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Canada’s Old Age Security (OAS) program is a vital financial support system for seniors, providing essential monthly payments to help meet living costs.
In 2025, a proposed one-time increase of $2,350 for select seniors is making waves, offering potential relief to many in need.
Here’s everything you need to know about this increase, who qualifies, and the expected payment dates.
What is OAS?
OAS is a monthly government pension available to seniors aged 65 or older. It’s funded through general tax revenue and isn’t dependent on previous employment history.
To qualify for full benefits, a senior must have lived in Canada for at least 40 years; those who have lived for at least 10 years are eligible for partial benefits.
The OAS program plays a crucial role in reducing senior poverty, offering financial stability for those without large savings or workplace pensions.
The average Old Age Security payment in 2025 is $727.67 for seniors aged 65-74, and $800.44 for those 75 and older. These amounts are adjusted quarterly for inflation.
The Proposed $2,350 OAS Increase in 2025
In mid-2025, seniors who qualify could receive an additional one-time payment of $2,350. This increase is aimed at helping seniors cope with rising costs of living, particularly inflation and higher healthcare expenses.
While this payment is not yet confirmed, it follows the government’s history of offering relief to seniors in difficult financial times, such as previous lump-sum payments during inflation spikes.
Regular OAS Payments in 2025
For 2025, the standard monthly Old Age Security payments are as follows:
| Age Group | Monthly OAS Payment (Max) |
|---|---|
| 65–74 years | $727.67 |
| 75+ years | $800.44 |
These figures are adjusted quarterly to match inflation. Seniors aged 75 and older receive a 10% increase in their Old Age Security payments, a measure introduced in 2022.
Who Qualifies for the $2,350 Increase?
To qualify for the $2,350 increase (if approved), seniors must meet the following criteria:
- Age: Must be 65 or older in 2025.
- Residency: Must be a Canadian citizen or permanent resident.
- Income: Must meet the Old Age Security clawback income thresholds.
2025 Income Thresholds for OAS Clawback:
| Age Group | Max Annual Income Before Clawback |
|---|---|
| 65–74 years | $148,451 |
| 75+ years | $154,196 |
If your income exceeds these thresholds, the Old Age Security payments will be reduced due to the recovery tax, but you will still receive a partial benefit.
Even Canadians who live abroad may qualify, as long as they’ve met the minimum residency or treaty requirements. Taxes may be withheld for those living outside Canada.
How to Apply for OAS
Not receiving Old Age Security yet? Here’s how to apply:
- Check Eligibility: Ensure you meet age, residency, and income criteria.
- Collect Documents: You will need your Social Insurance Number (SIN), proof of Canadian status, and banking details.
- Apply Online or by Mail: You can apply through your My Service Canada Account or by mailing a paper application.
- Track Your Status: Monitor your application status online or call Service Canada for updates.
It’s important to apply early to avoid delays and ensure that your application is processed before payments begin.
OAS Payment Dates in 2025
Regular Old Age Security payments are made on the third-last business day of each month. In 2025, the scheduled dates are:
| Month | OAS Payment Date |
|---|---|
| April | April 29, 2025 |
| May | May 27, 2025 |
| June | June 28, 2025 |
If the $2,350 increase is approved, it will be a separate mid-year payment.
How to Maximize OAS Benefits
To get the most from your OAS payments, consider the following strategies:
- Defer Your OAS: You can delay Old Age Security payments for up to 5 years after turning 65. For every month you wait, you get a 0.6% increase in your monthly payments, which adds up to a 36% increase by age 70. This is ideal for seniors with other income sources.
- Minimize OAS Clawbacks: The Old Age Security recovery tax applies once your income exceeds $86,912 in 2025. To avoid reductions:
- Use a Tax-Free Savings Account (TFSA) for withdrawals.
- Withdraw from RRSPs during low-income years.
- Split pension income with a spouse.
- Apply for Extra Assistance: If your income is low, you may qualify for the Guaranteed Income Supplement (GIS) in addition to Old Age Security. This is automatically assessed when you apply for OAS.
Also, check for provincial benefits, such as seniors’ drug plans or housing support, to help stretch your Old Age Security payments.
The proposed $2,350 OAS increase could offer significant relief to seniors in 2025, helping them cope with rising living costs. By understanding the eligibility criteria, application process, and payment dates, seniors can maximize their benefits and improve their financial security in retirement.
FAQs
When will the $2,350 OAS increase be paid?
If approved, the $2,350 increase is expected to be paid mid-2025.
How can I maximize my OAS payments?
You can maximize your payments by deferring them and managing your income to avoid clawbacks.
Can I apply for OAS if I live abroad?
Yes, as long as you meet the residency requirements and have lived in Canada for the required number of years.