Canadian seniors aged 65 years or older are set to see an increase in Old Age Security (OAS) benefits. Payments for October rolled out on schedule, with a boost aimed at addressing cost-of-living increases. The Liberal government, however, is facing mounting pressure to extend additional benefits to those under 75.
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Quarterly Adjustments Based on CPI
The OAS payment amounts are reviewed every January, April, July, and October to reflect changes in the cost of living, as measured by the Consumer Price Index (CPI). For October, benefits rose by 2.8% compared to the previous year, and for the October-to-December period, payments increased by 1.3%.
How Much Can Seniors Expect?
The maximum monthly OAS payment varies based on age, residency in Canada, and income:
- Seniors aged 65 to 74 can receive up to $727.67 monthly if their annual net world income for 2023 is below $148,451.
- Seniors aged 75 and older are eligible for a maximum of $800.44 monthly, provided their annual net world income is below $154,196.
If a person’s income exceeds $90,997 in 2023, they may need to repay part or all of the OAS pension. The OAS pension is taxable, but seniors may qualify for non-taxable supplements such as the Guaranteed Income Supplement (GIS), the Allowance, or the Allowance for the Survivor.
Permanent Increase for Seniors Over 75
In July 2022, the Liberal government implemented a permanent 10% increase in OAS payments for seniors aged 75 and older. This measure was introduced to target the most vulnerable elderly Canadians, although some have criticized it for excluding younger seniors.
Opposition Push for Broader Increases
The Bloc Québécois has been advocating for a 10% increase in OAS payments for seniors aged 65 to 74. Bloc Leader Yves-François Blanchet recently announced plans to negotiate with other parties to challenge the Liberal government over this issue. A private member’s bill proposing the expansion was estimated to cost $16 billion over five years but failed to secure support from the majority of Liberals.
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The Path Forward
As debates continue, Canadian seniors and their families can look forward to consistent cost-of-living adjustments to OAS benefits, while advocacy for expanded support for younger seniors gains traction in Parliament. For now, eligible seniors are encouraged to ensure they’ve met all requirements to access the maximum benefits available to them.
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