The Old Age Security (OAS) program is a vital support system for seniors in Canada. In 2025, there will be significant changes to the OAS payments, with an increase to help Canadians aged 65 and older cope with the rising cost of living.
This article breaks down the new payment amounts, eligibility criteria, payment dates, and other important details for those receiving OAS in 2025.
OAS Payment Increases in 2025
As of January 2025, OAS payments have seen an increase of 2.0% in line with inflation. The new monthly payment amounts for OAS recipients are as follows:
- Ages 65 to 74: $727.67 per month
- Ages 75 and over: $800.44 per month
These payments are adjusted quarterly based on the Consumer Price Index (CPI), ensuring that the payments reflect changes in the cost of living. This adjustment helps ensure that the OAS payment continues to support seniors in maintaining their purchasing power.
One-Time OAS Top-Up for Seniors Aged 75 and Over
To provide additional financial support to seniors aged 75 and older, the government has introduced a one-time OAS top-up of $650.
This payment is designed to provide immediate financial relief and will be automatically deposited into eligible recipients’ accounts on March 27, 2025. This top-up payment will be provided to seniors who are 75 years or older and meet the eligibility criteria.
OAS Payment Dates for 2025
The OAS payments are issued monthly. Here is the schedule for the first few OAS payments in 2025:
- January 29, 2025
- February 26, 2025
- March 27, 2025 (including the one-time top-up)
- April 28, 2025
- May 28, 2025
Payments are typically deposited directly into your bank account, though cheques are sent by mail if you are not set up for direct deposit. Ensure that your banking information is up-to-date to avoid delays in receiving your payments.
Eligibility for OAS in 2025
To qualify for OAS, individuals must meet the following criteria:
- Age Requirement: You must be 65 years old or older.
- Residency Requirement: You must have lived in Canada for at least 10 years after the age of 18. To qualify for the full OAS payment, you must have lived in Canada for 40 years after turning 18.
- Income Threshold: OAS payments are income-tested for individuals with annual net world income exceeding $86,912. If your income exceeds this amount, you may face an OAS clawback, where the payment amount is reduced based on your income above this threshold.
How to Apply for OAS
For most people, OAS is automatically applied for if you meet the eligibility criteria and have filed your taxes. However, if you are approaching 65 and have not been automatically enrolled, you will need to apply:
- Online: You can apply through your My Service Canada Account.
- By Mail: If you prefer, you can submit the OAS application form by mail to Service Canada.
It is recommended to apply at least six months before you turn 65 to avoid any delays in receiving your first payment.
Maximizing Your OAS Benefits
To ensure you are receiving the maximum OAS benefit:
- File Your Taxes on Time: The OAS clawback is determined based on your annual income. Filing your taxes promptly ensures that your income is assessed accurately and that you receive the correct OAS amount.
- Keep Your Information Updated: Ensure that your address and banking information are up-to-date with Service Canada to avoid delays in receiving your payments.
The 2025 OAS payment boost is a positive step towards supporting Canadian seniors with the rising cost of living. With an increase of up to $2,350 annually and the $650 one-time top-up, seniors will have extra financial relief to manage their expenses.
By staying informed about eligibility requirements, application procedures, and payment schedules, seniors can ensure they are receiving the full benefits available to them.
FAQs
How do I know if I am eligible for the OAS payment?
To be eligible for OAS, you must be at least 65 years old, have lived in Canada for at least 10 years after age 18, and meet the income requirements. You can check your eligibility by applying through Service Canada.
Will working after 65 affect my OAS payment?
If your income exceeds the OAS clawback threshold of $86,912, your payments will be reduced based on your income over this amount. Otherwise, continuing to work after 65 will not affect your OAS payments.
Can I receive OAS if I moved to Canada after 65?
Yes, you can receive OAS if you moved to Canada after turning 65, but your payments will be pro-rated based on the number of years you lived in Canada after age 18. To receive the full OAS, you must have lived in Canada for at least 40 years after turning 18.