The Old Age Security (OAS) program is a vital financial support system for seniors in Canada, designed to help them manage living expenses during retirement.
With the rising cost of living, the Canadian government has announced adjustments to OAS payments for 2025, ensuring seniors receive increased financial support.
From the published article of Money Sense, let us find out the OAS payment schedule, eligibility, and ways to maximize benefits, so you can make the most of this program.
What Is the Old Age Security (OAS) Program?
The OAS program provides monthly payments to eligible seniors in Canada. It is not based on contributions, like the Canada Pension Plan (CPP), but rather on residency. The amount you receive depends on your age, income, and how long you’ve lived in Canada after turning 18.
In 2025, seniors could receive up to $3,800 annually from OAS, with the amounts adjusted for inflation. Those aged 75 and older will receive a 10% increase in their monthly payment, further helping them cover rising costs.
How Much Can You Receive?
The monthly OAS payments for 2025 are categorized by age and income:
- Seniors aged 65 to 74:
- Maximum monthly payment: $727.67
- Full payment eligibility: Annual income below $148,451 (2024 threshold).
- Payments reduce for incomes above this limit.
- Seniors aged 75 and older:
- Maximum monthly payment: $800.44 (including the 10% increase).
- Full payment eligibility: Annual income below $154,196 (2024 threshold).
Payment Dates for 2025
OAS payments are usually issued during the last week of each month. Here is the 2025 payment schedule to help you plan your finances:
- January: January 29, 2025
- February: February 26, 2025
- March: March 27, 2025
- April: April 28, 2025
- May: May 28, 2025
- June: June 26, 2025
- July: July 29, 2025
- August: August 27, 2025
- September: September 25, 2025
- October: October 29, 2025
- November: November 26, 2025
Note: If you opt for direct deposit, payments will arrive in your account on the scheduled dates. For those receiving cheques, delivery times may vary depending on postal services.
Eligibility for OAS Payments
To qualify for OAS payments, you must meet the following requirements:
- Age: You must be 65 or older.
- Residency:
- For partial benefits: At least 10 years of residency in Canada after turning 18.
- For full benefits: 40 years of residency in Canada after turning 18.
- Income Limits: Payments are reduced for higher-income earners due to the OAS Recovery Tax (commonly called the clawback).
For example, if your net income exceeds $86,912 (2024 threshold), the clawback will apply, reducing your OAS payment.
Additional Benefits for Low-Income Seniors
If you’re a low-income senior, you might qualify for the Guaranteed Income Supplement (GIS), which provides extra financial assistance. GIS benefits are calculated based on your income and can be added to your monthly OAS payments.
How to Postpone OAS Payments
If you don’t need OAS payments immediately at age 65, you can delay receiving them for up to 5 years. For every month you delay, your payment will increase by 0.6%, resulting in a 36% higher benefit at age 70. This option is ideal if you have other sources of income and want to maximize your future payments.
How to Ensure You Receive OAS Payments
Follow these steps to ensure you receive your OAS payments on time:
- Confirm Enrollment: Use the My Service Canada Account portal to verify your OAS registration.
- Update Information: Keep your address, bank details, and marital status updated with Service Canada.
- File Taxes on Time: Timely tax filing ensures accurate calculations for GIS or clawback adjustments.
- Track Payment Dates: Mark payment dates on your calendar to stay organized.
- Contact Service Canada: For any issues or questions, reach out to Service Canada directly.
Why Are OAS Payments Increasing in 2025?
The government has increased OAS payments to help seniors cope with rising inflation and living expenses. This adjustment ensures seniors can manage essential costs like housing, groceries, and healthcare without financial strain.
Final Thoughts
The updated OAS payment structure for 2025 reflects the government’s commitment to supporting seniors in Canada. By understanding the payment schedule, eligibility requirements, and options to maximize benefits, you can make the most of this program and secure financial stability during retirement.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Filza specializes in simplifying financial topics for everyday readers. Whether breaking down Canada’s tax guides or U.S. benefits like SNAP and VA Disability, Filza’s relatable writing style ensures readers feel confident and informed. Follow her insights on LinkedIn or reach out via email at shewrites.health@gmail.com.
