With prices soaring across the board, Canadian seniors are feeling the pressure. The Old Age Security (OAS) program is a financial lifeline, and in 2025, a proposed $2,350 boost could provide a much-needed cushion.
Whether you’re already receiving OAS or approaching retirement, this guide breaks down what the increase means, who qualifies, when payments are made, and how you can maximize every dollar.
Overview
The OAS program delivers monthly payments to eligible seniors aged 65 and older. It’s not based on work history but on age, residency, and income. Funded by general tax revenue, OAS is meant to provide a basic level of income security in retirement.
In 2025, the maximum monthly OAS is expected to be:
- $727.67 for seniors aged 65 to 74
- $800.44 for seniors 75 and over
These amounts are adjusted quarterly for inflation and already include a 10% top-up for those 75 and older introduced in July 2022.
Now, a one-time payment of $2,350 is being proposed to help seniors handle the rising cost of living. Though not confirmed, this increase has generated excitement and hope across the country.
Increase
The proposed $2,350 increase is part of a broader effort to support vulnerable Canadians in 2025. It’s expected to be a one-time payment, intended to relieve financial pressure from inflation, especially for those living on fixed incomes.
Why $2,350? Rising prices in housing, food, medication, and utilities have left many seniors financially stretched. This payment would provide a temporary buffer and help cover essentials without dipping into savings or taking on debt.
Eligibility
To qualify for this potential boost, you must meet standard OAS eligibility rules:
- Be 65 years of age or older in 2025
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years after age 18
- Meet income thresholds (2025 estimates):
- $148,451 or less (age 65-74)
- $154,196 or less (age 75+)
Higher-income seniors may face a clawback under the OAS Recovery Tax, which reduces benefits gradually above those limits.
Seniors living abroad may still qualify, provided they meet residency or international agreement requirements, although a withholding tax may apply.
Payments
Here’s what monthly OAS payments could look like in 2025:
| Age Group | Monthly OAS Amount | Annual Total |
|---|---|---|
| 65 to 74 | $727.67 | $8,732.04 |
| 75 and older | $800.44 | $9,605.28 |
If the $2,350 one-time payment is approved, it would come as an additional lump sum around mid-2025.
Regular OAS payments are made monthly, typically on the third-to-last business day. Early 2025 dates include:
- January 29, 2025
- February 27, 2025
- March 28, 2025
Make sure your direct deposit information is current in your My Service Canada Account to avoid delays.
Apply
If you haven’t applied for OAS yet, here’s how to do it:
- Confirm you’re eligible (age, residency, income)
- Gather your documents: SIN, proof of residence, bank info
- Apply online or by mail
- Track your application through My Service Canada Account
Some seniors are automatically enrolled, but it’s best to check. Waiting too long can delay your payments.
Maximize
Getting the most out of OAS isn’t just about collecting the cheque—there are smart strategies to increase your income:
- Defer your OAS
Delay payments up to age 70 to get a 0.6% increase per month deferred. That’s a 36% increase over time. - Avoid clawbacks
If your income is close to the recovery tax threshold:- Use TFSAs instead of RRSPs
- Plan RRSP withdrawals carefully
- Income split with your spouse
- Apply for GIS and provincial programs
Low-income seniors may qualify for the Guaranteed Income Supplement (GIS), which boosts monthly income. Applying for OAS also gets you considered for GIS.
Check what’s available in your province—some regions offer extra help with rent, transit, and healthcare for seniors.
Future
Whether or not the $2,350 increase is passed, staying informed about the OAS program is key to managing your retirement income. As the government continues responding to inflation and affordability, programs like OAS remain central to seniors’ financial health.
FAQs
What is the 2025 OAS monthly payment?
$727.67 (65–74), $800.44 (75+).
Who qualifies for the $2,350 boost?
Seniors aged 65+ meeting income and residency rules.
Is the $2,350 OAS boost confirmed?
It is proposed, not officially confirmed yet.
When are OAS payments made?
Usually on the third-to-last business day monthly.
How can I increase my OAS amount?
Defer payments, reduce income, or apply for GIS.
