For millions of Canadian seniors, Old Age Security payments are a key part of their retirement income. For a lot of people, the monthly deposit pays for food, rent, medicine, and utilities. But not every retired person needs it. More and more seniors who are financially stable are asking a different question: Should I give my Old Age Security payment to charity if I don’t really need it?
As the next OAS payment approaches, this issue is coming up again in opinion pieces, retirement forums, and conversations about financial planning. Most seniors depend on these payments a lot, but some wealthy retirees see them as extra money and are looking into how they can be used for causes they care about.
This article talks about how Old Age Security works, who can get it, how the amount of the payment is decided, when the next payment will be made, and what seniors can do if they want to give away their OAS income instead of keeping it.
What is Old Age Security and how does it work?
The federal pension program Old Age Security, or OAS, is paid for by general tax revenues. OAS is not based on work history or direct contributions, unlike the Canada Pension Plan. Instead, age and the number of years you have lived in Canada after turning 18 are the main factors that determine eligibility.
To be eligible, people must:
- Be at least 65 years old
- At the time of approval, you must be a Canadian citizen or legal resident.
- Have lived in Canada for at least ten years after turning 18
Most seniors need to have lived in Canada for 40 years after turning 18 in order to get a full OAS pension. People who have lived in the area for fewer years may get a partial payment.
The payment is made every month, and it changes every three months to reflect changes in the Consumer Price Index. This means that OAS amounts can go up with inflation, which helps keep purchasing power.
When will the next OAS payment be made?
Payments from OAS are sent out once a month, usually at the end of the month. Seniors who have signed up for direct deposit get their money directly into their bank accounts on the day it is due. People who get paper checks may have to wait a little longer for them to arrive.
With the next payment coming up soon, a lot of retirees are going over their financial plans, making sure their deposit dates are correct, and making sure their direct deposit information is up to date.
Seniors can plan their monthly budgets with relative ease because OAS payments come on a regular schedule. But any talk about giving away OAS money usually gets more heated around payment time, when retirees think about how the money fits into their overall financial picture.
Seniors will get bigger OAS payments starting in February 2026 as the rates change.
How Much Money Do Seniors Get from OAS?
How much you get from the OAS depends on your age and income.
There are usually two age groups:
- People who are 65 to 74 years old
- People who are 75 years old or older
People who are 75 and older get a higher monthly amount because they often have more financial problems as they get older.
There is a recovery tax on OAS, which is often called the “OAS clawback.” If a senior’s yearly income is higher than a certain amount, they must pay back some or all of the OAS benefit through their taxes. Retirees with high incomes may have their OAS payments cut or stopped altogether.
Because of this structure, some seniors who are doing well financially still get OAS payments but have to pay back some of it at tax time. Others stay below the clawback limit and get the full payment.
This group, retirees who are financially stable and don’t depend on OAS too much, often asks about giving to charity.
Why Some Older People Want to Give Away Their OAS
OAS may only be a small part of a retiree’s total income if they have a lot of private pensions, investment income, rental properties, or business assets. They may not feel like they need it, even though it is legally and morally theirs.
There are a few reasons why people want to give OAS:
A Feeling of Civic Duty
Some older people think that if they have enough money, giving government benefits to charity is the right thing to do. They think it’s a good way to help food banks, healthcare research, community services, or education programs.
Wanting to Leave a Legacy
People often think about the long-term effects of retirement. Donating OAS payments can be a part of a planned way to give to charity that leaves a lasting legacy.
Things to think about when planning your taxes
Donating to charity can give you tax credits. Seniors whose income is close to the OAS clawback threshold may be able to lower their taxable income and offset some of the recovery tax impact by giving to charity.
Personal Satisfaction
A lot of retirees are very happy when they support causes that are important to them. Giving a set amount each month, like an OAS payment, gives charities reliable help.
Can seniors say no to OAS payments?
Seniors don’t have to apply for OAS if they don’t want it, though. But once you sign up and start getting payments, the system isn’t set up to refuse deposits every month.
It’s more practical to get the money and then give it away.
Some retirees set up automatic monthly transfers from their bank account to a charity of their choice for the same amount as their OAS deposit. This method keeps things simple for the people in charge while making sure the money is sent to the right place.
The Bigger Question: Should OAS Be More Strictly Means-Tested?
When people talk about giving away OAS, it often leads to a bigger policy debate. Some people think that OAS should be more focused on seniors with low or middle incomes instead of being available to everyone with a clawback mechanism.
Others support the universal structure, saying it protects dignity, lowers stigma, and makes administration easier. The clawback already makes sure that seniors with higher incomes pay back some or all of the benefit through taxes.
As payment cycles get closer, this debate becomes more obvious and fairness talks come up again.
Planning your finances before giving OAS
Financial planners always tell seniors to look at their whole financial picture before giving money to OAS, even though it can be kind and meaningful.
Things to think about are:
- Are all of the costs of healthcare and long-term care covered?
- Do you have enough money saved for emergencies?
- Is it possible that inflation will lower the value of money over time?
- Are there costs that could come up in the future related to housing or family support?
Even retirees who are financially stable can have unexpected medical bills or market drops. Before making a long-term commitment to monthly donations, it’s smart to make sure that your own financial stability is safe.
Why It’s Important to File Taxes on Time
You need to file your taxes correctly and on time because OAS eligibility and clawback calculations are based on your yearly income.
Changes in income, investment gains, pension withdrawals, and charitable deductions all change how much OAS is kept or paid back.
Seniors who want to give OAS may want to talk to a tax professional to find out how charitable tax credits affect their overall retirement income.
How OAS Works with Other Retirement Benefits
Old Age Security is only one part of the puzzle when it comes to retirement income. A lot of older people also get:
- Benefits from the Canada Pension Plan
- Guaranteed Income Supplement for seniors with low incomes
- Pensions from employers
- Withdrawals from RRIF
- Income from investments
OAS is very important for seniors with low incomes, and they often get it along with the Guaranteed Income Supplement to help pay for basic needs. In those situations, giving OAS would not be possible because of money.
OAS may not be necessary for seniors with higher incomes; it may only be helpful. This difference in financial situations often affects the choice to give.
How redirected OAS payments affect the community
If even a small number of seniors with enough money redirected their OAS payments to charity, the overall effect could be big.
Monthly gifts help:
- Food banks are dealing with rising grocery prices.
- Funding research by healthcare foundations
- Community centers for seniors
- Programs to help people find affordable housing
- Scholarships for education
Charities can plan long-term programs instead of just relying on seasonal fundraising when they get regular, predictable money.
Personal and moral choice
Seniors are not morally obligated to donate their OAS. The benefit is part of Canada’s retirement system and is legally earned by living in Canada and being old enough.
For a lot of retirees, the payment is a way of saying thank you for living, working, and giving back to Canadian society for decades.
So, the choice to give is completely up to you. It shows what each person values, how safe they feel financially, and what they want to do with their life.
Getting Ready for the Next Payment
With the next OAS payment coming up soon, older people may want to:
- Check the details of the direct deposit
- Look over their monthly budget
- Figure out how the payment fits into their retirement plan.
- Choose how much to save, spend, or give to charity.
Setting up an automatic transfer after the deposit date can make it easier for people who want to give money.
