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. ☕

🧾 Other Factors That May Reduce or Delay Your OAS Benefits

1. Not Meeting the Full Residency Requirement

• To receive full OAS, you must have lived in Canada for at least 40 years after age 18.

• If you've lived in Canada less than 40 years, your OAS is prorated.

  • Example: 20 years in Canada = you get 20/40 = 50% of the full OAS amount.

• Seniors who immigrated later in life or spent long periods abroad may receive partial OAS only.

✅ Tip: Some countries have a social security agreement with Canada (like Hong Kong, UK, Italy, China, etc.) — you may still qualify for full/partial OAS using combined years.
More info: Service Canada – International Benefits

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2. Deferring OAS Past Age 65

• If you choose to delay OAS, you get a higher monthly amount (0.6% more per month, up to 36% more if you wait until 70).

• But during that time, you receive no OAS at all — so your benefit is temporarily zero.

• Some seniors forget they opted to defer and think their benefits are “missing.”

✅ Tip: If you’re not receiving OAS by 65 and haven't applied to defer, contact Service Canada.

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3. OAS Application Not Submitted or Delayed

• OAS is not automatic for everyone. Some are auto-enrolled, but many must apply.

• If you haven’t applied or missed the deadline, you could lose months of payment.

✅ Tip: Apply 6 months before turning 65 if you haven’t received auto-enrollment notice.

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4. Withholding Tax for Non-Residents

• If you live outside Canada for more than 6 months in a year, your OAS may be subject to non-resident tax (typically 25%).

• In some cases, your benefit may be reduced or stopped if you haven’t lived in Canada for at least 20 years after age 18.

✅ Tip: Some countries have tax treaties with Canada that reduce or eliminate the withholding.

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5. Incorrect Tax Information or CRA Errors

• If you don’t file your tax return on time, or file it with errors, CRA might assume you earned more than you did — triggering clawback or suspension.

• OAS may be reduced until your correct income is reported.

✅ Tip: Always file your annual tax return by April 30 to avoid benefit disruption.

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6. Other Government Benefits May Affect Net Income

• If you're receiving CPP, RRIF withdrawals, rental income, capital gains, etc., these increase your net income, which could trigger clawbacks.

• Even one-time events, like selling a property or cashing out a large investment, can raise your income temporarily.

✅ Tip: Work with an advisor or use income-smoothing strategies in retirement.

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7. Repayment Due to Overpayment

• Sometimes Service Canada overpays by mistake (e.g., due to travel, death of spouse, or income reassessment).

• You may receive a letter asking you to repay part of the benefit.

✅ Tip: Always report address changes, marital status, or overseas trips over 6 months.

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✅ Summary Table

Factor	Impact on OAS
Less than 40 years in Canada	Partial OAS only
High income (over $93,454)	OAS clawback (15% overage)
Chose to defer OAS	No benefit until you start it
Didn’t apply / missed deadline	No payment until applied
Living outside Canada	Possible 25% tax or suspension
CRA/tax return issues	Temporary reduction or pause in benefits
Overpayment or reassessment	You may owe money back

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。

🧾 可能減少或延遲您 OAS 福利的其他因素

1. 未達到完整居住年限的要求

若要領取全額 OAS（老年保障金），您必須在18 歲後於加拿大居住至少 40 年。

若您在加拿大居住的年限少於 40 年，OAS 金額將按比例減少。

例如：若您在加拿大住了 20 年，則您可獲得 20/40 = 50% 的全額 OAS。

晚年移民或長時間居住在國外的長者，可能只能領取部分 OAS。

✅ 小提醒：有些國家與加拿大簽有社會保障協議（如香港、英國、意大利、中國等），可以合併計算年限來符合全額或部分 OAS 的資格。
👉 更多資訊請參閱：Service Canada – International Benefits

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2. 延遲申領 OAS 超過 65 歲

如果您選擇延遲申領 OAS，每延遲一個月，可增加 0.6% 的月金，最多可增加 36%（延至 70 歲）。

但在這段期間，您完全不會收到 OAS，也就是說暫時 OAS 為 0。

有些長者會忘記自己曾申請延遲，誤以為政府「沒發錢」。

✅ 小提醒：如果您到了 65 歲仍未收到 OAS，且也未申請延遲，請立即聯絡 Service Canada 查詢。

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3. 沒有申請 OAS 或延遲申請

並非所有人都會自動加入 OAS 領取計畫，有些人必須主動申請。

如果您未申請或錯過了申請期限，可能會損失數月的補助金。

✅ 小提醒：若您沒有收到自動登記通知，請在65 歲前 6 個月主動提出申請。

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4. 非居民稅（住在國外）

若您每年在加拿大以外居住超過 6 個月，您可能需要繳納 非居民稅（通常為 25%）。

此外，如果您在 18 歲後未在加拿大居住滿 20 年，有可能OAS 被減少甚至取消。

✅ 小提醒：部分國家與加拿大有稅務協議，可以降低或免除這筆稅金。

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5. 報稅資料錯誤或 CRA 錯誤

如果您未準時報稅，或報稅有錯，稅局（CRA）可能會以為您收入過高，導致 OAS 被暫停或扣減。

直到您的正確收入資料送達前，OAS 可能會暫時被扣減。

✅ 小提醒：每年請務必在 4 月 30 日前報稅，以避免影響 OAS 領取。

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6. 其他政府補助影響淨收入

如果您領取 CPP、RRIF 提領、租金收入、資本利得 等，這些都會增加您的年度淨收入，可能會觸發 OAS 扣減（clawback）。

有時候，像賣房或大額投資贖回這類一次性收入，也會讓收入短期內增加。

✅ 小提醒：退休後可與理財顧問討論，採取收入平衡策略（income smoothing）。

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7. 過度發放後要求退還金額

有時 Service Canada 可能因錯誤或情況變動（例如：旅遊、配偶過世、收入重新評估）多發了 OAS 給您。

您可能會收到一封信，要求退還部分款項。

✅ 小提醒：請務必通報住址變更、婚姻狀態改變，或若出國超過 6 個月，應即時向政府申報。

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✅ 整理一覽表

因素	對 OAS 的影響
在加拿大居住不足 40 年	僅領取部分 OAS
高收入（超過 $93,454）	OAS 扣減（每超出 $1 扣 15 分）
延遲領取 OAS	延遲開始領取前不會收到 OAS
未申請或錯過申請期限	無法領取補助金，直到完成申請為止
長期居住在國外	可能要繳 25% 稅或被取消 OAS
CRA 報稅問題	OAS 可能暫時被減少或中止
過度發放或重新評估	政府可能要求退還部分款項