The government tries to help seniors keep up with their purchasing power during the increasing costs of living. Because of this, the Canadian government will make adjustments to the old age security benefits. The benefits of old age security will increase for senior citizens in Canada starting from July 2025. The government will make an increase of 1% in the monthly old age security benefits that seniors get, and this small increase will help adjust the benefits accordingly to the cost of consumer goods indexed by CPI.
New Payment Amounts In 2025
The new OAS benefits adjustment for 2025 stipulates that seniors aged 65-74 will get $735.35, and those aged 75 and above will get $808.44. The figure for the older group is higher in part due to the permanent 10% increase introduced in 2022 to help with remaining healthcare expenses. In a year, these payments will amount to $8,824 for the younger seniors and $9,701 for those aged 75 and above.
Aspects Of OAS
OAS benefits are recalculated quarterly — January, April, July, and October — to keep pace with inflation. The adjustments effective in July 2025 bring a 2.3% increase based on the latest CPI figures year over year. This type of indexing allows the government to support the income of seniors relative to the growing costs of food, housing, and healthcare.
OAS Eligibility In 2025
All eligible individuals must be 65 years or older, be a Canadian citizen or permanent resident, and have lived in Canada for at least 10 years after turning 18. Qualifying for OAS means tapping into one of the most important retirement benefits in the country, which offers dependable income support to seniors.
OAS Clawback Rules
OAS is meant to benefit seniors of all income brackets, but those with higher income might face benefit reductions. The OAS recovery tax (or clawback) starts applying when income exceeds $90,997. Benefits stop completely for those aged 65 to 74 when their income hits $148,541. The age 75 and above category has a slightly higher clawback threshold, with benefits ending at an income of $154,196.
Aiding Seniors In The Context Of Increasing Expenses
Even a minor increment reflects the government’s ongoing dedication to seniors by July 2025. The link between the OAS and inflation ensures that seniors have an assured, inflation-protected income in retirement. Alongside the Guaranteed Income Supplement (GIS) for low-income seniors, these benefits continue to provide a foundation of financial stability for the elderly in our country.
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