Canadian seniors could be in for some welcome financial relief in 2025. With rising prices hitting essential items like groceries, rent, and medications, a proposed one-time Old Age Security (OAS) boost of $2,350 is gaining attention. Although not officially confirmed yet, this proposed payment could significantly ease the financial burden on retirees facing mounting costs.
Let’s explore what this potential increase means, who might qualify, and how it fits within the broader OAS framework.
Quick Overview of the OAS Proposal
Here’s a brief summary of the proposed Old Age Security changes for 2025:
| Details | Information |
|---|---|
| Program Name | Old Age Security (OAS) |
| Proposed Increase | One-time payment of up to $2,350 |
| Monthly OAS (2025) | $727.67 (ages 65–74), $800.44 (75+) |
| Eligibility Age | 65 and older |
| Residency Requirement | Minimum Canadian residency needed |
| Income Limits (2025) | $148,451 (65–74), $154,196 (75+) |
| Official Website | Canada.ca |
What Is the OAS Program?
The Old Age Security (OAS) is a federal government pension program for Canadians aged 65 or older. Unlike the Canada Pension Plan (CPP), which is based on employment contributions, OAS is funded through general tax revenue and is determined by your residency in Canada.
To receive the full OAS amount, seniors must have lived in Canada for at least 40 years after turning 18. Those with 10 to 39 years of residency may receive a partial pension.
$2,350 OAS Increase: What’s Being Proposed
In response to rising inflation and increased living expenses, the federal government is considering a one-time $2,350 OAS payment in 2025. Though not yet confirmed, this initiative would follow recent trends of offering additional senior support during economic pressure periods.
This amount could assist in covering essential costs such as:
- Food and groceries
- Medical bills and prescriptions
- Utility payments
- Housing and rent
This payment would be especially valuable to seniors on fixed or limited incomes.
Standard OAS Payments in 2025
Before any proposed increases, here’s what regular monthly OAS payments will look like in 2025:
- Ages 65–74: $727.67 per month
- Ages 75+: $800.44 per month
These amounts include the 10% increase introduced in 2022 for those aged 75 and older. Payments are also adjusted quarterly based on inflation.
Who Is Eligible for the $2,350 Payment?
To qualify for OAS—and potentially the one-time increase—applicants must meet the following criteria:
- Be 65 years or older in 2025
- Be a Canadian citizen or legal resident
- Meet the minimum residency requirement
- Have an annual income below:
- $148,451 (for ages 65–74)
- $154,196 (for ages 75+)
Seniors earning above these limits may face reductions due to the OAS Recovery Tax.
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How to Apply for OAS Benefits
Applying for OAS is straightforward, but it helps to be organized. Follow these steps:
- Check Your Eligibility
Confirm age, residency years, and income level. - Prepare Documentation
You’ll need your SIN, banking details, and residency proof. - Submit Your Application
You can apply:
- Online via the My Service Canada Account
- By mail using a paper application
- Monitor Your Status
Use your online account to track progress and updates.
If the $2,350 payment is approved, seniors already receiving OAS may automatically receive it via direct deposit.
When Could the $2,350 Payment Be Issued?
Regular OAS payments occur monthly, typically on the third-last banking day of each month. If the $2,350 OAS boost is passed, it is likely to be issued mid-year in 2025.
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Upcoming 2025 OAS payment dates include:
- June 29, 2025
- July 27, 2025
- August 28, 2025
To ensure on-time payment, verify your direct deposit information with the Canada Revenue Agency (CRA) is current.
Tips to Maximize Your OAS Income
- Delay OAS for Higher Payouts
If you delay receiving your OAS past age 65, your monthly amount will increase by 0.6% for every month deferred, up to 36% more if delayed until age 70. - Avoid the OAS Clawback
Seniors with incomes over $86,912 in 2025 may face OAS Recovery Tax deductions. Reduce taxable income by:
- Using a Tax-Free Savings Account (TFSA) over RRSPs
- Splitting pension income with your spouse
- Spreading RRSP withdrawals over multiple years
- Apply for Additional Support Programs
If your income is lower, you may also qualify for other programs like:
- Guaranteed Income Supplement (GIS)
- Provincial housing or utility rebates
- Senior tax credits or subsidized transit passes
These supports can add hundreds or thousands of dollars to your annual income.
Frequently Asked Questions
Q1. Is the $2,350 OAS payment confirmed?
No, it’s still a proposal and hasn’t been officially approved.
Q2. Will I need to apply for the extra $2,350?
If approved, most eligible seniors will receive it automatically.
Q3. What are the 2025 income limits for OAS?
- $148,451 for seniors aged 65–74
- $154,196 for seniors aged 75 and above
Q4. Can I still get OAS if I live outside Canada?
Yes, but you must meet residency rules or international agreement terms.
Q5. When are regular OAS payments issued?
Usually on the third-last business day of each month.
