Canada OAS Increase 2025 : In a bid to offer financial relief to senior citizens, the Canadian government is initiating an increase of up to $2350 annually, starting in 2025, for all those qualifying seniors from the OAS supplement. The thrust is on helping retirees in dealing with incessantly rising living costs due to inflation affecting basic necessities including food, housing, and health cost. Here are some of the details on how OAS would increase, eligibility criteria, and the schedule of disbursement of increased payment.
What Is OAS Benefit?
The Old Age Security (OAS) pension is a monthly payment given to almost all Canadians aged 65 years and above. It’s one of their fundamental benefits offered to help seniors, alongside the Canada Pension Plan (CPP). The OAS is drawn from general tax revenues, so you don’t have to have worked or contributed to any pension to qualify.
What’s New In 2025?
Starting January 2025, the annual maximum OAS payment will be raised by $2,350, meaning qualifying seniors may receive a maximum of $9,870 annually or about $822.50 monthly. This is one of the biggest improvements to OAS in recent years. The adjustment forms part of the government’s aims to ensure that seniors should live their lives with dignity and financial security. The OAS increase will be calculated automatically for the benefit of the eligible recipients; there is no need to reapply if you are already on OAS.
Who Qualifies For The OAS Increase?
The enhanced OAS payments will be available to:
- People who will be seniors aged 75 or more come January 2025
- Citizenship or legal resident having lived in Canada for at least 10 years since the age of 18
- Individuals in receipt of the OAS pension
Regular seniorhood OAS payments for ages 65-74 will continue until further notice. Also, annual net income should remain beneath the OAS clawback threshold, which is likely to be around $90,997 for 2025. Seniors exceeding this threshold would experience partial or full benefit deductions.
When Will The New OAS Payments Be Made?
The enhanced OAS amounts will come into effect from January 29, 2025, and will be paid monthly throughout the year. Here are some of the first OAS payment dates for the year 2025:
- January 29
- February 26
- March 26
- April 29
Payments will be made by way of direct deposit to the bank account filed with Service Canada. Seniors not yet signed for direct deposit are encouraged to complete this step using their My Service Canada Account, otherwise, they will face delays.
How To Apply Or Update Information
If you turn 75 years old in 2025 and have not applied for OAS, you can apply through an online application or submit it through a paper form. It is very important to also make sure that your personal information and bank information are current so that you receive payments on time. Complete details and assistance for the application can be found on the official [Government of Canada website](https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security.html).
Also Read: Canada CPP/OAS Hits $2,700 In April 2025, Find Out If You Qualify