The Canadian government has confirmed the Old Age Security (OAS) payment updates for 2025. While OAS benefits are reviewed quarterly to adjust for inflation, the April to June 2025 quarter will see no changes in payment amounts compared to the previous quarter. However, there has been a 2% increase over the past year, from April 2024 to April 2025, reflecting the rising cost of living.
Here’s what Canadian seniors need to know about their OAS payments, eligibility, and the impact of the latest adjustments.
OAS Payment Amounts for 2025
As of the January to March 2025 quarter, the maximum monthly OAS payments are as follows:
- Seniors aged 65 to 74: Maximum monthly payment of $727.67, provided their annual net world income in 2023 was below $142,609.
- Seniors aged 75 and over: Maximum monthly payment of $800.44, applicable if their annual net world income in 2023 was below $148,179.
These amounts will remain the same for the second quarter of 2025 (April to June) due to no increase in the Consumer Price Index (CPI) over the previous quarter. However, these rates may be adjusted in July 2025 as the government reviews OAS payments quarterly.
OAS Payment Adjustments & Inflation
OAS benefits are indexed to inflation and reviewed four times a year (January, April, July, and October). The government calculates adjustments based on the CPI to ensure seniors’ purchasing power remains stable.
Although there is no immediate increase for Q2 2025, OAS benefits saw a 2% increase over the past year. This adjustment ensures that seniors receive adequate support amid economic changes.
Who Qualifies for OAS?
To be eligible for OAS payments, seniors must:
- Be 65 years or older
- Have lived in Canada for at least 10 years after the age of 18
- Be a Canadian citizen or legal resident at the time of application
Full OAS benefits require a residency of 40 years in Canada after turning 18. Those with less than 40 years may receive a partial pension based on their years of residence.
OAS Recovery Tax (Clawback)
Higher-income seniors may have to repay part or all of their OAS benefits through the OAS recovery tax, commonly known as the clawback. This applies if an individual’s net income exceeds:
- $86,912 (2023 tax year) – repayment starts at 15% of the excess income
- $142,609 (for ages 65-74) or $148,179 (for ages 75+) – full OAS pension is clawed back
To avoid clawback, seniors are advised to manage their taxable income efficiently, potentially through income-splitting strategies or Registered Retirement Income Fund (RRIF) withdrawals.
OAS Increase for Seniors Aged 75+
In July 2022, the federal government permanently increased OAS payments by 10% for seniors aged 75 and over. This change continues in 2025, ensuring those in this age group receive higher monthly payments.
How to Apply for OAS in 2025
Seniors can apply online or by mail for OAS benefits. The government may also automatically enroll eligible seniors, in which case they will receive a letter from Service Canada.
- Apply through My Service Canada Account (MSCA)
- Paper application: Download the OAS Application Form here
- Call Service Canada for inquiries: 1-800-277-9914 (Canada & USA)
When Are OAS Payments Made?
OAS benefits are paid monthly and deposited directly into seniors’ bank accounts. Here are the 2025 OAS payment dates:
- January 29, 2025
- February 26, 2025
- March 27, 2025
- April 26, 2025
- May 29, 2025
- June 27, 2025
Full payment schedules are available on the Government of Canada website: OAS Payment Schedule
Conclusion
The Old Age Security (OAS) program is a vital financial support system for Canadian seniors. While there is no increase in OAS benefits for Q2 2025, seniors have benefited from a 2% increase over the past year, keeping pace with inflation. Those aged 75 and older continue to receive an additional 10% boost to their payments.
Seniors should monitor their net income to avoid OAS clawbacks and take advantage of government resources for financial planning. For the most up-to-date information, visit Canada.ca or contact Service Canada for assistance.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
A senior at Yale-NUS College with interests in developmental and labour economics, as well as creative non-fiction and poetry. Currently, I’m studying as an Economics major and an Arts and Humanities minor (focusing on Creative Writing) with heavy involvement in the Singaporean journalism scene and involved in research on economic history and educational policy. I’m working as an author for SKC News, Yale-NUS’ student publication, as a writer for Wingspan, Yale-NUS’ alumni magazine, and as a tutor for the NUS Libraries Writer’s Centre. | Linkedin