What Seniors Need to Know About OAS Payment Changes in 2025

The Old Age Security (OAS) program is a key way to help older adults in Canada with their money needs. Payments are adjusted now and then to keep up with rising living costs, ensuring seniors receive the assistance they require. Here’s what you need to know about the OAS updates happening in January 2025 and afterward.

Old Age Security: How It Works

OAS is a pension from the government for Canadians who are 65 or older. The money you get depends on:

  • How old you are
  • How many years you lived in Canada after turning 18
  • Your yearly income after taxes

The payments you receive are taxed, and if you earn more than a specific amount, you might have to pay back some of it. In 2023, this amount was $90,997.

What’s Happening in 2025?

No Payment Increase from January to March 2025:

There will be no increase in OAS payments from January to March 2025. However, payments went up by 2.0% over the last year because of changes in the Consumer Price Index (CPI) from January 2024 to January 2025.

Summary of the Adjustment for October to December 2024:

For the last three months of 2024, payments rose by 1.3%. This means the total increase for the year from October 2023 to October 2024 is 2.8%.

January 2025 Payment Details:

The final payment amounts for January will be available at the end of December 2024. Seniors are encouraged to check for updates to find out their exact payment amounts.

Extra Money for Seniors Aged 75 and Up

Beginning in July 2022, seniors aged 75 and older will receive an additional 10% added to their Old Age Security payments.

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

Extra OAS Benefits

Besides the OAS pension, some people can get other help:

Guaranteed Income Supplement (GIS)

This is a payment for seniors who are 65 or older and have low income.

  • Maximum payment for single people: $1,086.88 per month

Allowance

This is for people aged 60 to 64 who have a low-income spouse or partner who gets GIS and OAS.

  • Maximum payment: $1,381.90 per month

Allowance for the Survivor

This is for surviving spouses or partners aged 60 to 64 who have low income.

  • Maximum payment: $1,647.34 per month

How OAS Payments Are Calculated

OAS payments are checked every three months: in January, April, July, and October. The changes in these payments depend on the Consumer Price Index (CPI). This helps keep payments in line with inflation and the cost of living. This system helps seniors keep their buying power as prices go up.

Who Can Get Partial OAS Pensions

If you lived in Canada for at least 10 years but less than 40 years after you turned 18, you might qualify for a partial OAS pension. You can reach out to Service Canada or use the OAS Estimator Tool to find out how much you could get.

Getting Ready for 2025

There won’t be a rise in OAS payments for the first part of 2025, but the yearly changes from the last year have helped older adults manage higher prices. Keep an eye out for news about changes coming in January 2025, which will be shared in December 2024.

If you need help, reach out to Service Canada or visit the Old Age Security Program website.

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