Permanent Increase in OAS Takes Effect in July

Seniors over the age of 74 will have been delighted by the raise they received in their Old Age Security Benefits in July of 2022. The specifics of the new permanent increase, its effect on the clawback of OAS and other new details follow:

OAS is paid to those who turn 65 in the month following that birthday, in most cases, automatically, unless the recipient has chosen to delay their OAS to age 70 in order to get a higher benefit later. When CRA does not have enough information, an application form may be required.

The new 10% increase in the benefits is automatically paid to those who are 75 years of age or older in June of 2022. For those turning 75 after July 1, the increase kicks in the month following the 75th birthday. The increase is subject to the income-tested clawback but will not affect the calculation of any Guaranteed Income Supplement (GIS) that the senior may be eligible for.

How much can be received? See the chart below. Note that those who have lived in Canada for less than 40 years after the age of 18 will receive a smaller amount.

Old Age Security Payments


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Year Total

2021: born after July 1947






2021: born before July 1947






2022: under age 75





2022: 75 or older





* Seniors born before July 1947 received a one-time $500 payment in July 2021.

OAS benefits, including the increase, are clawed back when individual net income levels reach certain thresholds, as explained below. OAS is clawed back at a rate of 15% as net income exceeds the base amount.



Phase out begins


OAS is completely clawed back







* The upper income level depends on the total OAS received for the year; this amount is estimated based on OAS of $673.70 for the fourth quarter.

** Assumes that the senior was age 75 before July 2022. Seniors who turn 75 later in 2022 have all their OAS clawed back at a lower income level.

Taxpayers who are over the age of 65 but missed filing for their OAS benefits can receive them retroactively, but only for a maximum of 11 months from the date the government receives an application form. Seniors who are receiving their OAS benefits and decide to defer must do so within six months of the pension starting (and they must repay any pension already received).

Bottom Line: For seniors approaching age 65, it’s important to fully understand the many options available in maximizing their Old Age Security. Take the time to talk to your tax and financial advisors about the benefit you will be eligible for at age 65 or by deferring up to 60 months to age 70 to earn 36% more. If you live 20 years after 65 to be age 85, the OAS is worth over $160,000 to you. By staying healthy and beating the odds to live 20 years from age 70 to age 90, you’ll receive close to $220,000 with the deferral option.

It’s not small change, it’s indexed, and therefore, it’s worth planning your net income to minimize the clawback and maximize the OAS.

Evelyn Jacks is President of Knowledge Bureau and bestselling author of 55 books on tax filing, planning and family wealth management. She tweets @evelynjacks.