Starting in February 2025, eligible seniors across Canada will see an increase in their Old Age Security (OAS) payments, with a maximum monthly payment of $1,615. This boost provides much-needed financial support, particularly for low-income seniors who depend on OAS and the Guaranteed Income Supplement (GIS) to cover essential living expenses like housing, groceries, and healthcare.
Knowing
The Old Age Security (OAS) program is a cornerstone of Canada’s support system for seniors, providing monthly payments to help cover living expenses. The upcoming increase reflects a combination of the OAS pension and the GIS, ensuring that payments keep pace with inflation and the rising cost of living.
For seniors with limited income, the GIS offers additional financial relief, making the total payment of $1,615 per month an essential source of support.
Eligibility
To receive the OAS payment boost, seniors must meet specific age, residency, and income criteria.
- Age: Must be 65 years or older, with an option to defer payments up to age 70 for higher monthly amounts. Each month deferred increases the payment by 0.6%.
- Residency: Canadian citizens or legal residents who have lived in Canada for at least 10 years after turning 18. Seniors with fewer than 40 years of residency receive a pro-rated payment.
- Income: Seniors with annual incomes below $20,000 (single) or $40,000 (couples) qualify for GIS, increasing their total OAS payment.
Payment
The new maximum OAS payment of $1,615 includes both the basic OAS pension and GIS for eligible low-income seniors. Payments are issued monthly, with the first increase scheduled for February 27, 2025.
| Payment Component | Amount (Monthly) |
|---|---|
| Basic OAS Pension | Varies by residency |
| GIS | Income-based |
| Total Maximum | $1,615 |
Seniors with higher incomes may receive only the basic OAS pension, while those with lower incomes benefit from the additional GIS.
Ensure
To ensure you receive the full OAS payment:
- Verify your eligibility through Service Canada.
- Keep your income and address information updated with Service Canada.
- Apply for GIS if your income qualifies, ensuring you receive the maximum benefit.
OAS payments are considered taxable income, and high-income seniors may face a clawback if their income exceeds set thresholds, starting at $81,761 for singles in 2025.
Plan
The OAS payment boost is a significant financial relief for many Canadian seniors. Proper financial planning, budgeting, and ensuring up-to-date records with Service Canada can help you make the most of this increase and maintain financial stability during retirement.
FAQs
Who is eligible for the $1,615 OAS payment?
Canadian seniors aged 65+ who meet residency and income requirements.
When will the OAS payment increase take effect?
The payment boost will begin in February 2025.
What is GIS in OAS payments?
GIS is an additional benefit for low-income seniors, included in OAS payments.
Are OAS payments taxable?
Yes, OAS payments are taxable income and may be subject to clawback for high earners.
How can I apply for OAS and GIS?
Apply through Service Canada online, by phone, or in person with required documents.
