As individuals age, managing daily expenses becomes increasingly challenging, especially with reduced earning capacities.
To support seniors in maintaining their standard of living, the Canadian government offers the Old Age Security (OAS) program. In 2025, notable adjustments have been made to OAS payments to align with inflation and the rising cost of living.
This article provides a comprehensive overview of these changes, eligibility criteria, application processes, and additional benefits available to seniors.
Overview of OAS Payment Adjustments in 2025
The OAS program is a federal initiative designed to provide financial assistance to Canadians aged 65 and older.
To ensure that the benefits keep pace with inflation, OAS payments are reviewed quarterly—in January, April, July, and October—based on changes in the Consumer Price Index (CPI).
For the January to March 2025 quarter, the OAS benefits have remained unchanged due to a slight decrease in the CPI over the preceding three months.
However, over the past year, there has been a 2.0% increase in OAS payments, reflecting the government’s commitment to supporting seniors amidst rising living costs.
Eligibility Criteria for OAS Benefits
To qualify for OAS benefits, individuals must meet specific age and residency requirements. The eligibility criteria are as follows:
- Age Requirement: Must be at least 65 years old.
- Residency Requirements:
- For Canadian Residents: Must be a Canadian citizen or legal resident at the time of application approval and have resided in Canada for at least 10 years after the age of 18.
- For Non-Residents: Must have been a Canadian citizen or legal resident before leaving Canada and have lived in Canada for at least 20 years after turning 18.
It’s important to note that individuals who have lived in Canada for fewer than 40 years after age 18 may receive a partial OAS pension, calculated based on the number of years lived in Canada divided by 40.
Application Process for OAS Benefits
Most seniors are automatically enrolled in the OAS program. However, those who need to apply can do so up to 11 months before their 65th birthday. The application steps include:
- Online Application: Through the My Service Canada Account.
- Paper Application: By completing the Application for the Old Age Security Pension form and mailing it to Service Canada.
Applicants should ensure they have necessary documents, such as proof of legal status and residency history, to facilitate the process.
Additional Benefits: Guaranteed Income Supplement (GIS)
In addition to the OAS pension, low-income seniors may qualify for the Guaranteed Income Supplement (GIS), which provides additional financial support.
The GIS amount varies based on marital status and income levels. For the January to March 2025 quarter, the maximum monthly GIS payment for a single individual is $1,086.88. Eligibility and payment amounts are influenced by the applicant’s income and marital status.
Strategies to Maximize OAS Benefits
Seniors can enhance their OAS benefits through the following strategies:
- Deferring OAS Payments: Delaying the start of OAS payments beyond age 65 can increase the monthly benefit by 0.6% for each month deferred, up to a maximum of 36% at age 70.
- Managing Income Levels: Keeping annual income below the OAS clawback threshold ($86,912 for 2023) can prevent reductions in OAS benefits.
- Exploring Additional Benefits: Low-income seniors should investigate eligibility for the GIS and other provincial programs designed to support seniors.
The 2025 adjustments to the Old Age Security program underscore the Canadian government’s dedication to supporting seniors in managing their daily expenses amidst rising living costs.
By understanding the eligibility criteria, application processes, and strategies to maximize benefits, seniors can ensure they receive the financial support necessary to maintain a comfortable standard of living.
FAQs
How often are OAS payments adjusted for inflation?
OAS payments are reviewed quarterly—in January, April, July, and October—to reflect changes in the Consumer Price Index (CPI).
Can I receive OAS benefits if I live outside Canada?
Yes, if you were a Canadian citizen or legal resident before leaving Canada and have lived in Canada for at least 20 years after age 18, you can receive OAS payments while residing abroad.
Is the OAS pension considered taxable income?
Yes, the OAS pension is considered taxable income and may be subject to a recovery tax if your annual net income exceeds the specified threshold.
Oas and gis is not enough to live on 1740 amonth the goverment needs to increase it to 500 dollars extra monthly most of this money is to pay rent not much money left for food or basic needs M
I applied for OAS in 2023. I was in my 9th year residency now…less than 10 years. I was informed by service Canada that I am qualified to apply because I worked in my country for 14 years and I had not applied for retirement pension since I reached 65 because I’m here in Canada. I am now 71 yrs old. My papers are still on hold in service Canada. Please help me..
I qualified for for GIS but I didn’t get it I don’t understand
I have lost my GIS because I made a little bit more money than the $22,000 minimum threshold. Now I will be living on $1100 a month and my rent alone is $516 so I’m worried Are they going to raise the minimum threshold for GIS ever?