Canada’s seniors are set to receive another boost to their retirement income this fall. The Canada Revenue Agency (CRA) has confirmed that Old Age Security (OAS) payments will see an increase, with eligible recipients receiving up to $742 per month, depending on age and income. This announcement comes as part of the government’s ongoing commitment to support seniors while accounting for inflation adjustments in 2025.
For many retirees, understanding the payment schedule, eligibility criteria, and combined benefits with the Guaranteed Income Supplement (GIS) is crucial for planning finances effectively. Here’s everything you need to know about the upcoming OAS payment increase.
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What is the Old Age Security (OAS) Program?
The Old Age Security (OAS) program is a cornerstone of Canada’s retirement system, providing a monthly pension to seniors aged 65 and older who have lived in Canada for at least 10 years after turning 18. For those who have lived in Canada for 40 years or more, the full pension is available.
The program is income-tested when combined with other benefits like GIS, meaning higher-income seniors may see partial payments or adjustments. The recent increase is based on changes in the Consumer Price Index (CPI), ensuring benefits keep pace with the cost of living.
How Much Will Seniors Receive?
For October 2025, the OAS payment amounts are as follows:
- Ages 65 to 74: Up to $742/month for individuals with a net world income below $148,451.
- Age 75 and over: Up to $814/month for individuals with a net world income below $154,196.
Those with partial OAS eligibility—having lived in Canada for at least 10 years but less than 40—will receive prorated payments based on their residency period.
Guaranteed Income Supplement (GIS) – Boosting Retirement Income
In addition to OAS, many seniors are eligible for the Guaranteed Income Supplement (GIS), a monthly benefit for low-income Canadians aged 65 and older. GIS payment amounts depend on income, marital status, and whether a spouse receives OAS or GIS.
- Single, widowed, or divorced: Up to $1,097 per month
- Couples where both receive OAS: Up to $660 per month per person
- Couples where one receives OAS and the other GIS: Up to $1,097 per month combined
Together, OAS and GIS can provide a substantial income boost for eligible seniors, especially for those on fixed retirement incomes.
OAS and GIS Payment Dates for 2025
Seniors receiving OAS and GIS can expect payments to arrive on September 25, 2025, directly via direct deposit. Seniors relying on cheques should anticipate slight delays depending on postal delivery.
- Direct deposit is highly recommended to avoid delays and ensure timely access to funds.
- CRA advises confirming banking information in your My CRA Account to prevent misdirected payments.
Who Is Eligible for the OAS Increase?
Eligibility requirements remain consistent:
- Must be 65 or older for standard OAS (60–64 may be eligible for Allowance or Allowance for the Survivor).
- Must have resided in Canada for at least 10 years after age 18 for partial OAS, and 40 years for full OAS.
- Must not exceed the income thresholds to receive full benefits.
Seniors who live outside Canada may still qualify if they have lived in Canada for at least 20 years after turning 18. Partial benefits may be available for shorter residency periods.
How to Prepare for the OAS Payment
- Update Your CRA Account: Confirm that your mailing address and banking details are current.
- Check Income Levels: Review 2024 income to anticipate OAS adjustments and potential GIS eligibility.
- Plan Your Budget: Seniors can use this upcoming increase to cover essential expenses, health care costs, or savings for emergencies.
- Watch for CRA Notices: CRA will send updated notices showing your new payment amounts and combined OAS/GIS totals.
Additional Resources for Seniors
- Canada Pension Plan (CPP): Those receiving CPP should coordinate benefits with OAS to optimize retirement income.
- Tax Considerations: OAS and GIS are taxable benefits; seniors should consult their tax advisors for planning purposes.
- Provincial Top-Ups: Some provinces offer additional benefits for seniors, which can be combined with OAS/GIS for maximum support.
The confirmed OAS payment increase of up to $742/month for September 2025 is a welcome relief for Canadian seniors navigating retirement expenses. When combined with GIS and other benefits, eligible retirees can see a meaningful boost in their monthly income. Seniors should ensure all CRA account information is up to date and plan for the September 25, 2025, direct deposit to make the most of these payments.