There’s a lot of excitement around the news of a $1,850 Old Age Security (OAS) payment increase in 2025. Many Canadian seniors are wondering if they’ll receive a lump sum, when the money will arrive, and how they can qualify.
While the headline sounds generous, the actual boost is part of a gradual increase in OAS payments, not a one-time windfall.
This article explains the real story behind the OAS changes, who qualifies, how much you can expect, and what actions you need to take.
What Is the $1,850 OAS Boost?
The $1,850 figure does not refer to a one-time bonus. It reflects the total annual increase in OAS payments for some seniors, based on age and recent quarterly adjustments.
The government increases OAS amounts every quarter to reflect rising inflation. These increases are especially helpful for retirees trying to cope with the high cost of living in 2025.
When calculated over 12 months, the enhanced payments could add up to as much as $1,850 more per year for those aged 75 and older.
Who Is Eligible for the OAS Increase?
To receive the OAS pension, individuals must meet the following eligibility criteria:
- Be 65 years or older
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years after age 18 (20 years if living outside Canada)
There are two tiers of payment based on age:
- Ages 65 to 74 receive the standard OAS rate.
- Ages 75 and above receive a 10% permanent increase on top of the base OAS amount.
This boost was introduced to better support older seniors, whose savings may be stretched thinner due to longer retirements and increasing medical costs.
Updated OAS Payment Amounts for 2025
Here’s a breakdown of the latest OAS amounts, reflecting the quarterly increase effective from July 2025:
| Age Group | Monthly OAS Payment | Total Annual Payment |
|---|---|---|
| 65 to 74 years | $727.67 | $8,732.04 |
| 75 years and older | $800.44 | $9,605.28 |
With inflation adjustments applied throughout the year, some recipients could see a total increase of up to $1,850 annually, especially when combined with the Guaranteed Income Supplement (GIS) or other federal credits.
When Will You Get the New OAS Rate?
OAS payments are issued on a monthly basis, and payment dates are generally consistent. The next scheduled payment reflecting the increased rate is expected at the end of July 2025.
Following that, seniors will continue to receive the adjusted amounts monthly for the remainder of the year, with further potential increases based on the next Consumer Price Index (CPI) reviews in October and January.
Income Thresholds and Clawback Rules
OAS is a universal benefit, but high-income seniors may be subject to repayment through the OAS Recovery Tax, also known as the clawback. Here’s how it works:
- The clawback begins if your annual net income exceeds $86,912.
- For every dollar above this threshold, 15 cents is deducted from your OAS payment.
- Full repayment occurs if your income exceeds $142,609 (for ages 65–74) or $148,179 (for 75+).
If you’re nearing these income thresholds, tax planning becomes essential to preserve your OAS benefit.
What About the Guaranteed Income Supplement (GIS)?
In addition to OAS, low-income seniors may be eligible for GIS, a non-taxable monthly benefit that supplements retirement income.
GIS Eligibility:
- Single seniors with income less than approximately $21,624 per year
- Married/common-law couples may still qualify depending on combined income levels and if one or both partners receive OAS
GIS is automatically reviewed and adjusted each year based on your income tax return, so make sure your tax filings are accurate and up to date.
What You Should Do Now
Here’s how to make sure you benefit fully from the OAS increase:
1. Check Your Eligibility
Confirm your age, residency, and living history to see if you qualify. Most seniors are automatically enrolled at 65, but you can defer your OAS up to age 70 to receive a higher monthly amount.
2. Set Up a My Service Canada Account
Track your payment history, update personal information, and review benefit adjustments easily online.
3. Manage Your Income Wisely
If you’re close to the clawback threshold, consult with a financial advisor to consider income-splitting, TFSA use, or other tax strategies.
4. Apply for GIS
If you have a low annual income, applying for GIS can significantly increase your monthly pension payments.
The so-called $1,850 OAS boost isn’t a bonus cheque—but for seniors aged 75 and over, it does represent a significant increase in retirement income over the course of the year. With inflation adjustments continuing, these payments are crucial to helping retirees manage expenses in 2025.
To make the most of these benefits, stay informed, manage your income wisely, and apply for additional support like GIS if you qualify. OAS is more than a pension—it’s a foundation of financial security for millions of Canadians.
FAQs
Will I receive $1,850 in one payment?
No. The $1,850 refers to the total estimated annual increase in OAS payments for those aged 75 and over, not a one-time lump sum.
Can I defer OAS to get higher payments?
Yes. You can defer your OAS up to age 70. For each month you delay past 65, your payment increases by 0.6%, up to a maximum of 36% more at age 70.
Do I have to reapply every year?
No. Once you’re approved, OAS payments are automatic. However, if you’re eligible for GIS, your income must be reassessed each year through your tax return.