January is already more than halfway over, and that means seniors across Canada can expect their first government benefit payments of the year soon. Among these payments are the January Canada Pension Plan (CPP) and Old Age Security (OAS) payments, two vital programs that help seniors manage their living expenses.
Old Age Security (OAS) is a key government pension program issued by the Canada Revenue Agency (CRA). Designed to assist Canadians aged 65 and older, OAS helps cover everyday costs during retirement. Whether you’re already receiving OAS or considering your eligibility, this program can make a significant difference in managing expenses.
Here’s a comprehensive guide to the January 2025 OAS payment, including payment dates, eligibility, and how much you can expect to receive.
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What Is Old Age Security (OAS)?
Old Age Security (OAS) is a monthly government payment program aimed at providing financial support to Canadians aged 65 and older. It’s a foundational part of retirement planning, helping seniors across the country manage their everyday living costs.
The great news? Many Canadians are automatically enrolled and start receiving their OAS payments as soon as they reach the qualifying age.
Who Is Eligible for Old Age Security?
Unlike other government benefits, Old Age Security eligibility is not tied to your work history. Whether you’re retired, still working, or have never been part of the workforce, you may qualify for this benefit.
To be eligible for OAS, you must:
- Be at least 65 years old.
- Be a Canadian citizen or legal resident when your application is approved.
- Have lived in Canada for at least 10 years since turning 18.
If you’re living abroad, you might still qualify. The key requirements are that you must have been a Canadian citizen or legal resident before leaving the country and have spent at least 20 years in Canada as an adult.
How to Apply for Old Age Security
If you’re approaching your 65th birthday and haven’t received a notice from Service Canada about your OAS eligibility, it’s time to act. While many people are automatically enrolled, others need to apply to start receiving payments.
Here’s how to apply for OAS:
- Online: Log in to your My Service Canada Account to complete the application. Note that the system doesn’t allow you to save and return to a partially completed application, so make sure you have all your personal details ready.
- By Mail or In Person: Fill out the paper application form, include certified copies of any required documents, and either mail it or drop it off at your local Service Canada office.
How Much Is the Old Age Security Payment in January 2025?
For January 2025, the maximum Old Age Security (OAS) payment is:
- $727.67 per month for Canadians aged 65 to 74.
- $800.44 per month for seniors aged 75 and older.
The exact amount you’ll receive depends on your income. To qualify for any OAS payment, your net world income for 2024 must have been below:
- $148,451 for those aged 65 to 74.
- $154,196 for those aged 75 and older.
If you’re unsure about your payment, the CRA’s payment estimator tool can help you calculate the amount you’re eligible to receive.
It’s worth noting that OAS payments are reviewed quarterly—in January, April, July, and October—to account for inflation. This adjustment ensures that your payment reflects the rising cost of living. However, payments will not decrease even if inflation drops.
Is Old Age Security Taxable?
Yes, Old Age Security payments are considered taxable income. While taxes are not automatically deducted from your monthly payments, you can request this service if you’d prefer to avoid a larger tax bill at the end of the year. Here’s how:
- Log into your My Service Canada Account and set up voluntary tax deductions.
- Alternatively, fill out the “Request for Voluntary Federal Income Tax Deductions CPP/OAS” form and submit it to Service Canada.
If you don’t opt for monthly deductions, you may be required to pay taxes quarterly instead. Residents of Canada will receive a T4 slip for their OAS payments, while those living abroad will receive an NR4 slip for tax filing purposes.
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When Will the January 2025 OAS Payment Be Made?
The next Old Age Security (OAS) payment is scheduled to arrive in bank accounts on Wednesday, January 29, 2025.
Here are the remaining OAS payment dates for 2025:
- February 26, 2025
- March 27, 2025
- April 28, 2025
- May 28, 2025
- June 26, 2025
- July 29, 2025
- August 27, 2025
- September 25, 2025
- October 29, 2025
- November 26, 2025
- December 22, 2025
Conclusion
Old Age Security is a crucial financial support program for Canadian seniors, helping them manage the cost of living during retirement. If you’re eligible, the January 2025 payment is just around the corner. Make sure you’re prepared by confirming your eligibility, applying if necessary, and understanding the amount you can expect to receive. For any questions or updates, consult your My Service Canada Account or reach out to Service Canada directly.
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