OAS Benefit Increase – $727 and $800 Payments Coming in July 2025

In July 2025, Canadian seniors will receive a much-needed increase in their Old Age Security (OAS) benefits. Those aged 65 to 74 will now receive $727.67 monthly, while seniors aged 75 and older will see their payments rise to $800.44. This change reflects the government’s ongoing efforts to keep pace with rising living costs and better support the aging population.

Whether you’re a retiree trying to understand what this means for your budget or a financial advisor assisting clients, this article breaks down everything from payment dates and eligibility to how these increases can affect your financial future.

Increase

The OAS benefit is increasing starting July 2025. Here’s a quick snapshot of the changes and key details:

These updated amounts offer seniors greater financial stability and reflect the government’s response to inflation and the rising cost of living.

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Overview

Old Age Security (OAS) is one of Canada’s key income programs for seniors. Unlike the CPP, which is based on work contributions, OAS is funded by tax revenues and available to anyone who meets the age and residency requirements.

Key features include:

• It’s a universal benefit
• It adjusts quarterly based on inflation (CPI)
• It’s available to Canadian residents or legal citizens who meet the criteria

Even if you never worked or contributed to CPP, you can still qualify for OAS if you lived in Canada long enough.

Payments

The OAS increases scheduled for July 2025 will help seniors cope with rising expenses. Here’s a closer look at the updated benefit amounts:

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• Age 65 to 74: $727.67 per month
• Age 75 and over: $800.44 per month

These increases are part of routine adjustments tied to inflation. The goal is to help ensure that retirees can maintain their standard of living.

Eligibility

To qualify for OAS benefits, you need to meet a few key criteria:

Age Requirement
You must be at least 65 years old.

Residency Requirement
You need to have lived in Canada for at least 10 years after turning 18 to receive a partial benefit. For full benefits, 40 years of Canadian residency after age 18 is required.

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If Living Outside Canada
You must have lived in Canada for at least 20 years after turning 18 to be eligible.

Income Thresholds
OAS is subject to an income recovery tax (clawback) for high-income earners.

• The clawback begins at $90,997 net world income (2024)
• Higher earners will see reduced OAS amounts or repay some of it at tax time

Schedule

Here’s when you can expect OAS payments throughout 2025:

Deposit

Most seniors receive payments through direct deposit, which is faster and more secure. Paper cheques are still available but may take longer to arrive.

Application

In many cases, seniors are automatically enrolled when they turn 65. However, if you’re not enrolled automatically, here’s how to apply:

1. Online: Through your My Service Canada Account
2. By Mail: Fill out the paper application and mail it
3. In Person: Visit a Service Canada Centre

You’ll need your SIN, banking info for direct deposit, and documents confirming your residency.

GIS

The Guaranteed Income Supplement (GIS) provides extra support for low-income seniors who already receive OAS. This benefit can add hundreds to your monthly income depending on your situation.

Example:
A single senior earning less than $22,056 annually could receive up to $1,086.88 per month in GIS.

Clawback

If your income exceeds the annual threshold, your OAS will be reduced:

• For 2024, the recovery threshold starts at $90,997
• For seniors aged 75+, the OAS begins to reduce above $154,196

It’s important to consider this in your retirement planning to avoid surprises during tax season.

Deferral

You don’t have to take OAS right at 65. You can defer it up to age 70 to increase the monthly amount.

How much more?
You get a 0.6% increase for every month you delay. That’s a 36% bump if you wait until age 70.

Why defer?
If you’re still working or don’t need the money yet, deferring could lead to a higher lifetime payout, especially if you live into your 80s or beyond.

Taking advantage of the 2025 OAS benefit increase could help offset rising costs and improve your financial security. Be sure you’re enrolled, check if you qualify for GIS, and consider your income situation when planning your retirement. Whether you’re already receiving payments or just turning 65, staying informed is the best way to make the most of your senior benefits.

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