OAS payments are based on net income. If your OAS payments are subject to a clawback, it’s because your net income meets a certain threshold and is considered more adequate than income that a lower-income individual would earn. But there are ways you can minimize your net income, possibly resulting in a higher OAS payment.

Interest income is taxed at your full marginal rate. Holding investments that generate tax-efficient income in the form of capital gains can help minimize your net income.

A portion of each annuity payment is considered a return of capital and is therefore tax-free – only the portion that is interest is taxable.

If you are not yet age 71 and have unused RRSP deduction room, make a final RRSP contribution. You don’t have to take your deduction all at once – you can spread it out over time, even beyond age 71.

If you have discretionary income, take a loan to invest. Interest on loans for investment purposes may be tax-deductible.

Seek professional advice when preparing your income tax return to ensure that you claim all available deductions for your situation.

Try withdrawing income from a savings vehicle at a slower pace and in smaller amounts.