CPP, OAS, and GIS: Maximize your public retirement benefits with our CPP, OAS, and GIS Guide.
For full benefit timing, clawback planning, and retirement income sequencing, see the CPP and OAS hub.
Old Age Security (OAS) pays a maximum of $727.67 per month for Canadians aged 65–74 in 2026, rising to $800.44 per month at age 75. The Guaranteed Income Supplement (GIS) adds up to $1,065.47 per month tax-free for seniors with little or no other income. Unlike CPP, OAS is not based on contributions — it’s based on years of Canadian residency after age 18, and most Canadians who have lived here for 40+ years receive the full amount automatically.
OAS Payment Amounts (2026)
| Recipient | Maximum Monthly OAS |
|---|---|
| Age 65–74 | $727.67 |
| Age 75+ | $800.44 (10% increase) |
OAS is adjusted quarterly for inflation using the Consumer Price Index — payments increase (but never decrease) each January, April, July, and October. The 10% boost at age 75 was introduced in 2022 as a permanent increase, not a one-time benefit. If you deferred past 65, your higher deferred amount receives the same 10% uplift at 75.
OAS Eligibility
| Requirement | Living in Canada | Living Outside Canada |
|---|---|---|
| Minimum age | 65 | 65 |
| Minimum residency | 10 years after age 18 | 20 years after age 18 |
| Full pension (40 years) | 40 years residence after age 18 | 40 years residence after age 18 |
| Partial pension | 10-39 years (proportional) | 20-39 years (proportional) |
To qualify for any OAS you must have lived in Canada for at least 10 years after turning 18 (20 years if you live outside Canada at the time you apply). Each year of residency earns you 1/40th of the maximum pension, so 20 years of residency gives you exactly 50% of the maximum. Canadians who immigrated later in life or spent significant time abroad often receive partial OAS — the table below shows the exact amounts.
Partial OAS Examples
| Years in Canada (after 18) | OAS Amount (% of maximum) | Monthly Payment (age 65-74) |
|---|---|---|
| 10 years | 25% | $182 |
| 15 years | 37.5% | $273 |
| 20 years | 50% | $364 |
| 25 years | 62.5% | $455 |
| 30 years | 75% | $546 |
| 35 years | 87.5% | $637 |
| 40+ years | 100% | $728 |
For example, a Canadian who immigrated at age 40 and lived in Canada until age 75 (35 years of residency) would receive 87.5% of the maximum — about $637/month at age 65–74. Residency years do not need to be consecutive; they accumulate over your lifetime after age 18.
OAS Clawback (Recovery Tax)
If your individual net income exceeds a threshold, OAS is clawed back at 15%:
| Income Level (2026) | OAS Clawback | Monthly OAS Remaining (age 65-74) |
|---|---|---|
| Under $90,997 | $0 | $728 (full) |
| $95,000 | $600/year | $678 |
| $100,000 | $1,350/year | $615 |
| $110,000 | $2,850/year | $490 |
| $120,000 | $4,350/year | $365 |
| $130,000 | $5,850/year | $240 |
| $142,000 | $7,650/year | $90 |
| ~$148,000+ | Full clawback | $0 |
For every dollar of income above $90,997, you lose 15 cents of OAS. The clawback is calculated on your previous year’s net income and applied as a reduction to your OAS payments throughout the following July–June period — it is not withheld immediately. High-income retirees with investment income, large RRIF withdrawals, or capital gains from property sales should plan around this threshold carefully. One key planning tool: if you are married and one spouse has lower income, structuring income withdrawals to keep the higher earner below $90,997 can preserve their full OAS.
Deferring OAS
You can delay OAS from age 65 to age 70 for a higher payment:
| Start Age | Monthly Increase | Maximum Monthly (65-74 base) |
|---|---|---|
| 65 | 0% | $728 |
| 66 | +7.2% | $780 |
| 67 | +14.4% | $832 |
| 68 | +21.6% | $885 |
| 69 | +28.8% | $938 |
| 70 | +36% | $990 |
Deferring OAS is one of the most straightforward longevity bets in Canadian retirement planning. Each month you delay past age 65 adds 0.6% to your permanent OAS rate (7.2%/year). At 70, your OAS is 36% higher for life — and also 36% higher when the 10% age-75 uplift applies. The decision comes down to your health, your other income sources, and whether you need the money immediately.
