The Allowance is a monthly, tax-free benefit under Canada’s Old Age Security (OAS) program for certain low-income people aged 60 to 64 whose spouse or common-law partner receives the Guaranteed Income Supplement (GIS). It provides income support during the years before the younger partner becomes old enough for OAS.
Unlike the OAS pension, the Allowance is not a general retirement benefit available simply because someone reaches a particular age. It exists for a narrower household situation in which one partner receives OAS and qualifies for GIS while the other is still below OAS age.
How the OAS Allowance Works
The Allowance is part of the OAS program, but the person receiving it does not need to be receiving an OAS pension themselves. Under the 2026 rules, the recipient must be 60 to 64, while their spouse or common-law partner must receive OAS and be eligible for GIS. Other conditions involving residence, legal status, sponsorship and household income also apply. We cover those requirements separately in our guide to OAS Allowance eligibility.
Income matters because the Allowance is an income-tested benefit rather than a fixed payment. The amount is based on the couple’s combined income, and a higher income can reduce the payment. For July through September 2026, the combined annual income threshold is less than $42,144 when the spouse or common-law partner receives GIS and the full OAS pension. Current payment amounts and the way income changes the benefit are covered in our guide to how much the OAS Allowance pays.
One useful feature is that the Allowance is tax-free. That separates it from the OAS pension itself, which is taxable income.
What Happens to the Allowance at 65?
The Allowance is specifically a pre-65 benefit. Payment ends when the recipient reaches the age at which they can become eligible for OAS and GIS under the normal rules. In other words, it is not an additional benefit that continues alongside someone’s own OAS pension after 65.
Other events can also affect payment. For example, the Allowance cannot be collected after an absence from Canada of more than six months. The underlying legislation also provides for the benefit to cease when certain qualifying conditions are no longer met.
Anyone approaching the end of the Allowance period should therefore check their own OAS eligibility rather than assuming the transition will produce the same monthly income.
The Allowance Is Different From the Allowance for the Survivor
The similar names can easily cause confusion. The regular Allowance applies when the qualifying spouse or common-law partner is alive. A separate benefit, the Allowance for the Survivor, can apply to a low-income person aged 60 to 64 whose spouse or common-law partner has died and who has not remarried or entered another common-law relationship.
If someone receiving the regular Allowance loses their spouse or common-law partner, their benefit is automatically converted to the Allowance for the Survivor. The eligibility and income rules for that benefit are different, so we cover them separately in our guide to the Allowance for the Survivor.
Other Questions About the OAS Allowance
Can a social security agreement help if you have lived in Canada for less than 10 years?
Yes. Someone who does not meet the usual Canadian residence period may still qualify for a partial Allowance if they lived or worked in a country that has a social security agreement with Canada.
What happens if your income drops after retirement?
When you or your spouse or common-law partner has lower annual income because of retirement, or another pension benefit is reduced or stops, the benefit may be calculated using an estimate of current-year income instead of the previous year’s income. You need to contact the OAS program about the income change.
Do you receive the Allowance automatically when your spouse starts GIS?
Automatic enrolment can occur when the government has enough information to determine that a person qualifies and waives the application requirement under the 2026 Old Age Security Act. Otherwise, an application is required. Our separate guide explains how to apply for the OAS Allowance.
