As March rolls in, many Canadian seniors are looking forward to receiving their next round of pension payments, including the Canada Pension Plan (CPP) and Old Age Security (OAS). These government payments offer crucial financial support, especially for seniors looking to manage the rising costs of everyday life in retirement. If you’re one of the many Canadians relying on these benefits, you’ll want to know when the next deposit is coming in and what you need to do to ensure you’re ready to receive it.
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Understanding Old Age Security (OAS) and Its Role in Retirement
Old Age Security, commonly referred to as OAS, is a vital monthly benefit provided by the Canadian government to seniors aged 65 and older. Designed to help with daily living expenses during retirement, OAS is one of the most significant financial supports available to Canadians after they stop working.
For most Canadians, there’s no need to apply for OAS. Those who meet the eligibility criteria are typically enrolled automatically, starting at age 65. However, some people may need to apply manually depending on their circumstances.
Who Qualifies for Old Age Security?
One of the key advantages of OAS is that it’s not dependent on your employment history — whether you’ve worked your entire life or not doesn’t impact your eligibility. Here’s a breakdown of the criteria:
- Age: You must be 65 years or older.
- Residency: You must be a Canadian citizen or legal resident when your application is approved.
- Duration of Stay in Canada: You need to have lived in Canada for at least 10 years after turning 18. If you’ve lived abroad, you may still qualify, provided you were a Canadian citizen or legal resident before leaving and have lived in Canada for at least 20 years as an adult.
How to Apply for Old Age Security
While most seniors are automatically enrolled in OAS, if you don’t receive an automatic enrollment letter, you’ll need to take action. Service Canada will send a letter around your 64th birthday, prompting you to apply for OAS. If you haven’t received this letter by the time you turn 65, you can contact Service Canada to check your status.
You can apply online, by mail, or in person at a local Service Canada office. If you choose the online route, you’ll need to log into your My Service Canada Account and complete the application in one sitting (you can’t save progress). Alternatively, you can download a paper application form, gather the necessary documents, and submit them either by mail or in person.
How Much Will You Receive from Old Age Security?
Your monthly OAS payment depends on your income and age. For the March 2025 payment, the maximum you can receive is:
- $727.67 per month for those aged 65 to 74.
- $800.44 per month for seniors aged 75 and older.
However, the amount you receive may be lower based on your income. If your net world income from 2023 exceeds the following limits, your OAS payments may be reduced or eliminated:
- For those aged 65-74: Income over $142,609
- For those aged 75 and older: Income over $148,179
OAS payments are adjusted quarterly — in January, April, July, and October — to keep pace with inflation. If prices go up, the payment will increase, but it will never decrease, even if inflation drops.
Is Old Age Security Taxable?
Yes, OAS is considered taxable income in Canada. While no taxes are deducted automatically from your monthly payments, you can opt to have taxes withheld to avoid a larger tax bill at the end of the year.
To set up voluntary tax deductions, you can either sign into your My Service Canada Account or fill out the Request for Voluntary Federal Income Tax Deductions CPP/OAS form and send it to Service Canada.
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When Do OAS Payments Get Sent Out?
OAS payments are typically made on the last business day of every month. For March 2025, if you’re eligible, your payment will be deposited into your bank account or mailed to you on Thursday, March 27, 2025.
Here are the upcoming OAS payment dates for 2025 to keep in mind:
- 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
Key Takeaways
If you’re a senior in Canada, understanding the ins and outs of the Old Age Security program is essential for ensuring you get the financial support you deserve during your retirement years. Make sure you’re aware of the eligibility requirements, application process, and the exact payment dates so that you can plan accordingly. With rising living costs, these payments can provide much-needed relief and peace of mind.
