The Old Age Security (OAS) Pension Benefits remain unchanged for the January to March 2025 quarter, following Service Canada’s recent quarterly review. This decision reflects a decrease in the Consumer Price Index (CPI) toward the end of 2024, resulting in no adjustments to benefit amounts. Here’s a detailed breakdown of what recipients can expect, including payment amounts, dates, eligibility criteria, and tax implications.
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Table of Contents
OAS Pension Benefits Remain Stable for Early 2025
For the first quarter of 2025, seniors aged 65 and older will continue to receive the same OAS Pension Benefits as in the last quarter of 2024:
- Seniors aged 65-74: Up to $727.67 per month.
- Seniors aged 75 and older: Up to $800.44 per month, thanks to a 10% increase introduced previously.
These amounts are based on seniors having lived in Canada for at least 40 years after the age of 18. Partial benefits are available for those with fewer years of residency, calculated at 1/40th of the full amount per year of Canadian residency.
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OAS Pension Payment Schedule for January–March 2025
Payments for the OAS Pension Benefits will be issued as follows:
- January: Payment date is January 29, 2025
- February: Payment date is February 26, 2025
- March: Payment date is March 27, 2025
Direct deposits will appear in recipients’ bank accounts automatically on these dates, while paper checks will arrive by mail around the same time. If payments are not received within five business days, recipients should contact Service Canada promptly.
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Eligibility and Additional Benefits
Residency Requirements
To qualify for OAS Pension Benefits, individuals must meet the following criteria:
- A minimum of 10 years of residency in Canada after the age of 18.
- For full benefits, individuals must have resided in Canada for 40 years after turning 18.
Partial payments are calculated as 1/40th of the maximum benefit amount for each year of residency.
Widowed Individuals
Widowed individuals aged 60-64 may qualify for up to $1,647.34 per month. To be eligible:
- Annual income must not exceed $29,712.
- Applicants must live in Canada and provide proof of their partner’s death.
Spousal Allowance
The OAS Pension Benefits program also provides financial support for individuals aged 60-64 whose spouse or partner receives OAS. The maximum benefit for this allowance is $1,381.90 per month, with the combined couple’s income not exceeding $40,800 annually.
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Tax Implications of OAS Pension Benefits
Clawback for Higher Incomes
Recipients with higher incomes may see their OAS Pension Benefits reduced through the OAS recovery tax. The clawback begins when net income exceeds $90,997 and results in a reduction of 15 cents for every dollar above this threshold.
Full repayment is required when net income reaches:
- $148,451 for recipients aged 65-74.
- $154,196 for recipients aged 75 and older.
Taxable Income and Deductions
OAS Pension Benefits count as taxable income. Recipients can request voluntary tax deductions to manage their tax obligations. These deductions can be adjusted at any time. Tax slips are sent by mail before the filing deadline.
Future Adjustments and Quarterly Reviews
The next quarterly review for OAS Pension will take place in March 2025. If there are changes in the cost of living or CPI, adjustments may take effect starting in April 2025.
Key Takeaways
- The OAS Pension for January–March 2025 will remain at 2024 levels.
- Seniors aged 65-74 can receive up to $727.67 per month, while those aged 75 and older receive up to $800.44 per month.
- Payment dates are January 29, February 26, and March 27.
- Higher-income seniors may experience reductions through the OAS recovery tax.
By staying informed about the OAS Pension, recipients can better manage their finances and plan for upcoming changes. For more information or assistance, contact Service Canada or visit their website.
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