individuals who have lived in Canada for at least 20 years after turning 18 can receive OAS while residing abroad.
3. Will my OAS payment increase if I delay receiving it?
Yes, if you delay your OAS pension (up to age 70), you will receive a higher monthly payment. However, delaying beyond 70 provides no additional benefit.
4. What happens if my income exceeds the OAS recovery threshold?
If your net income surpasses the minimum recovery threshold, you will need to repay 15% of the excess amount as an OAS Recovery Tax.
5. Can I still qualify for GIS if I delay my OAS?
No, if you delay your OAS pension beyond age 70, you may lose eligibility for the Guaranteed Income Supplement (GIS).
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