OAS Benefits Calculator

Understanding Old Age Security (OAS) in 2026

Old Age Security is a monthly pension paid to Canadians aged 65 and older. Unlike CPP, OAS is not tied to employment history — it is funded from general tax revenue and available to nearly all seniors who meet the residency requirement of at least 10 years in Canada after age 18. Full OAS requires 40 years of Canadian residency; fewer years results in a proportional (partial) pension. In 2026, the maximum monthly OAS payment is $743.05 for recipients aged 65–74, and $817.36 for those 75 and older, reflecting the permanent 10% enhancement introduced in 2022.

The OAS clawback — formally called the OAS Recovery Tax — reduces your pension if your net income exceeds the threshold. For 2026, the clawback begins at $95,323 of net income and recovers 15 cents of every dollar above that amount. OAS is fully eliminated once net income reaches approximately $154,708 (age 65–74) or $160,647 (age 75+). You can defer OAS by up to 60 months past age 65, increasing your pension by 0.6% per month (7.2% per year) of deferral, up to a maximum 36% increase at age 70.

OAS Key Figures (2026)

To minimize the OAS clawback, consider strategies such as splitting pension income with a spouse, drawing from your TFSA (which does not count as income), or timing RRSP/RRIF withdrawals to keep net income below the threshold. If you are still working past 65, deferring OAS can be advantageous because your higher employment income would trigger a larger clawback. OAS payments are indexed to inflation quarterly, ensuring purchasing power keeps pace with the Consumer Price Index.

When Should You Defer OAS?

The breakeven math is straightforward but the answer depends on three variables: your life expectancy, your current income, and whether you have other tax-advantaged savings (TFSA, non-registered) to bridge the gap. The 7.2% annual deferral bonus is risk-free, inflation-indexed, and effectively a guaranteed real return that no investment can match. Statistical breakeven for a healthy 65-year-old (who defers to 70) is around age 82–84 — meaning if you expect to live past that, you will receive more total OAS dollars by waiting. Canadians have an average remaining life expectancy at 65 of about 20 years (women) or 18 years (men), so most recipients benefit from at least partial deferral.

Defer if: (1) you are still working past 65 and would hit the OAS clawback at $95,323, (2) you have RRSP/RRIF or TFSA assets to draw from in the gap years, (3) your family history suggests long life expectancy, (4) you want to insure against longevity risk. Do not defer if: (1) you need the income now, (2) your income would qualify you for GIS (Guaranteed Income Supplement, which is lost if OAS is not taken), (3) you have a health condition that reduces life expectancy, or (4) you have no other retirement savings to live on between 65 and 70.

What Changed for 2026

• The clawback threshold is $95,323. For the 2026 income year, the OAS recovery tax starts once net income crosses that line and takes back 15 cents of every dollar above it.
• Full clawback lands near $154,708 (ages 65–74) and $160,647 (75+). The two points differ because the 75+ pension is 10% larger, so it takes more income to erase it completely.
• Maximum monthly OAS used by this calculator: $743.05 (65–74) and $817.36 (75+). OAS is reviewed quarterly against the Consumer Price Index, so the in-year amount can move with inflation.
• Deferral rules are unchanged: +0.6% per month past 65, capping at +36% at age 70. On the 2026 maximum, a start at 70 pays $1,010.55 per month ($743.05 × 1.36).
• The 75+ enhancement continues: OAS increases by 10% automatically when you turn 75 ($743.05 → $817.36 at the maximum) — no application needed.

Worked Example: The Clawback at $110,000 of Income

Here is exactly what this calculator does for a 65-year-old with 40 years of Canadian residency (full OAS) and $110,000 of net income in 2026 — a common situation for someone still working part-time or drawing heavily from a RRIF.

Amounts are rounded to the nearest cent; the annual figure is computed before rounding, which is why the table shows $6,715.05 rather than the $6,715.08 you would get from $559.59 × 12.

At $110,000 the recovery tax removes about a quarter of the pension: $6,715.05 of the $8,916.60 entitlement survives (75.3%). The planning takeaway is that between $95,323 and the full-clawback point, every additional dollar of net income costs 15 cents of OAS on top ofregular income tax — which is why retirees in this band often prioritize TFSA withdrawals (not counted as income) and time RRSP/RRIF withdrawals or capital gains to years before OAS starts.

Net OAS by Income Level (2026)

The table below applies the same arithmetic across the income range, assuming ages 65–74 and a full 40-year pension ($743.05 per month before clawback):

For recipients aged 75 and over, the higher $817.36 maximum means the pension survives to a higher income — full clawback lands near $160,647 instead of $154,708. A partial pension shrinks the base but not the 15% rate, so someone with 20 residency years ($371.53 per month) sees their OAS fully clawed back at a lower income than the figures above.