What is the 2023 OAS clawback?

The 2023 Old Age Security (OAS) clawback, or recovery tax, in Canada, starts at a net income threshold of $86,912, requiring a repayment of 15% on the income above that amount for the July 2024 to June 2025 payment period, with the full clawback occurring at higher income levels like $142,428 for ages 65-74. This tax reduces OAS benefits for higher-income seniors, based on their "net world income" (income from Canada and abroad).


How to avoid OAS clawback?

How To Minimize OAS Clawback?
  1. You could continue your RRSP contributions and reduce your taxable income to the OAS threshold amount.
  2. Another option is to keep your RRIF withdrawals and other income sources within the OAS income threshold.
  3. Or you could delay OAS and live off your RRIF withdrawals in the initial years.


What is the OAS clawback threshold for 2025?

In 2025, the clawback begins when your income exceeds $93,454. For every dollar above that amount, you must repay 15 cents of your OAS. If your income reaches approximately $151,668 (age 65–74) or $157,490 (age 75+), you could lose your entire OAS benefit for the year.


What income triggers the OAS clawback?

What is OAS clawback? The government starts reducing your OAS amount once you make over a given net world income threshold. For OAS payments received from July 2025 to June 2026, the threshold is $90,997. If your 2024 net world income is over the threshold, the reduction is triggered.

How can you avoid a clawback?

One of the most effective ways to prevent commission clawback is by educating your clients. Explain the loan process, including the costs associated with refinancing or early repayment.


How OAS Recovery Tax (Clawback) Actually Works



How many people have $1,000,000 in retirement savings in Canada?

Based on this data, approximately less than 10% of Canadians aged 55 to 64 have $1,000,000 or more saved up to carry them into retirement. However, there are ways to improve your odds of getting to $1-million-plus in retirement savings, but it will take work.

Should I take a $44,000 lump sum or keep a $423 monthly pension?

Think about how long you might live, your financial goals, and how inflation could affect your money. Talking to a financial advisor can help make this decision easier. Taxes are different for lump sums and monthly payments. Lump sums could mean higher taxes at once, while monthly payments spread out the tax burden.

Is OAS changing in 2025?

Based on changes in the Consumer Price Index (CPI), OAS benefits increased by 0.3% for the January to March 2026 quarter, for an increase of 2.0% over the past year, from January 2025 to January 2026.


What is the number one mistake retirees make?

The top ten financial mistakes most people make after retirement are:
  • 1) Not Changing Lifestyle After Retirement. ...
  • 2) Failing to Move to More Conservative Investments. ...
  • 3) Applying for Social Security Too Early. ...
  • 4) Spending Too Much Money Too Soon. ...
  • 5) Failure To Be Aware Of Frauds and Scams. ...
  • 6) Cashing Out Pension Too Soon.


What is the $1000 a month rule for retirement?

The $1,000 a month retirement rule is a simple guideline stating you need about $240,000 saved for every $1,000 of monthly income you want from your investments in retirement, based on a 5% annual withdrawal rate ($240k x 0.05 / 12 = $1k/month). It's a motivational tool to estimate savings goals (e.g., $3,000/month needs $720k), but it's one-dimensional, doesn't account for inflation, taxes, or other income like Social Security, and assumes steady 5% returns, making a personalized plan essential. 

How much can you inherit without paying taxes in Canada?

The answer? No, Canada doesn't have an inheritance tax. Case closed. “But that doesn't mean that the deceased person's estate is not taxed.


What is the highest OAS you can get?

"Max OAS" usually refers to the Maximum Old Age Security (OAS) pension in Canada, which varies by age and income, with recent figures (late 2024/early 2025) showing around $727-$742/month for ages 65-74 and $800-$816/month for 75+, but it's clawed back (reduced) for higher incomes, starting around $90,997 net income, and fully eliminated above $148,451 for younger seniors. It's a key Canadian retirement benefit for seniors. 

How much can a 70 year old earn without paying taxes?

For 2026, a single filer age 65 or older can typically earn up to $18,150 in gross income before owing federal income tax thanks to an enhanced standard deduction. Furthermore, an additional deduction created under One Big Beautiful Bill Act of 2025 will allow people 65 and older to deduct another $6,000.

How much can I earn without affecting my old age pension?

How much income can I have and still get the Age Pension? If you're single, you can earn up to $2,575.40 per fortnight and still receive a part pension. Couples can earn up to $3,934.00 combined. Transitional rate pensioners and those living apart due to ill health may have higher thresholds.


How many Americans have $500,000 in retirement savings?

While exact, real-time numbers vary, recent data suggests around 9% to 19% of American households have $500,000 or more in retirement savings, with some sources noting roughly 7% have $500k+, while others show about 9% exceed $500k, and some figures for "liquid investable assets" reach 19% having $500k+. For older age groups (55-64, 65-74), averages are higher, with many in their 60s hitting around $500k-$600k, though median savings are often lower, showing a wide disparity in wealth. 

How much is considered a good monthly pension?

A good monthly pension amount replaces 70-80% of your pre-retirement income, often translating to $4,000 to $8,000+ monthly, depending on lifestyle, but it varies greatly; aim for $5,000-$6,000 for basic needs and $8,000+ for a comfortable life, considering inflation and varying expenses like housing, travel, and healthcare. 

What is the most tax efficient way to take your pension?

Taking smaller amounts from your pot over a long period of time is more tax efficient, as you'll be subject to the lower rate of income tax. This is known as phased drawdown. It's also wise to regularly review your tax code that HMRC provides to ensure you're paying the correct amount of tax.


What is the average net worth of a 65 year old Canadian?

In late 2024, for example, during a parliamentary squabble over increasing Old Age Security (OAS) benefits for those aged 65 to 75, it was revealed that the median net worth of Canadians over 65 had risen to almost $550,000.

Can I live off the interest of 1 million dollars?

Yes, you can likely live off the interest of $1 million, but it depends heavily on your annual expenses, location, and investment strategy; using the 4% Rule suggests about $40,000/year (plus inflation adjustments), but a more conservative approach or lower spending might be needed to last, while higher-risk/return investments (like S&P 500) could yield more, like $100,000 annually before taxes, notes SmartAsset.com and Investopedia. 

What happens to OAS if I move abroad?

Receiving your payments while living outside Canada

You can receive OAS payments while living abroad if: You lived in Canada for at least 20 years after turning 18. You lived and worked in a country with a social security agreement with Canada, and your combined time in both countries is at least 20 years.


At what income level do you lose OAS?

In 2025, the clawback begins when your income exceeds $93,454. For every dollar above that amount, you must repay 15 cents of your OAS. If your income reaches approximately $151,668 (age 65–74) or $157,490 (age 75+), you could lose your entire OAS benefit for the year. How Much is the OAS Benefit in 2025?