Old Age Security (OAS) provides a monthly benefit to eligible individuals aged 65 and older, but high-income earners may face a clawback.

OAS clawback thresholds

• 2025: $93,454
• 2026: $95,323

OAS is clawed back at a rate of 15% of adjusted income above these thresholds.

Deferring OAS

Individuals may consider deferring OAS to:

• Avoid full clawback
• Receive increased future payments (0.6% per month of deferral, up to 36%)

Recent court decision

In a November 18, 2025 Federal Court of Appeal case, a taxpayer attempted to cancel OAS enrollment well after the allowable deadlines. Despite citing continued employment, COVID-19 disruptions, and administrative delays, the court ruled against the taxpayer.

The takeaway: deadlines matter, and late cancellations will not be permitted.

Action: High-income individuals approaching age 65 should evaluate OAS timing before automatic enrollment occurs.