Why Your OAS Might Be Reduced: Understanding the Clawback (2025 Update)

 Many seniors are surprised to find their Old Age Security (OAS) payments reduced. This is due to what’s called the OAS clawback — officially known as the OAS Recovery Tax. Let’s break it down in simple terms.

🧾 What is the OAS Clawback?

If your net income for the year is higher than a certain amount, the government will start to take back part of your OAS pension.

• For 2025, if your income in 2024 is over $93,454, you may face a clawback.

• The government takes back 15 cents for every dollar over that amount.

• If your income is very high — over $151,668 — your OAS might be completely clawed back.

💰 A Simple Example

• You made $120,000 in 2024.

• That’s $26,546 over the $93,454 threshold.

• Clawback: 15% of $26,546 = $3,981.90

• Monthly reduction: $3,981.90 ÷ 12 = about $332 per month less in OAS.

🛠️ How to Avoid or Reduce the Clawback

Here are a few ways seniors can plan ahead:

1. Income Splitting
   Share retirement income with your spouse to lower your taxable income.

2. Use TFSA Instead of RRSP
   TFSA withdrawals are not counted as income and won’t affect OAS.

3. Delay Taking OAS
   If you wait until age 70, your monthly OAS is 36% higher — and may avoid early clawbacks.

4. Watch Your Investments
   Dividends, capital gains, or RRIF withdrawals can push your income over the limit.

5. Donate Wisely
   Giving to charities, especially with stocks, may reduce taxable income.

✅ Final Thoughts

Only about 5% of seniors face clawbacks, but it can be a nasty surprise if you’re not prepared.
The key is to plan your income carefully, especially in the years before and after turning 65.

If in doubt, speak to a financial advisor — or just chat with a well-informed friend over coffee. ☕

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為什麼你的老年金（OAS）會被扣減？——2025年版本淺談 Clawback

很多長者發現他們的老年保障金（OAS）被扣減，感到驚訝。其實這是政府所謂的 OAS 扣回機制（Clawback），官方名稱是 OAS Recovery Tax。讓我們用簡單方式來解釋。

🧾 什麼是 OAS Clawback？

當你的年度 淨收入 超過某個數字，政府就會開始從你的 OAS 補助中拿回一部分。

• 2025年 的門檻是：2024年收入超過 $93,454 就會開始扣減。

• 每多出 $1，政府就會扣回 15分。

• 如果你的收入超過 $151,668，OAS 可能會被 全部扣回。

💰 簡單例子

• 你在 2024 年的收入是 $120,000。

• 超過門檻的部分是：$120,000 - $93,454 = $26,546。

• 被扣回的金額：$26,546 × 15% = $3,981.90

• 每月少拿的 OAS：約 $3,981.90 ÷ 12 = $332

🛠️ 如何減少或避免 Clawback？

這裡有一些實用的做法：

1. 收入分拆（Income Splitting）
   把退休金與配偶分享，減少你個人的應稅收入。

2. 多用 TFSA，少用 RRSP
   TFSA 提款不算收入，不會影響 OAS。

3. 延遲申請 OAS
   等到 70 歲才開始領 OAS，月金會增加最多 36%，還可能避開 clawback。

4. 小心投資收入
   投資股息、資本增值或 RRIF 提款，都可能讓收入超標。

5. 聰明捐贈
   尤其用股票捐給慈善機構，可以減低應稅收入。

✅ 小結

只有大約 5% 的長者會被扣回老年金，但如果沒有計劃好，可能會令人措手不及。
提早了解、妥善安排收入，是避免這種情況的最佳方法。