Canadian seniors can breathe a little easier this summer. Starting July 2025, Old Age Security (OAS) payments are getting a modest boost to help offset inflation.
With living costs continuing to climb, this 1% bump means recipients aged 65–74 will now receive $735.35 monthly, while those 75 and older will collect $808.44. It’s not a massive raise—but for many on fixed incomes, every extra dollar counts.
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Boost
So, why the increase? OAS isn’t randomly adjusted—it’s tied to the Consumer Price Index (CPI). Every quarter, the government reviews inflation trends and adjusts benefits accordingly.
From July to September 2025, the rise came in at 1.0%, translating into a 2.3% increase compared to last year. While that might not sound huge, it reflects Canada’s commitment to cushioning seniors from the worst effects of inflation.
Here’s a quick look at what the new payments look like:
| Age Group | Monthly OAS (July 2025) |
|---|---|
| 65 to 74 | $735.35 |
| 75+ | $808.44 (includes 10% boost) |
Criteria
Not everyone gets OAS automatically. You’ll need to meet a few basic qualifications:
- You must be at least 65 years old.
- You must be a Canadian citizen or legal resident.
- You must have lived in Canada for at least 10 years since turning 18.
If you’re turning 65 soon, check your My Service Canada account. Many Canadians are enrolled automatically, but you want to be sure everything’s in order before the payments kick in.
Extras
OAS isn’t the only support out there. If your income is low, you might also qualify for:
- Guaranteed Income Supplement (GIS) – for OAS recipients with low incomes.
- Allowance – for low-income spouses aged 60–64 of GIS recipients.
- Allowance for the Survivor – for low-income widows or widowers aged 60–64.
These programs can make a significant difference, especially if OAS alone doesn’t meet your needs.
Timing
Wondering when you’ll actually see the money? OAS payments usually arrive on the third-to-last business day of the month. For July 2025, expect your payment to show up between July 27th and July 29th—though exact timing may vary depending on your bank.
Taxes
Here’s where things get a little more complicated: OAS is taxable income. That means you need to report it on your annual return. But no taxes are automatically withheld unless you request it. So, plan ahead to avoid any surprise tax bills next spring.
There’s also the clawback rule to think about. If your income exceeds $90,997 in 2025, your OAS will be gradually reduced. And if you earn over:
- $148,541 (ages 65–74), or
- $154,196 (ages 75+),
your OAS payments could be entirely clawed back.
Strategy
If you’re not quite 65, you’ve got options. You can delay your OAS payments for up to five years. For each month you defer, your payments go up by 0.6%, maxing out at 36%. This strategy makes sense if you’re still working or expect a higher income later on.
Before making any decisions, it’s worth consulting with a financial planner or using the tools on the Service Canada website.
If you’re already receiving OAS, now’s a great time to double-check your eligibility for additional supports. Small changes can make a big impact when every dollar counts.
This summer’s OAS increase isn’t groundbreaking, but it’s a timely and helpful gesture—especially as inflation continues to weigh on everyday expenses. Whether you’re budgeting for groceries, housing, or medical needs, that extra few bucks each month adds up.
FAQs
Who qualifies for the $735 OAS?
Anyone 65+, a legal Canadian resident for 10+ years.
When is the next OAS payment date?
Expect direct deposit between July 27–29, 2025.
Is OAS income taxable?
Yes, you must report OAS income on your tax return.
Can I delay OAS payments?
Yes, you can defer up to 5 years for higher payments.
What’s the clawback income limit?
Clawback starts at $90,997 and ends near $154,196.
