OAS and GIS Overview
| Feature | OAS | GIS |
|---|---|---|
| Full name | Old Age Security | Guaranteed Income Supplement |
| Type | Universal pension | Income-tested supplement |
| Eligibility | 65+, lived in Canada 10+ years (after 18) | OAS recipient with low income |
| Maximum (single) | ~$730/month (65-74) | ~$1,000/month |
| Maximum (75+) | ~$800/month | ~$1,000/month |
| Taxable | ✅ Yes | Counted as income but offset by deduction |
| Income test | Clawback above $90,997 | Reduced based on income |
| Residency requirement | 10 years (partial), 40 years (full) | Same as OAS |
OAS (Old Age Security)
OAS Amounts (Approximate 2026)
| Age | Maximum Monthly | Maximum Annual |
|---|---|---|
| 65-74 | ~$730 | ~$8,760 |
| 75+ | ~$800 (10% increase) | ~$9,600 |
OAS Eligibility
| Situation | Eligible? | Amount |
|---|---|---|
| Lived in Canada 40+ years (after 18) | ✅ Full OAS | 100% |
| Lived in Canada 10-39 years | ✅ Partial OAS | (Years ÷ 40) × full amount |
| Lived in Canada under 10 years | ❌ Not eligible | $0 |
| Currently living outside Canada | Depends | Need 20+ years for portable OAS |
OAS Clawback (Recovery Tax)
| Net Income | OAS Impact |
|---|---|
| Under $90,997 | Full OAS |
| $90,997-$148,000 | Partial (lose 15¢ per $1 over threshold) |
| Above ~$148,000 | No OAS (fully clawed back) |
Example: Income of $100,000 = $9,003 over threshold × 15% = $1,350 OAS repaid.
Deferring OAS
| Start Age | Increase | Monthly Amount |
|---|---|---|
| 65 | 0% | ~$730 |
| 66 | +7.2% | ~$783 |
| 67 | +14.4% | ~$835 |
| 68 | +21.6% | ~$888 |
| 69 | +28.8% | ~$941 |
| 70 | +36% | ~$993 |
Break-even age: ~82-83. If you expect to live beyond 83, deferring to 70 pays more total.
GIS (Guaranteed Income Supplement)
GIS Amounts (Approximate 2026)
| Situation | Maximum GIS/Month |
|---|---|
| Single | ~$1,000 |
| Couple (both on OAS) | ~$605 each |
| Couple (one on OAS) | ~$1,000 for OAS recipient |
GIS Income Thresholds
| Situation | Income Cutoff (Approx) |
|---|---|
| Single | ~$21,600 annual income (excluding OAS) |
| Couple (both OAS) | ~$28,500 combined (excluding OAS) |
GIS reduces by 50¢ for every $1 of income above exemptions.
What Counts as Income for GIS
| Income Source | Counts? |
|---|---|
| CPP | ✅ Yes |
| RRIF/RRSP withdrawals | ✅ Yes |
| Employment income | ✅ (first $5,000 exempt, next $10,000 at 50%) |
| Pension income | ✅ Yes |
| Investment income | ✅ Yes |
| TFSA withdrawals | ❌ No |
| OAS itself | ❌ No |
| GIS itself | ❌ No |
Key insight: TFSA withdrawals do NOT reduce GIS. This makes TFSA the best account for low-income retirees.
Combined OAS + GIS Income
Single Senior (Low Income)
| Source | Monthly | Annual |
|---|---|---|
| OAS | $730 | $8,760 |
| GIS (max) | $1,000 | $12,000 |
| CPP (average) | $800 | $9,600 |
| Total | $2,530 | $30,360 |
Couple (Both 65+, Low Income)
| Source | Monthly (Combined) | Annual |
|---|---|---|
| OAS × 2 | $1,460 | $17,520 |
| GIS × 2 | $1,210 | $14,520 |
| CPP × 2 (average) | $1,400 | $16,800 |
| Total | $4,070 | $48,840 |
Strategies for Maximizing GIS
| Strategy | How It Helps |
|---|---|
| Maximize TFSA savings before retirement | Withdrawals don’t reduce GIS |
| Minimize RRSP if income will be low | RRIF withdrawals reduce GIS |
| Draw down RRSP before 65 | Reduce RRIF obligations |
| Avoid non-reg investment income | Interest/dividends reduce GIS |
| File taxes every year | GIS renewal requires tax filing |
How to Apply
| Benefit | Application |
|---|---|
| OAS | Usually automatic at 65 (confirm with Service Canada) |
| GIS | Apply with ISP-3025 form or My Service Canada Account |
| Renewal | Automatic if you file taxes annually |
| Retroactive | Can get up to 11 months retroactive payments |