$2,350 OAS Boost Coming in 2025: Good news for Canadian seniors that the federal government is set to roll out a significant increase to the Old Age Security (OAS) benefit starting January 2025. This upcoming change will offer eligible recipients up to an additional $2,350 annually, helping seniors better manage the rising cost of living.
With inflation impacting the price of everyday essentials like food, housing, and healthcare, this increase is aimed at providing meaningful relief to older Canadians relying on fixed incomes.
Let’s break down what’s changing, who qualifies, and how the new payments will be distributed.
What Is the OAS Benefit?
The Old Age Security (OAS) program is one of Canada’s core retirement benefits, offering monthly financial support to residents aged 65 and over. Unlike the Canada Pension Plan (CPP), you don’t need to have worked or contributed to a pension fund to be eligible. The OAS is funded through general tax revenue and is available to most seniors who meet the residency requirements.
What’s Changing in 2025?
Starting in January 2025, the maximum OAS benefit will increase by $2,350 per year, raising the total potential annual payment to $9,870, or approximately $822.50 per month.
This is one of the largest OAS enhancements in recent years and is part of the government’s broader strategy to help older Canadians maintain financial stability and live with dignity in retirement.
No reapplication is needed if you’re already receiving OAS and meet the criteria, the increase will be applied automatically.
Who’s Eligible for the OAS Increase?
Not every senior will receive the full $2,350 increase. The boosted benefit will specifically apply to:
- Seniors aged 75 or older as of January 2025
- Canadian citizens or legal residents who have lived in Canada for at least 10 years since turning 18
- Individuals currently receiving OAS payments
It’s also important to note that your annual net income must remain below the OAS clawback threshold, which is expected to be around $90,997 in 2025. Seniors earning above this amount may see their benefits reduced or eliminated through the OAS recovery tax.
Those aged 65 to 74 will continue to receive regular OAS payments, but this specific increase only applies to the 75+ age group.
When Will the Increased Payments Begin?
The enhanced OAS benefit will begin with the January 29, 2025 payment and continue monthly thereafter. Here are the first few confirmed OAS payment dates for 2025:
- January 29
- February 26
- March 26
- April 29
Payments are typically made via direct deposit. If you haven’t set that up yet, it’s highly recommended to do so through your My Service Canada Account to avoid delays or lost cheques.
How to Apply or Update Your Information
If you’re turning 75 in 2025 and haven’t yet applied for OAS, now’s the time to get started. You can apply online through the Government of Canada website or download a paper application.
Make sure your personal details and banking information are current, as outdated info could delay your payments.
For full instructions, eligibility details, and to start your application, visit the official OAS page on the Government of Canada website.
Final Thoughts
This $2,350 OAS boost is a welcome move for Canadian seniors facing increased financial pressure. Whether you’re already receiving OAS or preparing to apply, staying informed and updated ensures you don’t miss out on the benefits you’ve earned.
If you or a loved one is approaching age 75, take the time now to review your eligibility, set up direct deposit, and ensure all your information is up to date with Service Canada.
FAQs
1. How much will OAS increase in 2025?
Eligible seniors aged 75+ will receive up to an extra $2,350 annually starting January 2025.
2. Who qualifies for the OAS increase in 2025?
Seniors aged 75 or older with at least 10 years of Canadian residency and income below the clawback threshold.
3. When will the increased OAS payments begin?
The first enhanced OAS payment is scheduled for January 29, 2025.
4. Do I need to reapply to get the OAS increase?
No, eligible recipients will receive the increased amount automatically.
5. How do I set up direct deposit for OAS?
You can register for direct deposit through your My Service Canada Account online.