Pension can be scary, but the Canadian Revenue Agency (CRA) has your back. This pension benefit has nothing to do with your labor status or your contributions from your work income, as in the case of the Canada Pension Plan (CPP). If you are 65 years old and have lived in Canada for at least 20 years after you have turned 18, you are eligible to get this taxable payment. This CRA is the retirement of the old age security (OAS) and the payment can be as high as $ 734.95 per month, around $ 8,820 per year, for persons aged 65-74.
How the older security clawback works
The OAS is intended for low and average incomes. This means that it has an incremental income threshold, and if your income is above this threshold, the CRA will clew your OAS back.
The CRA calculates your OAS based on the income of your previous year. It means that your 2025 OAS -Clawback depends on your taxable income from 2024, including capital gains, dividends, salary and registered pension income fund (RRIF) recordings.
The 2024 Minimum threshold for income recovery Was $ 90,997 and the maximum was $ 148,451. What does this mean?
If your taxable income of 2024 is higher than $ 90,997, the CRA will return 15% of the surplus income from your OAS as a repair tax. The OAS amount that you will receive in 2025 would be after deduction of the amount of the claws.
Suppose the taxable income of Jacob 2024 was $ 120,000. His surplus income is $ 29.003, from which the CRA $ 4,350.45 (15% of $ 29.003) will claw and give it $ 4,469.55 in OAS, which comes to $ 372.41 per month.
| Detail | Quantity | Calculation |
| Jabob’s 2024 Income | $ 120,000 | |
| OAS minimal income threshold | $ 90,997 | |
| Excess amount | $ 29.003 | $ 120,000- $ 90,997 |
| Oas Clawback amount | $ 4,350.45 | 15% x $ 29.003 |
| Oas paid in 2025 | $ 4,469.55 | $ 8,820- $ 4,350.45 |
| OAS per month | $ 372.46 | $ 3,469.55 / 12 months |
The income threshold that Oas Clawback activates in 2025
If you are confronted for a weak income year in 2025, the OAS -Clawback can hurt even more. It is therefore important to plan your pension benefits and to know the income threshold of 2025 that can activate OAS -Clawback.
The minimum income threshold of 2025 for OAS is $ 93,454, and the maximum is $ 151,668, which can be adjusted later.
You must plan your investment income, RRIF -recordings, CPP payment and tax deduction in a way that keeps your taxable income from 2025 under or closer to $ 93,454 to get maximum OAS.
Tips to get maximum OAS
RRSP -contribution: If your taxable income of 2025 is probably far above $ 93,454, you can postpone your included pension savings plan (RRSP) and contribute another year instead. In this way you can deduct the RRSP contribution to reduce your taxable income and get maximum OAS.
CPP -Payment: You can postpone your CPP payment by one year to reduce your taxable income. In this process you can increase your CPP payment by 8.4%, 0.7% for each month of delay from 65 years.
Tfsa -dividends: The CRA calculates the dividend income as 138% of the actual dividend amount when determining the income for the OAS threshold. If you earn $ 1,000 from dividend revenues, the OAS counts it as $ 1,380. During the pension after retirement, consider investing in dividend shares via the tax -free savings account (TFSA).
Choosing the right account for the right investment can help you maximize the pension benefits.
Some good shares for extensive RRSP contributions
While maximizing your OAS, you can consider investing your RRSP contribution in Telus Corporation (TSX: T). With not much time before taking RRIF recording, you may want to maximize your payouts and Telus’s 7.6% dividend yield can give you high payments and even let them grow with inflation.
The Telco has delayed its dividend growth rate from 7-10% in 2025 to 3-8% in 2026, but even the reduced growth rate is good to combat inflation. The delay in dividend growth is compensated by a higher yield. If you are worried that Telus can announce Dividend Cutting such as his pear BCERest assured. Telus focuses on reducing his debt and capital expenditure. T -shares have improved its dividend payment ratio from 81% in 2024 to 76% in the first quarter of 2025.
An investment of $ 10,000 can provide you with $ 749.83 to annual TFSA dividends, which is closer to a month of maximum OAS. Moreover, this income will not kill your OAS.
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