The Old Age Security (OAS) program plays a crucial role in providing monthly financial support to seniors across Canada. And in 2025, a potential one-time increase of $2,350 is making headlines. For many seniors living on a fixed income, this could offer some much-needed relief.
If you’re wondering what this proposed boost means, who qualifies, and how to make the most of your benefits, here’s a simple guide to help you navigate everything.
Overview
OAS is one of Canada’s core retirement programs. Unlike the Canada Pension Plan (CPP), which is based on employment history, OAS is available to seniors who meet certain age and residency requirements. In 2025, seniors could see an extra $2,350 if the proposal goes through.
Canada $2,350 OAS Increase
| Details | Information |
|---|---|
| Program Name | Old Age Security (OAS) |
| Proposed Payment Increase | Up to $2,350 (one-time) |
| Eligibility | Age 65+, meeting residency and income criteria |
| Monthly Payments (2025) | $727.67 (65–74 years), $800.44 (75+ years) |
| Official Info Source | Canada.ca |
What is OAS?
OAS is a monthly government pension for seniors aged 65 or older. Funded through general tax revenue, it’s available to those who’ve lived in Canada for at least 10 years (with partial benefits) or 40 years (for full benefits).
OAS helps cover everyday expenses in retirement, especially for seniors without workplace pensions or large savings. It also reduces poverty and allows for a more stable, independent retirement.
$2,350 Increase
The proposed one-time payment of $2,350 aims to help seniors handle inflation, rising food prices, and higher healthcare costs. Though not officially confirmed, this initiative follows previous government efforts to provide lump-sum relief during financially difficult times.
If approved, the $2,350 could land mid-2025 and would be distributed to qualifying seniors, giving them an extra financial cushion.
Regular OAS Payments in 2025
Even without the extra payment, monthly OAS continues as usual in 2025:
| Age Group | Monthly OAS Payment (Max) |
|---|---|
| 65–74 years | $727.67 |
| 75+ years | $800.44 |
These amounts are adjusted every quarter for inflation. Seniors 75 and older get a 10% boost, a measure introduced in 2022.
Who Qualifies for the Increase?
To get the $2,350 increase (if it’s approved), you’ll need to meet the following:
- Age: Must be 65 or older in 2025
- Residency: Must be a Canadian citizen or legal resident
- Income: Must be under the OAS clawback thresholds
2025 Income Thresholds
| Age Group | Max Annual Income Before Clawback |
|---|---|
| 65–74 | $148,451 |
| 75+ | $154,196 |
If your income is higher, you may still get OAS—but expect a partial reduction through the recovery tax.
Even Canadians living abroad can qualify, as long as they’ve met the minimum residency or treaty requirements. Note that taxes might be withheld if you live outside Canada.
Applying for OAS
Not receiving OAS yet? Here’s how to apply:
- Check Eligibility: Make sure you’ve met the age, residency, and income criteria
- Collect Documents: You’ll need your SIN, proof of status, and banking details
- Apply Online or by Mail: Use your My Service Canada Account or mail in a paper application
- Track Status: Monitor your application online or call Service Canada for updates
Apply early to avoid delays. Many seniors don’t realize their application must be processed before payments begin.
OAS Payment Dates
Regular OAS payments arrive monthly, usually on the third-last business day. Expected dates include:
| Month | OAS Payment Date |
|---|---|
| April | April 29, 2025 |
| May | May 27, 2025 |
| June | June 28, 2025 |
If the $2,350 increase is approved, look out for a separate mid-year payment.
How to Maximize OAS Benefits
Want to get the most from your OAS payments? Try these strategies:
1. Defer Your Payments
You can delay OAS for up to 5 years after turning 65. Every month you wait adds 0.6%—that’s a 36% increase by age 70. Ideal for seniors with other income sources who want bigger payments later.
2. Minimize Clawbacks
The OAS recovery tax kicks in once your income hits $86,912 in 2025. To avoid losing part of your benefit:
- Use a TFSA (withdrawals don’t count as income)
- Withdraw from RRSPs in low-income years
- Split pension income with a lower-income spouse
Smart tax planning helps you keep more of your OAS.
3. Apply for Extra Help
If your income is low, you may qualify for the Guaranteed Income Supplement (GIS)—extra money on top of OAS. It’s automatically assessed when you apply.
Also, check provincial benefits like seniors’ drug plans, housing support, or heating rebates. These can stretch your OAS even further.
FAQs
Will all seniors get the $2,350 increase?
Only those who meet age, residency, and income criteria will qualify.
When will the OAS increase be paid?
If approved, the payment is expected mid-2025.
What is the current OAS monthly amount?
$727.67 for 65–74 and $800.44 for 75+ in 2025.
Can I get OAS while living abroad?
Yes, if residency rules are met. Withholding tax may apply.
How can I avoid OAS clawbacks?
Lower your taxable income using TFSAs and income splitting.