Deferral Breakeven
| Comparison | Breakeven Age |
|---|---|
| Start at 65 vs 67 | ~79 |
| Start at 65 vs 70 | ~82 |
If you live past 82, deferring to 70 pays more total. If health or finances mean you need income sooner, start at 65.
Guaranteed Income Supplement (GIS)
GIS is a tax-free supplement for low-income OAS pensioners. It is one of the most valuable — and most underutilized — benefits in the Canadian retirement system. Many seniors who qualify don’t apply because they don’t know it exists or assume they earn too much. GIS eligibility is reassessed every year based on your previous year’s tax return, so a bad income year can actually trigger GIS eligibility even for people who were ineligible before.
Maximum GIS Amounts (2026)
| Situation | Maximum Monthly GIS |
|---|---|
| Single, divorced, or widowed | $1,065.47 |
| Spouse receives full OAS | $641.35 |
| Spouse does not receive OAS | $1,065.47 |
| Spouse receives Allowance | $641.35 |
GIS Income Thresholds
GIS is reduced based on income (excluding OAS):
| Annual Income (excl. OAS) | GIS Amount (Single) | OAS + GIS Combined Monthly |
|---|---|---|
| $0 | $1,065 | $1,793 |
| $5,000 | $815 | $1,543 |
| $10,000 | $565 | $1,293 |
| $15,000 | $315 | $1,043 |
| $21,624+ | $0 | $728 (OAS only) |
For couples, the combined income threshold is higher — a couple where both receive OAS can have up to $28,560 in combined non-OAS income before GIS is fully eliminated. The GIS reduction formula removes 50 cents of GIS for every dollar of non-OAS income, which creates an effective marginal tax rate of over 70% for low-income GIS recipients when provincial clawbacks and federal tax are combined with the GIS reduction. This is the core reason TFSA withdrawals are so valuable for this group.
GIS Income Exemptions
| Income Source | Treatment |
|---|---|
| OAS payments | Fully excluded |
| First $5,000 of employment income | Excluded |
| Next $10,000 of employment income | 50% excluded |
| CPP/QPP income | Included |
| RRSP/RRIF withdrawals | Included (counts as income) |
| TFSA withdrawals | Excluded (tax-free, doesn’t count) |
| GIS payments | Excluded |
| Investment income | Included |
⚡ TFSA withdrawals don’t affect GIS — this is a major planning advantage for low-income retirees.
Total Government Retirement Income
| Scenario | CPP/Month | OAS/Month | GIS/Month | Total/Month | Total/Year |
|---|---|---|---|---|---|
| Maximum CPP + full OAS (no GIS) | $1,433 | $728 | $0 | $2,161 | $25,932 |
| Average CPP + full OAS + partial GIS | $815 | $728 | $400 | $1,943 | $23,316 |
| Low CPP + full OAS + full GIS | $400 | $728 | $1,065 | $2,193 | $26,316 |
| No CPP + full OAS + full GIS | $0 | $728 | $1,065 | $1,793 | $21,516 |
The table above illustrates a counterintuitive result: a retiree with no CPP and no other income can receive more total monthly income than one with average CPP — because GIS fills the gap. A single senior with zero CPP but full OAS and GIS receives $1,793/month ($21,516/year), while a senior with average CPP of $815/month receives $1,943/month but pays income tax on the CPP portion, narrowing the real-dollar gap further.
The Allowance
The Allowance is for spouses/common-law partners of GIS recipients:
| Benefit | Amount | Eligibility |
|---|---|---|
| Allowance | Up to $1,354/month | Age 60-64, spouse receives OAS+GIS, low income |
| Allowance for the Survivor | Up to $1,614/month | Age 60-64, widowed, low income |
The Allowance stops at age 65 when you qualify for OAS and GIS yourself. If you are 60–64 and your spouse is 65+ and receiving OAS+GIS, apply for the Allowance through Service Canada — it is often missed by couples where one partner is younger. For widowed seniors aged 60–64, the Allowance for the Survivor (up to $1,614/month) is available regardless of whether your late spouse was receiving OAS.
