Posted by The Old Age Security (OAS) program in Canada is designed to provide financial support to seniors aged 65 and older.
Payments are reviewed quarterly—in January, April, July, and October—to reflect changes in the cost of living, as measured by the Consumer Price Index (CPI).
While there was no increase in OAS payments for the April to June 2025 quarter due to a slight decline in the CPI, an adjustment is anticipated for July 2025, contingent upon the CPI data for the preceding months.
Anticipated OAS Payment Rates for July 2025
Based on the CPI trends, the following are the expected maximum monthly OAS payment amounts effective July 2025:
| Age Group | Current Monthly Payment (Apr–Jun 2025) | Anticipated Increase | New Monthly Payment (Jul 2025) |
|---|---|---|---|
| 65 to 74 years | $727.67 | To be determined | To be announced |
| 75 years and over | $800.44 | To be determined | To be announced |
Note: The exact increase will be confirmed once the CPI data for the relevant period is released.
Understanding the OAS Clawback (Recovery Tax)
The Old Age Security Clawback is a recovery tax applied to individuals whose net annual income exceeds a certain threshold. For the period of July 2024 to June 2025, the threshold is set at $90,997. Any income above this amount is subject to a 15% recovery tax.
Example:
- If your net income is $100,000, the amount subject to the clawback is $9,003 ($100,000 – $90,997).
- The recovery tax would be $1,350.45 (15% of $9,003).
Guaranteed Income Supplement (GIS) Updates
The Guaranteed Income Supplement (GIS) provides additional support to low-income seniors who are receiving OAS. GIS amounts are also reviewed quarterly and adjusted based on CPI changes. As of April to June 2025, the maximum monthly GIS payments are:
| Marital Status | Maximum Monthly GIS Payment |
|---|---|
| Single, widowed, or divorced | $1,086.88 |
| Married/common-law partner receives Old Age Security | $654.23 |
| Married/common-law partner does not receive OAS | $1,086.88 |
Note: These amounts are subject to change based on CPI adjustments in July 2025.
CPP Adjustments in 2025
The Canada Pension Plan (CPP) is separate from Old Age Security and is based on an individual’s earnings and contributions during their working years. CPP payments are adjusted annually in January to reflect changes in the cost of living. For 2025, CPP benefits saw a 2.6% increase.
OAS Payment Dates for 2025
Old Age Security payments are typically issued during the last week of each month. The remaining payment dates for 2025 are as follows:
| Month | Payment Date |
|---|---|
| July | July 29 |
| August | August 27 |
| September | September 25 |
| October | October 29 |
| November | November 26 |
| December | December 22 |
Note: To ensure timely receipt of your benefits, consider setting up direct deposit through your My Service Canada Account.
Staying informed about OAS adjustments is crucial for effective retirement planning. Anticipated changes in July 2025, based on CPI data, may lead to increased benefits for eligible seniors.
Regularly reviewing your financial situation and understanding these updates can help ensure financial stability during your retirement years.
FAQs
How is the OAS payment amount determined?
Old Age Security payments are adjusted quarterly based on the Consumer Price Index (CPI) to reflect changes in the cost of living. The amount you receive also depends on your age and net annual income.
Can I defer my OAS payments?
Yes, you can defer receiving your Old Age Security pension for up to 60 months (5 years) after you become eligible. For each month you delay, your monthly payment increases by 0.6%, up to a maximum of 36% at age 70.
Are OAS payments taxable?
Yes, Old Age Security payments are considered taxable income. However, taxes are not automatically deducted from your monthly payments. You can request voluntary tax deductions through your My Service Canada Account or by submitting the appropriate form.