The Old Age Security (OAS) program is a cornerstone of Canada’s retirement income system. For 2025, Canadian seniors could see a one-time $2,350 increase designed to help with rising costs.
Whether you’re already receiving OAS or planning to apply soon, knowing this potential boost and how to prepare is key to making the most of your retirement income.
This guide breaks down the eligibility, payment timelines, and strategies you can use to get the most out of your OAS benefits in 2025.
Overview
Here’s a quick look at what’s being proposed:
| Details | Information |
|---|---|
| Program Name | Old Age Security (OAS) |
| Proposed Increase | One-time payment of $2,350 |
| Eligibility | Seniors aged 65+, meeting residency and income rules |
| Monthly Max (2025) | $727.67 (65–74), $800.44 (75+) |
| Official Source | Canada.ca |
While this $2,350 increase is not yet officially confirmed, it reflects the government’s recent efforts to cushion seniors from inflation and higher living expenses.
OAS
Old Age Security is a monthly pension paid to Canadians aged 65 and over. Unlike the Canada Pension Plan (CPP), it’s not based on your employment history or contributions. It’s funded by general tax revenue and based on age, residency, and income.
To receive the full amount, you need to have lived in Canada for at least 40 years after age 18. If you’ve been in Canada for at least 10 years, you may qualify for partial payments.
The goal is to provide financial security in retirement, especially for seniors without workplace pensions or significant personal savings.
Increase Matters
In late 2024, talks began about a possible one-time $2,350 top-up to OAS payments. The aim is to help seniors manage inflation-driven costs for essentials like housing, groceries, and healthcare.
For many older Canadians living on a fixed income, even small increases make a big difference. This proposed payment would offer temporary but meaningful relief, especially to low- and middle-income seniors.
OAS Payments
Here’s what you can expect each month under the current OAS structure:
| Age Group | Monthly Max OAS (2025) |
|---|---|
| 65 to 74 | $727.67 |
| 75 and older | $800.44 |
Seniors 75 and older received a 10 percent increase back in 2022, and OAS continues to adjust quarterly to match inflation. These adjustments help OAS keep pace with the cost of living.
Who’s Eligible?
To qualify for the proposed increase, you’ll need to meet these criteria:
- Be 65 or older in 2025
- Be a Canadian citizen or legal resident
- Meet income requirements (net annual income below):
- $148,451 if you’re aged 65 to 74
- $154,196 if you’re 75 or older
If your income goes above these limits, your OAS payment may be reduced through the OAS Recovery Tax, also known as the clawback.
Even Canadians living abroad may qualify if they meet residency requirements or are covered under an international social security agreement with Canada.
How to Apply
If you’re not yet receiving OAS but are approaching age 65, here’s what to do:
- Check eligibility. Make sure your age, income, and residency line up with requirements
- Gather documents. You’ll need your SIN, proof of residency, and banking info
- Apply. Submit your application online via your My Service Canada Account or by mailing a paper form
- Monitor progress. Use your account to track your application status
Applying early is essential. Delays can hold up your payments, leaving you without crucial support for months.
When to Expect
If the $2,350 one-time payment is approved, it’s likely to be issued around mid-2025.
Regular OAS payments are sent monthly, typically on the third-to-last business day of the month. Here are the early 2025 dates:
| Month | Payment Date |
|---|---|
| January | January 29, 2025 |
| February | February 27, 2025 |
| March | March 28, 2025 |
Make sure your bank details are up to date to avoid missing a payment.
How to Maximize
Whether or not the $2,350 top-up is approved, there are still ways to get the most out of your OAS benefits.
Defer Your Payments
You can delay your OAS up to age 70. For every month you defer, your payment increases by 0.6 percent. That’s a 36 percent boost if you wait until 70.
This strategy is best for people who have other income sources and want to increase their future monthly income.
Avoid the Clawback
The OAS clawback starts at $86,912 in income. To minimize it:
- Use a TFSA instead of an RRSP to generate tax-free income
- Strategically time RRSP withdrawals
- Split pension income with your spouse
Smart planning can keep your income just below the clawback threshold.
Look Into Additional Benefits
OAS alone might not be enough. Consider applying for:
- Guaranteed Income Supplement (GIS)
- Provincial and municipal support programs
These extras can provide hundreds more per month, depending on your situation.
FAQs
Who qualifies for the $2,350 OAS increase?
Seniors aged 65+ with income under the OAS clawback limits in 2025.
Is the $2,350 OAS payment confirmed?
Not yet. It’s still under discussion but widely expected in 2025.
When will the OAS increase be paid?
If approved, payments are expected mid-2025.
Can I defer my OAS to increase it?
Yes, delaying up to age 70 boosts your monthly payment by 36%.
Will the OAS payment affect my taxes?
Only if your total income triggers the OAS clawback threshold.
