The Canada Revenue Agency (CRA) has confirmed a significant boost for Old Age Security (OAS) recipients in 2025, with eligible seniors set to receive up to $1,860 per month. This increase is aimed at helping retirees cope with the rising cost of living, inflation, and other financial pressures that have been mounting in recent years.
Understanding the OAS Program
Old Age Security is a monthly payment available to most Canadians aged 65 and older. Unlike the Canada Pension Plan (CPP), OAS is funded through general government revenues, meaning you do not need to have contributed to it during your working years to qualify. The payment amount is determined by factors such as age, years of residency in Canada, and income level.
The Reason Behind the Increase
In recent months, inflation and housing costs have placed a heavy burden on seniors living on fixed incomes. The CRA’s decision to adjust OAS payments to $1,860 per month is part of the federal government’s ongoing effort to ensure that older Canadians can maintain a decent standard of living despite rising expenses. This increase will be implemented starting in the new payment cycle for 2025.
Who Is Eligible for the $1,860 OAS Payment?
Eligibility for the increased payment depends on several key factors. Seniors must be at least 65 years old, meet the residency requirement of having lived in Canada for at least 10 years after turning 18, and have an income below the government’s set threshold for full OAS benefits. The exact payment amount varies for those with partial residency or higher incomes.
OAS Payment Structure for 2025
| Age Group | Maximum Monthly Payment | Annual Income Threshold for Full OAS |
|---|---|---|
| 65 to 74 years | $1,860 | $142,609 |
| 75 years and over | $1,860 + 10% increase | $148,179 |
How to Apply or Update Your Information
Most Canadians are automatically enrolled in OAS, but if you are turning 65 and have not received a notification from Service Canada, you may need to apply manually. It’s also important to ensure your banking and contact information is up to date to avoid payment delays.
Payment Dates for 2025
OAS payments are issued monthly, typically in the last week of the month. The new $1,860 rate will be reflected in payments starting from the first quarter of 2025. Seniors should monitor their Service Canada account or bank statements to confirm the updated amount.
Final Thoughts
The confirmed $1,860 monthly OAS increase offers significant relief for seniors facing financial pressures. While the eligibility requirements remain consistent, the higher benefit aims to bridge the gap between fixed retirement income and the escalating costs of everyday living. Seniors who are uncertain about their eligibility should reach out to Service Canada or use the government’s online eligibility tools for clarity.