If you’re a Canadian senior receiving the Old Age Security (OAS) pension, there are some important updates for 2025 that you need to know. While OAS is a reliable monthly payment for many retirees, a few missteps can cause delays, clawbacks, or even a full stop in your benefits.
Let’s break down three major red flags that could affect your OAS eligibility and what you can do to avoid them.
Income
One of the biggest triggers for losing your OAS—partially or completely—is having too much income. In 2025, if your annual net income goes over $90,997, the Canada Revenue Agency (CRA) will begin applying what’s called the OAS clawback.
This clawback reduces your OAS by 15 cents for every dollar you earn above that threshold. If your income reaches around $148,000 or more, you might lose your OAS entirely. That’s a big deal, especially for seniors counting on that money.
So how can you stay below the line? One trick is income splitting with your spouse, which lowers your reported income. Another helpful option is keeping savings in a Tax-Free Savings Account (TFSA) instead of an RRSP or RRIF, since TFSA withdrawals don’t count as taxable income.
| Net Income | OAS Reduction | OAS Eligibility |
|---|---|---|
| $90,000 | $0 | Full OAS |
| $100,000 | $1,351 | Partial OAS |
| $120,000 | $4,351 | Reduced OAS |
| $148,000+ | Full Clawback | No OAS |
Filing
Believe it or not, not filing your taxes can cause the CRA to withhold or stop your OAS payments. Even if you owe no taxes, the government uses your annual tax return to determine your eligibility for OAS and other benefits like the Guaranteed Income Supplement (GIS).
The magic date? April 30 of every year. Miss that, and you’re looking at delays—or worse, a full pause on your payments.
Want the fastest way to file? Use the CRA’s Auto-fill My Return service or file online using certified software. It’s quick, it’s easy, and it keeps your payments flowing.
Travel
Planning a long trip or moving abroad? You’ll want to double-check the rules. If you’re out of Canada for too long—especially if you haven’t lived in the country for 20 years since age 18—you could lose your OAS eligibility altogether.
Short vacations? Totally fine. But if you’re relocating for months or years, things get trickier. You may still qualify under international agreements, but Service Canada must be notified of your absence.
Always keep a detailed travel log and update your contact information if you’re going overseas. It helps avoid any headaches down the road.
While OAS is a valuable benefit for Canadian seniors, it’s not automatic or guaranteed forever. Whether it’s your income, tax filings, or travel status, even small oversights can lead to big problems. Stay informed, follow the rules, and don’t let simple mistakes cost you your well-deserved retirement income.
FAQs
What is the 2025 OAS clawback limit?
The OAS clawback starts at $90,997 for 2025.
Can I lose OAS for not filing taxes?
Yes, missing tax returns can pause OAS payments.
How long can I stay outside Canada?
You must have lived in Canada for 20 years post-age 18.
Can TFSA income trigger clawbacks?
No, TFSA withdrawals are not counted as taxable income.
Is income splitting good for OAS?
Yes, it can lower your net income to avoid clawbacks.
