How Much Will OAS Payments Increase in January 2025?

Old Age Security (OAS) benefits help seniors in Canada by giving them important financial support. The amount they receive is changed from time to time to match the rising cost of living. Here’s a simple guide to what will change in January 2025, based on updates linked to the Consumer Price Index (CPI).

Learning About Your OAS Pension

The Old Age Security pension is for Canadians who are 65 years old or older. How much you receive depends on:

  • Your age (65 or older)
  • How many years you have lived in Canada after turning 18
  • How much money you earn

OAS payments are taxable, which means you may have to pay a recovery tax if your yearly income is over $90,997 in 2023.

Updates on OAS for 2025

  1. No Increase from January to March 2025:
    • Even though payments went up by 2.0% from January 2024 to January 2025, there will be no extra increase in OAS benefits for the January to March 2025 period because of current CPI data.
  2. Latest Payment Change (October to December 2024):
    • Payments went up by 1.3% this quarter, which adds up to a total increase of 2.8% from October 2023 to October 2024.
  3. Announcement of January 2025 Payments:
    • The exact payment amounts for January will be revealed at the end of December 2024, so seniors should remember to look for updates.

Extra Support for Older Seniors: More OAS for Those 75 and Up

Starting in July 2022, seniors who are 75 years old and older get a 10% permanent boost in their OAS pensions.

  1. Monthly Payment Amounts (2024):
    • Ages 65 to 74: Up to $727.67
    • Ages 75 and older: Up to $800.44

Extra OAS Benefits for Seniors

Besides the OAS pension, some people may also get:

Guaranteed Income Supplement (GIS):

  • This is for seniors aged 65 and older who have low income. The amount you get depends on if you are single or married and your income.
  • The most you can receive if you are single is $1,086.88 each month.

Allowance:

  • This is for people aged 60 to 64 who have a low-income partner that gets GIS and OAS benefits.
  • The highest amount you can receive is $1,381.90 each month.

Allowance for the Survivor:

  • This is for surviving spouses or partners aged 60 to 64 who have low income.
  • The most you can receive is $1,647.34 each month.

How OAS Payments Are Calculated

OAS payments are checked every three months—in January, April, July, and October—to make sure they match changes in the cost of living. This is based on the Consumer Price Index (CPI). Seniors will see their payments change automatically to keep up with inflation, helping them maintain their buying power as prices go up.

Note: Partial OAS Pensions

If you have lived in Canada for at least 10 years but less than 40 years after you turned 18, you may be able to receive a partial OAS pension. To find out how much you might get, you can use the OAS Estimator.

What to Expect in 2025

There won’t be an increase in OAS payments at the start of 2025, but changes made last year will keep benefits in line with rising prices. Older adults are advised to keep up with quarterly updates and check that they qualify for extra help like GIS, Allowance, or Allowance for the Survivor.

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