Strategies to Maximize OAS + GIS
1. Prioritize TFSA Over RRSP If GIS-Eligible
| Strategy | Impact on GIS |
|---|---|
| Withdraw from RRSP/RRIF | Counts as income → reduces GIS |
| Withdraw from TFSA | Tax-free, NOT counted → preserves GIS |
For low-income retirees, every $1 from an RRSP reduces GIS by 50 cents on top of the income tax you pay on the withdrawal — an effective combined rate that can exceed 70%. By contrast, a TFSA withdrawal costs you nothing in GIS and nothing in tax. This asymmetry is the single most important retirement income sequencing insight for lower-income Canadian seniors. See the RRSP calculator to model how much RRSP income you’ll need to draw.
2. Deplete RRSP Before Age 65
| Action | Benefit |
|---|---|
| Convert RRSP to RRIF before 65 | Lower GIS-reportable income at 65 |
| Withdraw RRSP at lower tax rates (early retirement) | Pay less tax now, preserve GIS later |
| Move RRSP to TFSA (via withdrawal + re-contribution) | Future withdrawals won’t affect GIS |
Converting RRSP funds to TFSA before age 65 — by making withdrawals in early retirement years when your income is lower — reduces future RRIF mandatory withdrawals that would otherwise erode GIS. Every $10,000 withdrawn from an RRSP in a low-income year and re-contributed to a TFSA (if room allows) eliminates ~$5,000/year in future GIS clawback. This strategy requires multi-year planning starting in your early 60s.
3. Income Splitting
| Strategy | Detail |
|---|---|
| CPP sharing (both 60+) | Equalize CPP between spouses to reduce clawback |
| Pension income splitting | Split eligible pension income 50/50 |
| OAS deferral (spouse) | If one spouse has higher income, defer their OAS |
CPP sharing allows couples to equalize CPP income between spouses, which can prevent one spouse’s income from triggering OAS clawback while the other spouse’s income is low enough to still qualify for GIS. Pension income splitting (up to 50% of eligible pension income) works similarly. The goal is to keep both spouses below the relevant income thresholds rather than having one spouse well above and one well below.
4. Timing of Income
| Action | Impact |
|---|---|
| Defer large capital gains to pre-65 | Avoids OAS clawback and GIS reduction |
| Sell investments in low-income years | Minimizes tax and benefit clawbacks |
| Time RRIF withdrawals carefully | RRIF income counts against GIS |
Large capital gains — from selling a rental property, cottage, or investment portfolio — can spike your net income well above the OAS clawback threshold in a single year. Where possible, spreading capital gains over multiple years (through installment sales or gradual portfolio rebalancing) keeps annual income below $90,997 and avoids a clawback year. Retirees with significant unrealized gains should discuss timing with a tax professional before age 65.
Worked Example: TFSA vs. RRSP Withdrawal
Marie, age 65, Alberta — 40 years of Canadian residency:
| Income Source | RRSP/RRIF Strategy | TFSA Strategy |
|---|---|---|
| OAS | $727.67/month | $727.67/month |
| Annual non-OAS income | $10,000 RRIF withdrawal | $10,000 TFSA withdrawal |
| GIS reduction (50¢/dollar) | −$416.67/month | $0 |
| GIS received | $648.80/month | $1,065.47/month |
| Income tax on withdrawal | ~$1,500/year | $0 |
| Annual total income | $21,260 | $26,316 |
By drawing the same $10,000 from a TFSA instead of an RRSP/RRIF, Marie keeps an extra $5,056 per year in GIS — tax-free — and pays no tax on the withdrawal. Over a 20-year retirement, that strategy difference is worth over $100,000 in cumulative income.
Key Takeaways
- Maximum OAS is $728/month (age 65-74) or $800/month (75+) — based on residency, not contributions
- OAS is clawed back at 15% on income over ~$91,000 and fully eliminated at ~$148,000
- GIS provides up to $1,065/month tax-free for low-income seniors
- TFSA withdrawals don’t affect OAS or GIS — critical for retirement planning
- RRSP/RRIF withdrawals count as income and can reduce or eliminate GIS
- Deferring OAS to 70 increases it by 36% — breakeven around age 82
- Low-income retirees can receive ~$1,793/month from OAS + GIS with no other income
- Consider depleting RRSPs before 65 if GIS eligibility is likely
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