Unlike the CPP which is based on work contributions, the **Old Age Security (OAS)** pension is based strictly on residency. To receive any OAS pension, you must have lived in Canada for a minimum of **10 years** after turning 18. If you have lived in Canada for less than 10 years when you turn 65, you cannot receive any OAS payout unless you reside in a country with a reciprocal social security agreement.
Understanding CPP vs. OAS
Canada has two primary public retirement systems. Newcomers accumulate benefits under different parameters for each:
- Canada Pension Plan (CPP): A contributory pension. Every time you work in Canada and earn income, a portion of your salary is deducted for CPP. Newcomers qualify for a CPP pension even if they have only worked in Canada for 1 year, though the payout will be proportional to their years of contributions.
- Old Age Security (OAS): A non-contributory, government-funded pension. Payouts are financed by general tax revenues. You do not need to work or have a job history to qualify; it is determined solely by the number of years you have resided in Canada.
OAS Partial Pension Calculations
To receive a **full OAS pension**, you must have lived in Canada for at least **40 years** after age 18. If you have less than 40 years, you receive a partial pension calculated as:
| Residency Years in Canada | OAS Pension Payout Share | Approx. Monthly Payout (2026 Reference) |
|---|---|---|
| 40 Years or more | 100% (Full Pension) | ~$720 CAD |
| 30 Years | 75% (30/40ths) | ~$540 CAD |
| 20 Years | 50% (20/40ths) | ~$360 CAD |
| 10 Years (Minimum) | 25% (10/40ths) | ~$180 CAD |
| Under 10 Years | Ineligible (0%) | $0 CAD |
International Social Security Agreements
Canada has signed international social security agreements with over 50 countries (including the US, UK, France, Australia, and India). Under these agreements:
- Totalization: If you have not lived in Canada for 10 years, you can combine your years of contribution or residency in your home country to meet the 10-year minimum requirement.
- Payment Rate: Combining years only helps you *qualify* to get a pension. The actual payment amount will still be based on the exact years you resided in Canada (e.g. 10/40ths for 10 years).
This guide compiles official Service Canada guidelines and pension requirements sourced directly from:
• Service Canada Old Age Security Overview: canada.ca/oas-pension-overview
• Service Canada International Social Security Agreements: canada.ca/pension-agreements