With rising costs of living continuing to impact retirees, the Canadian government has confirmed a significant Old Age Security (OAS) increase for 2025—adding up to $2,350 in extra annual payments for eligible seniors.
This substantial boost is aimed at helping those over the age of 65 keep pace with inflation and maintain financial stability throughout retirement.
Here’s everything seniors need to know about the OAS increase, who qualifies, how it’s calculated, and when payments will begin.
What Is the 2025 OAS Boost?
Beginning in July 2025, OAS recipients will see their benefits rise thanks to quarterly inflation-linked adjustments. The increase will vary depending on age group and benefit category, but for some seniors, it can total up to $2,350 annually.
The OAS boost reflects a combination of the standard benefit and any applicable enhancements, including:
- The 10% permanent increase for seniors aged 75 and above
- Regular quarterly indexation tied to the Consumer Price Index (CPI)
- Adjusted maximum payment thresholds based on income eligibility
2025 OAS Payment Breakdown
Here’s a quick snapshot of what eligible seniors can expect in 2025:
| Category | Monthly Payment (2025) | 4-Week Equivalent | Annual Estimate |
|---|---|---|---|
| Seniors aged 65–74 | $727.67 | $1,455.34 | $8,732 |
| Seniors aged 75+ (includes 10%) | $800.44 | $1,600.88 | $9,605 |
| Additional OAS boost for 2025 | — | — | Up to $2,350 |
The extra boost depends on inflation trends, indexing, and other senior benefits like GIS (Guaranteed Income Supplement).
Who Is Eligible for the $2,350 Boost?
You may qualify for the OAS increase in 2025 if:
- You are 65 or older
- You have lived in Canada for at least 10 years since age 18
- You are a Canadian citizen or legal resident
- You meet the income eligibility threshold (earnings below the OAS clawback level)
- You are already receiving OAS or are eligible to apply by 2025
Partial OAS payments may still apply for individuals with 10–39 years of Canadian residency after turning 18.
When Will the Boost Be Paid?
OAS benefits are adjusted quarterly in:
- January
- April
- July
- October
The next major increase will take effect in July 2025, and payments will be distributed based on your birth date and banking setup. Those using direct deposit will receive their payments faster than those using paper checks.
What to Know About OAS and Income Limits
While many Canadians are eligible for the full OAS amount, the clawback threshold (known as the recovery tax) can reduce your payments if your income exceeds a certain limit. In 2025, this threshold is expected to be around:
- $86,912 for standard OAS
- $142,609–$148,000+ for seniors aged 75+
Those exceeding these limits may see partial or full repayment required through taxes. It’s important to calculate your net income when assessing eligibility.
How to Apply for OAS
Most seniors are automatically enrolled at age 65, but if you’re not, you can apply by:
- Logging into your My Service Canada Account
- Filling out a paper application
- Requesting enrollment at a later date (up to age 70) to increase your monthly benefit
You’ll need to provide:
- Social Insurance Number (SIN)
- Proof of residence in Canada
- Personal identification and financial details
Delaying your OAS can earn you up to 36% more if you defer until age 70.
How to Maximize Your Retirement Income
In addition to OAS, seniors should explore:
- Guaranteed Income Supplement (GIS) – for low-income OAS recipients
- Canada Pension Plan (CPP) – can be combined with OAS
- Provincial support programs – like income top-ups, housing grants, and medical subsidies
These programs together can enhance financial security and create a reliable monthly income stream.
The $2,350 OAS boost for 2025 is a welcome relief for Canadian seniors looking to manage rising expenses. Whether you’re already receiving OAS or approaching retirement age, it’s essential to check your eligibility, ensure your documents are updated, and plan your income accordingly.
With the right planning and awareness, this boost can help secure a more comfortable and sustainable retirement for you and your loved ones.
FAQs
How much will I get from the OAS boost in 2025?
Depending on your age and benefit category, you could receive up to $2,350 extra over the course of the year through combined increases and enhancements.
Do I need to apply to get the OAS increase?
If you’re already receiving OAS, the increase is automatic. New applicants must apply through Service Canada if not automatically enrolled.
What if my income is too high?
If your annual income is above the clawback threshold, you may have to repay part or all of your OAS through the recovery tax. Managing income levels can help reduce this impact.