OAS Increase in 2025 | The Impact on Your Retirement Income

In 2025, OAS (Old Age Security) payments have increased to help seniors with higher living costs. Seniors aged 65 to 74 now receive up to $727.67 per month, while those aged 75 and older receive up to $800.44 per month. Below is an in-depth guide on how much the OAS payment increased in 2025, its calculation formula, who is eligible, and tips to maximize your benefits.

How Much Did OAS Increase in 2025?

In 2025, the Canadian government increased OAS payments to help seniors keep up with rising costs. Here are the new payment amounts:

Ages 65 to 74: The monthly OAS payment in 2025 is $727.67.
Ages 75 and older: Payments increased by 10%, making it $800.44 per month.

These changes in pensions show the government’s effort to support seniors in retirement and help them manage the rising costs of living.

5-Year Comparison of OAS Payments in Canada (2021–2025)

Here is a 5-year comparison of Old Age Security (OAS) payments in Canada:

Year	Age 65 to 74 (Monthly Payment)	Age 75 and Older (Monthly Payment)	Notes
2021	$626.49	$626.49	OAS increased by 1.3% in July 2021
2022	$642.25	$706.57	A 10% increase was introduced for seniors aged 75+ starting July 2022
2023	$687.56	$756.32	Payments adjusted quarterly based on the Consumer Price Index (CPI)
2024	$691.00	$784.67	CPI adjustments continued; payments increased slightly due to inflation
2025	$727.67	$800.44	Reflects higher costs, with CPI stable

This table shows the yearly OAS payment increases over five years, including adjustments for inflation and extra support for seniors aged 75 and older.

Why Did OAS Payments Increase in 2025?

In 2025, OAS (Old Age Security) payments have increased due to inflation. The government reviews OAS amounts every three months and adjusts them according to the Consumer Price Index (CPI). This helps seniors manage rising costs for essentials like food, housing, and healthcare.

Additionally, seniors aged 75 and older will receive an extra 10% increase in their OAS payments. This additional amount supports the higher financial needs of older seniors, who often face increased medical expenses or have fewer savings.

OAS Payment Schedule

OAS payments are issued monthly, usually on the last business day of the month.

Month	Payment Date
January	January 30, 2025
February	February 27, 2025
March	March 28, 2025

Payments can be received by direct deposit or cheque, with direct deposit being faster and more reliable.

Formula to Calculate OAS Increase in 2025

To calculate the Old Age Security (OAS) increase in 2025, you can use the following formula:

OAS Increase = 2025 OAS Payment − 2024 OAS Payment

Applying the Formula:

1. For ages 65 to 74:

OAS Increase = 727.67−691.00 =36.67

2. For ages 75 and older:

OAS Increase = 800.44−784.67 = 15.77

Summary:

Ages 65 to 74: The OAS payment increased by $36.67 per month in 2025.
Ages 75 and older: The OAS payment increased by $15.77 per month in 2025.

Example One: For Ages 65 to 74

Mary is 68 years old. In 2024, her OAS payment was $691.00 per month. In 2025, it increased to $727.67 per month.
Calculation: $727.67 − $691.00 = $36.67
Result: Mary’s OAS payment increased by $36.67 per month in 2025.

Example Two: For Ages 75 and Older

John is 76 years old. In 2024, his OAS payment was $784.67 per month. In 2025, it increased to $800.44 per month.

Calculation: 800.44−784.67 = 15.77800.44−784.67 = 15.77

Result:
John’s OAS payment increased by $15.77 per month in 2025.

How to Maximize Your OAS Benefits

Here are some simple ways to get the most out of your OAS payments:

Delay Your Payments:
You can wait until age 70 to start receiving OAS. Each month you delay after 65, your payment will increase by 0.6%, which can add up to a 36% increase by age 70.
Manage Your Income:
If your income is near the clawback limit, consider splitting pension income with a lower-income spouse or taking money from tax-free savings accounts (TFSAs) instead of RRSPs.
Plan Ahead:
Work with a financial advisor to manage withdrawals from retirement funds and reduce your taxable income in retirement.
Apply Early:
Make sure to apply for OAS at least six months before turning 65 to avoid delays in getting your payments.

Who Is Eligible for OAS in 2025?

To qualify for OAS payments, you need to meet these requirements:

Age: You must be at least 65 years old.
Residency: You must have lived in Canada for at least 10 years after turning 18.
Citizenship or Legal Status: You must be a Canadian citizen or legal resident when you apply.

If you’ve lived in Canada for less than 40 years after turning 18, your OAS payment will be based on how long you’ve lived in Canada.

Conclusion

In 2025, OAS payments have increased to help seniors with higher living costs. Seniors aged 65 to 74 now receive up to $727.67 per month, and those 75 and older receive up to $800.44 per month. These increases reflect the government’s effort to support seniors and improve their financial security in retirement.

If you have any questions or concerns about the 2025 OAS payment increases, you can contact Service Canada for help. They can provide information about your payments, eligibility, or any other issues you may have.