Upon reaching age 65, you are entitled to receive Old Age Security (OAS) subject to a clawback provision. You are entitled to Canada Pension Plan (CPP) if you have paid into the program and have not taken early CPP. You may also delay your CPP until age 70. You are also entitled to an age credit, again subject to a clawback.
The maximum basic benefit OAS one may receive is $6,942. The clawback begins when net income reaches $73,756. OAS is reduced to nil once net income reaches $119,512. There is an additional guaranteed income supplement for very low income seniors.
The maximum age credit is $7,125. The clawback begins when net income reaches $35,927. The credit is reduced to nil for net income greater than $83,427.
Note that different provinces have similar programs and credits which are calculated differently across the country. Care should be taken by some individuals in their retirement income planning so as to avoid clawbacks where possible.
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