Old Age Security (OAS) is a monthly pension from the Government of Canada available to most seniors aged 65 and older. Unlike the Canada Pension Plan (CPP), eligibility is based on residency, not work history.
Eligibility
To qualify, you must be 65 or older and have lived in Canada for at least 10 years after age 18. Full benefits usually require 40 years of residency. Canadian citizens and legal residents can receive OAS even if living abroad, provided residency conditions are met.
How It Works
OAS is funded from general government revenues, not individual contributions. Payments are taxable and adjusted quarterly for inflation. High-income seniors may have part of their OAS clawed back through the OAS recovery tax.
Final Thoughts
OAS provides a foundation of retirement income for Canadian seniors. Combined with CPP, private savings, and other benefits, it helps ensure financial security in retirement.