OAS threshold debate resurfaces
Media coverage reported growing political support to lower the Old Age Security income threshold — a change that would make OAS phase‑outs affect higher earners sooner, according to a March analysis. The debate underscores the risk that future retirees with high lifetime earnings could see reduced public benefits. (theglobeandmail.com)
The official OAS “recovery tax” threshold (net world income) was $90,997 for the 2024 tax year (applies July 2025–June 2026), rises to $93,454 for 2025 (applies July 2026–June 2027) and is listed at $95,323 for 2026 (applies July 2027–June 2028) on the federal OAS schedule. (canada.ca) The program reduces OAS by 15 cents for every dollar of net world income above the threshold, with full repayment reached at roughly $148,451 (age 65–74) and $154,196 (75+) for the 2024 income year and about $152,062 / $157,923 for the 2025 income year per Service Canada tables. (canada.ca) Generation Squeeze’s model and February 2026 campaign propose shifting to a household‑based cutoff — lowering the effective full‑benefit ceiling from about $182,000 of combined income to $100,000 — and estimates that change would free roughly $7 billion a year (and up to nearly $13 billion if aligned with the $81,000 Canada Child Benefit threshold). (gensqueeze.ca) The advocacy push included a Feb. 3, 2026 news conference on Parliament Hill and a peer‑reviewed article backing the modelling, while Ottawa’s finance minister has publicly said the government is reviewing major spending lines as it prepares budget choices. (cpac.ca) National seniors’ group CARP has publicly condemned the proposal as risking cuts for middle‑class retirees and argued the Generation Squeeze vignettes represent a very small fraction of Canada’s more than seven million adults aged 65 and over. (carp.ca) Because OAS rules and income definitions are set in the Old Age Security Act and accompanying regulations and the recovery calculation uses prior‑year net world income, any switch from an individual to household measure or a lowered statutory cutoff would require legislative or regulatory amendments and would apply prospectively to future tax years. (laws-lois.justice.gc.ca)
