OAS clawback at $95,323. Plan around it.
Every dollar of net world income above $95,323 in 2026 triggers a 15% Old Age Security recovery tax. Optiml models the income, the timing, and the accounts so your OAS stays whole.
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OAS clawback avoided
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Income smoothed under threshold
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RRSP meltdown sequenced
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Pension income split
As seen in: Globe and Mail · Financial Post · Invest Nova Scotia · fintech.ca · Moolala Podcast
125,000+ plans run
4.8 / 5 rating
BBB A+
PIPEDA compliant
The surtax math
The 15% recovery tax at three income levels.
Three illustrative net-world-income snapshots against the 2026 threshold of $95,323. Numbers are illustrative for ages 65 to 74 and assume no other adjustments. Your specific number depends on your full plan.
Income $80,000: under the threshold
Net world income lands $15,323 below the $95,323 threshold. The recovery tax does not apply. You keep the full Old Age Security benefit. This is the planning zone Optiml aims to keep retirees inside as long as possible.
Income $120,000: about $25K above
Net world income is roughly $24,677 above the threshold. The 15% recovery tax applies to that excess, illustratively about $3,700 of OAS clawed back on next year's payments. Manageable, but compounding over a long retirement.
Income $160,000: full elimination zone
Once net world income clears about $155,123 (or $158,196 if you're 75 or older), the recovery tax has eliminated the entire OAS benefit for the year. The full federal benefit is gone. This is the zone where the meltdown plus pension splitting matter most.
What Optiml does for the OAS clawback question
Every Optiml plan answers the clawback question for your specific situation.
Not a generic threshold worksheet. Your accounts, your tax brackets, your CPP and OAS timing, your spouse, your province. Re-run it any time something changes.
Threshold guard, every year
Optiml caps modelled net world income year by year so your retirement income stays under the OAS recovery threshold whenever the math allows it.
RRSP meltdown, sequenced
Your RRSP is drawn down earlier, in lower-bracket years, so RRIF minimums in your 80s and 90s don't push you above the threshold once you finally need OAS most.
CPP and OAS timing built in
Canada Pension Plan and Old Age Security start ages from 60 to 70 are modelled together. Deferring OAS to 70 earns a 0.6% per month credit, up to 36%, and Optiml weighs that against the clawback risk in your specific plan.
Pension income splitting
Once you're 65, RRIF and LIF withdrawals can be split between spouses for tax purposes. Optiml applies the split automatically and rebalances the household income against two OAS thresholds, not one.
TFSA as the threshold buffer
TFSA withdrawals are not part of net world income for OAS purposes. Optiml routes higher-income years through your Tax-Free Savings Account first so the threshold doesn't trip.
Eva, your in-app AI assistant
Ask 'what if I defer OAS to 70?' or 'what happens if my pension goes up by $10K?' in plain English. Eva is grounded in your own plan and built on Google Gemini. Available on Pro+ and Legacy.
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Two ways to handle the OAS threshold
OAS on autopilot. Or your clawback plan, before retirement income lands.
OAS on autopilot
STATUS QUO
15%
recovery tax above $95,323
- Net world income above $95,323 in 2026 triggers a 15% recovery tax
- RRIF minimums, CPP, and pension income stack on top of each other
- OAS fully eliminated by about $155,123 (or $158,196 if you're 75+)
- The threshold is set by the CRA and indexed each year, not by your plan
- Whatever you lose to recovery tax doesn't come back
Optiml clawback plan
BUILT FOR YOU
3 to 15%
illustrative lifetime-tax range
- Income smoothed across years to stay under the recovery threshold
- RRSP melted earlier in lower-bracket years to shrink later RRIF minimums
- Pension splitting and TFSA sequencing modelled together
- CPP and OAS start ages solved alongside the rest of your plan
- Re-optimized any time your income, brackets, or balances change
Illustrative example. Your results are unique.
The Canadian rules a clawback plan has to model
What separates a clawback plan from a clawback guess.
Keeping OAS whole only works if every neighbouring CRA rule is modelled at the same time. Optiml builds them in.
OAS Recovery Threshold, indexed
Optiml uses the current 2026 threshold of $95,323 and applies the published indexation each year so the cap doesn't go stale on you mid-plan.
Bracket caps, federal and provincial
Optiml merges your federal and provincial brackets into a single boundary set, then caps each year's withdrawals so smoothing under the OAS threshold doesn't accidentally push you into a higher marginal bracket.
OAS deferral credit
Deferring OAS past 65 earns a 0.6% per month credit, up to 36% at 70. Optiml weighs the larger benefit against the larger income each year and picks the start age that minimizes lifetime tax.
Age 75 OAS top-up
OAS payments increase by 10% the month after you turn 75. Optiml models the higher 75+ benefit and the higher 75+ elimination point of about $158,196 so the plan tightens automatically once you cross 75.
LIF, corporate, and dividend income
Locked-in funds and corporate accounts feed into the same net-world-income calculation. On the Legacy plan, CCPC and HoldCo dividends are modelled in the same yearly OAS picture as your personal income.
Pension splitting attribution
Optiml respects the eligible-pension-income rules so split amounts move correctly between spouses for OAS purposes, not just for headline income tax.
What Optiml Actually Gives You
Not features. Outcomes.
Behind every tool is a feeling. Confidence. Clarity. Control. Here is what Optiml is really built to give you.
Yes, you can retire.
Stop wondering if you have enough. Optiml runs your complete financial picture and gives you a clear, honest answer backed by math, not guesswork.
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Your plan is stress tested across market downturns, rising inflation, and varying returns. Know that your income holds up no matter what the market does.
More for your family, less for the CRA.
Optiml models the most tax efficient way to pass on your estate. Avoid unnecessary tax liabilities so your beneficiaries keep what you worked hard to build.
Your plan, on your terms.
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Know exactly what to draw, and when.
Get a year by year withdrawal roadmap showing which account, how much, and in what order. No spreadsheets. No guessing. Just a clear path through retirement.
See your tax picture, start to finish.
Watch how your tax liability evolves through every stage of retirement. Identify the windows where smart moves make the biggest difference.
What Canadians say about Optiml
From Canadians who built their clawback plan in Optiml.
“Loving the independence and education that Optiml is giving my husband and me as we prepare for retirement. With Optiml's clear visual dashboards, it's the first time we have felt we can understand and take ownership of a draw-down strategy. We got this!”
Karen R., Alberta
“Finally found a retirement planning tool that takes into account all aspects of my financial situation. The tax optimization features are incredible!”
Robert P., Edmonton AB
Frequently asked about the OAS clawback
Questions Canadians ask about the recovery tax.
Built in Canada
“We built Optiml to empower Canadians to build their own financial plans and gain the confidence to make informed decisions about their financial future.”
Zac Davies
Co-Founder & CEO, Optiml
Headquartered in Halifax, Nova Scotia
Plan around the OAS clawback, before it costs you.
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14-day free trial. Cancel anytime in-app.
14-day free trial. Cancel anytime in-app.