Worried about rising costs in retirement? Canada’s Old Age Security (OAS) program is here to support seniors with monthly payments — and 2025 may bring changes you need to know.
OAS Increase in 2025 Overview
| Feature | Details |
|---|---|
| Program Name | Old Age Security (OAS) |
| Managed By | Service Canada |
| Benefit Type | Monthly Pension |
| Age of Eligibility | 65 years and above |
| Benefit Amount (65–74) | Up to $727.67 per month |
| Benefit Amount (75+) | Up to $800.44 per month |
| Payment Frequency | Monthly |
| May Payment Date | 28 May 2025 |
| Taxable | Yes |
| Clawback Threshold (Estimate) | Starts at ~$93,000+ (2025) |
| Country | Canada |
What Is Old Age Security (OAS)?
Old Age Security is a monthly government pension for Canadian residents aged 65 and older. It’s designed to help seniors manage living expenses during retirement. The program is administered by Service Canada, and the amount you receive depends on your age, residency, and income level.
What’s New in 2025?
While there’s buzz around a potential $3,900 annual increase, no official confirmation has been made. This figure may reflect a combination of OAS, CPP (Canada Pension Plan), and GIS (Guaranteed Income Supplement) payments — not a stand-alone OAS increase.
So far, the maximum monthly OAS remains:
- $727.67 for seniors aged 65 to 74
- $800.44 for seniors aged 75 and older
These rates are reviewed quarterly and adjusted based on inflation.
OAS Eligibility Criteria
To qualify for OAS in 2025, you must:
- Be 65 years or older
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years after age 18
Even non-Canadians who meet the residency rule and other conditions may be eligible.
Note: If you receive CPP, you may be automatically enrolled. If not, apply online or through Service Canada.
How Is OAS Payment Calculated?
OAS is taxable income, and how much you receive depends on:
- Your age
- Your total net annual income
- How long you’ve lived in Canada after age 18
If your income exceeds a certain threshold (estimated ~$93,000 in 2025), your OAS may be reduced by 15% of the excess under the OAS clawback rule.
Sample Calculation – Understanding the $3,900 Claim
There’s confusion around the $3,900 amount. This total likely refers to a combination of:
- CPP pension
- OAS pension
- GIS (if eligible)
For example, a senior in Ontario receiving:
- CPP: $1,433/month
- OAS: $615/month
- GIS: $923/month
Their total monthly income = $2,971
Annual total = Over $35,000, far beyond $3,900 — proving $3,900 is not a new OAS-only amount but possibly a general average or minimum estimate.
OAS Payment Dates in 2025
Here’s the complete monthly OAS payment schedule:
| Month | Payment Date |
|---|---|
| January | 29 January 2025 |
| February | 26 February 2025 |
| March | 27 March 2025 |
| April | 28 April 2025 |
| May | 28 May 2025 |
| June | 26 June 2025 |
| July | 29 July 2025 |
| August | 27 August 2025 |
| September | 25 September 2025 |
| October | 29 October 2025 |
| November | 26 November 2025 |
| December | 22 December 2025 |
Payments are issued via direct deposit or mailed cheque.
How to Maximize Your Retirement Benefits
Here are practical tips to boost your retirement income:
- Delay OAS: If you wait until age 70, your OAS increases by 0.6% per month, up to 36% more.
- Use TFSA Savings: Earnings from a TFSA do not count as income and won’t affect OAS eligibility.
- Stay Below Clawback Range: Keep taxable income under the clawback limit to receive the full amount.
- Downsize Smartly: Selling a high-value home and moving to a smaller one can free up cash without affecting OAS.
- Get Professional Advice: A certified financial planner can guide you in optimizing both OAS and CPP.
Frequently Asked Questions (FAQs)
Yes, OAS is considered taxable income in Canada.
Some people are auto-enrolled. If not, you must apply through Service Canada.
OAS is based on residency, while CPP depends on your work contributions.
Yes, but only if you lived in Canada for at least 20 years after age 18.
You can receive up to 36% more if you delay taking it until age 70.
The Old Age Security (OAS) program remains a vital part of Canada’s retirement income system. While no standalone $3,900 increase is officially confirmed, combining OAS with other benefits like CPP and GIS can offer strong financial support.
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If you’re turning 65 soon or planning for retirement, check your OAS eligibility today and consult a financial advisor to make the most of your benefits in 2025 and beyond.