Old Age Security (OAS) is definitely an excellent addition when Canadians enter retirement. However, at the time of writing this article, OAS payments aren’t exactly enormous. Which is why many investors might be looking for ways to increase those payments, if not double them! So today, let’s do just that by looking at what investors get from OAS payments, what those goals can be, and a dividend stock to help double them.
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Into OAS
Let’s start with what doubling that OAS payment really means, and what OAS is. OAS is a federal program paying monthly pensions to Canadians aged 65 and older, as long as they meet residency requirements. It’s funded from general tax revenues, rather than by contributions like the Canada Pension Plan (CPP).
At writing, the maximum OAS payment is $740.09 per month, coming to $8,881.08 per year for those aged between 65 and 74 years old. They increase if you wait until 75, hitting $814.10 per month or $9,769.20 per year in 2025. But as mentioned, these are maximum amounts.
This is where the OAS clawback and recovery tax comes into play. The clawback threshold comes in once you hit an income that’s higher than $90,997 as of 2025. Then you need to start paying back part of your OAS payments. Even worse, that can be clawed back completely if you hit $148,451 before 75, and $154,196 after. And even with those maximum amounts, let’s be honest, the amounts are modest compared to inflation and daily costs.
Start doubling
With all this taken into consideration, it’s no wonder the average OAS payment is far lower. And it’s even more clear why many Canadians might seek to invest it to turn it into higher payments. Right now, if you wanted to double your OAS payments, that could mean creating another $9,000 per year or about $750 per month, and that’s no easy feat.
To do this, you’ll need a dividend or investment that creates income that’s growing and sustainable. One that keeps pace with inflation. Plus, you need to manage taxable income carefully so you don’t trigger an OAS clawback, which is why a Tax-Free Savings Account (TFSA) is your best option.
Then, look to create a diversified portfolio of dividend growers rather than focusing on just a high yield. Investors want to make sure that dividend can sustain for decades. Which is why today we’re going to consider Sun Life Financial (TSX: SLF).
SLF
SLF stock is a solid dividend stock making it a perfect companion to OAS income. It combines reliable, growing cash flow with a strong balance sheet and a yield that’s both generous and sustainable. For Canadians aiming to double their OAS payments through dividends, Sun Life offers the kind of long-term dependability and growth that can keep those payments rising well into retirement.
Sun Life is one of Canada’s largest life insurance and asset management companies, serving over 30 million clients worldwide. It operates through four key divisions, providing insurance and wealth management across Canada, the U.S. and Asia, as well as asset management. Currently, it oversees nearly US$1.4 trillion in assets under management.
Even during market volatility the dividend stock comes out strong, reporting in the second quarter of 2025 9% growth in net income year over year, and a 5% increase in AUM. As for the dividend, it offers a $3.24 annual dividend, yielding 4% and covered by a 60% payout ratio. So if you wanted to create about $9,000 in annual income, here is how much you would need to invest for dividends alone.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SLF | $87.55 | 2,557 | $3.52 | $9,000 | Quarterly | $223,921 |
Bottom line
SLF is the kind of dividend stock that makes retirement simpler. It’s large, diversified, conservatively managed, and committed to dividend growth. The company’s global footprint gives it both resilience and long-term expansion potential, while its solid balance sheet ensures the dividend remains secure.
When held in a TFSA or RRSP, those dividends compound quietly and tax-free. And remember, you can always chip away towards those high payments rather than bulk invest all at once. Over time, your portfolio becomes its own pension, one that comfortably doubles your OAS payments and keeps growing long after you’ve stopped working.
