The Old Age Security (OAS) program continues to be a cornerstone of financial support for seniors in Canada. Payments are adjusted periodically to keep up with the rising cost of living, ensuring that seniors receive adequate support. Here’s what you need to know about OAS changes for January 2025 and beyond.
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Old Age Security: How It Works
OAS is a government-funded pension available to Canadians aged 65 and older. The amount you receive depends on:
- Your age
- The number of years you lived in Canada after the age of 18
- Your annual net income
Payments are taxable and may be subject to a recovery tax if your income exceeds a certain threshold. For 2023, this threshold was set at $90,997.
How Rising Inflation Impacts CPP and OAS Benefits: What You Need to Know
How Much will OAS Increase in January 2025: Seniors Need to Know
What’s New in 2025?
- No Payment Increase for January to March 2025:
The next OAS quarterly adjustment will not include an increase for the January to March 2025 period. Despite this, payments rose by 2.0% over the past year, reflecting the Consumer Price Index (CPI) changes from January 2024 to January 2025. - October to December 2024 Adjustment Recap:
Payments for the last quarter of 2024 increased by 1.3%, bringing the total annual increase to 2.8% from October 2023 to October 2024. - January 2025 Payment Amounts:
Finalized figures for January payments will be published at the end of December 2024. Seniors should check for updates to confirm their exact payment amount.
Increased Payments for Seniors Aged 75 and Over
Since July 2022, seniors aged 75+ receive an additional 10% on their OAS payments.
- Maximum Monthly Payments in 2024:
- Ages 65–74: Up to $727.67
- Ages 75+: Up to $800.44
Supplemental OAS Benefits
In addition to the OAS pension, eligible individuals may qualify for other benefits:
Guaranteed Income Supplement (GIS)
A non-taxable benefit for low-income seniors aged 65 and older.
- Maximum payment for single individuals: $1,086.88/month
Allowance
Designed for individuals aged 60–64 with a low-income spouse or partner receiving GIS and OAS.
- Maximum payment: $1,381.90/month
Allowance for the Survivor
For surviving spouses or common-law partners aged 60–64 with low income.
- Maximum payment: $1,647.34/month
Note: GIS, Allowance, and Allowance for the Survivor payments are adjusted annually based on income and are not taxable.
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Will All Seniors Get an Increase in OAS 2025: Recent Adjustments and Eligibility
How OAS Adjustments Are Calculated
OAS payments are reviewed quarterly in January, April, July, and October. Adjustments are based on the Consumer Price Index (CPI) to ensure payments align with inflation and cost-of-living changes. This process guarantees that seniors maintain their purchasing power amid rising expenses.
Eligibility for Partial OAS Pensions
If you lived in Canada for at least 10 years but less than 40 years after turning 18, you may qualify for a partial OAS pension. Contact Service Canada or use the OAS Estimator Tool to determine your specific payment.
Planning Ahead for 2025
While there won’t be an increase in OAS payments for the first quarter of 2025, the annual adjustments over the past year have helped seniors keep up with inflation. Stay informed about upcoming changes, including the January 2025 payment details, to be announced later in December 2024.
For tailored assistance, contact Service Canada or consult the Old Age Security Program website.
Pro Tip: Seniors should also review their eligibility for supplemental benefits like GIS or Allowance to maximize their financial support.
This ensures seniors remain updated and can make informed decisions about their financial planning in the new year.
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