As you approach retirement or are already in your senior years, it’s crucial to stay updated on changes to Old Age Security (OAS) to maintain your financial stability. For Canadian seniors, the OAS payment amounts are set to increase in July 2025, with a special boost for those aged 75 and older.
Whether you’re applying for OAS benefits for the first time or are already receiving them, understanding the new payment structures, eligibility criteria, and available support programs will help you navigate your financial planning.
This article will guide you through the key details on OAS eligibility, payment updates, clawback thresholds, application process, and additional assistance programs available to seniors.
What Is OAS (Old Age Security)?
Old Age Security (OAS) is a crucial government program for Canadian seniors, providing a monthly income that isn’t dependent on your work history. Funded through general tax revenue, OAS is available to eligible seniors to ensure financial support during their retirement years.
This program complements the Canada Pension Plan (CPP) and private savings, helping seniors who may not have earned a significant income or accumulated private pensions.
Overview of OAS Updates in July 2025
| Feature | Details |
|---|---|
| Payment Date | July 28, 2025 |
| Monthly Payment (Ages 65–74) | Up to $727.67 CAD |
| Monthly Payment (Ages 75+) | Up to $800.44 CAD |
| Eligibility Age | 65 years or older |
| Clawback Threshold | Starts at $86,912 CAD |
| Full Elimination Income | $142,609 (65–74), $148,179 (75+) |
| GIS Availability | Yes, for low-income seniors |
| Official Info | Canada.ca – OAS Information |
Who Is Eligible for OAS?
To qualify for OAS, you must meet the following conditions:
- Age: You must be at least 65 years old.
- Residency: You must be a Canadian citizen or legal resident at the time of approval.
- Residence Requirement: You must have lived in Canada for at least 10 years after turning 18.
For those living outside Canada, the eligibility criteria change slightly:
- You must have been a Canadian citizen or legal resident when you left the country.
- You must have lived in Canada for at least 20 years after the age of 18.
OAS Payment Amounts
OAS payments are adjusted quarterly based on inflation. As of July 2025, the maximum monthly OAS payments will be:
- For seniors aged 65–74: Up to $727.67 CAD.
- For seniors aged 75 and over: Up to $800.44 CAD.
Seniors aged 75 and older will receive a higher payment due to increased living and medical costs, a boost introduced in 2022 and maintained through 2025.
What Is the OAS Clawback?
OAS payments are considered taxable income. If your income exceeds a certain threshold, your OAS payments will be reduced through a recovery tax, commonly known as the “clawback”. The clawback thresholds for 2025 are as follows:
- The clawback begins at an income level of $86,912 CAD.
- Full OAS elimination happens at:
- $142,609 CAD for those aged 65 to 74.
- $148,179 CAD for seniors aged 75 and older.
For every dollar over these thresholds, your OAS will be reduced by 15 cents. You must report your OAS payments and total income when filing your annual tax return.
What Is the GIS (Guaranteed Income Supplement)?
The Guaranteed Income Supplement (GIS) is an additional, non-taxable benefit available to low-income seniors who are already receiving OAS. It helps reduce poverty among elderly Canadians by offering monthly financial support based on their income level.
GIS Eligibility
To qualify for GIS, you must:
- Be receiving OAS.
- Have low income (excluding OAS).
Income Limits for GIS (2025)
- Single senior: Income under $21,624 CAD.
- Couple (both on OAS): Combined income under $28,560 CAD.
- Couple (one on OAS): Combined income under $51,840 CAD.
The GIS payment amounts vary based on individual circumstances. You can use the Government of Canada’s online calculator to estimate your GIS eligibility and payment.
How to Apply for OAS
While some seniors are automatically enrolled for OAS, others must apply. It’s recommended to apply six months before your 65th birthday.
Application Process
- Online Application:
- Visit the My Service Canada Account.
- Click on “Apply for OAS”.
- Submit your application directly through the platform.
- By Mail:
- Download the application form from the Canada.ca website.
- Fill out and sign the form.
- Mail it along with required documents (proof of residence, SIN, ID).
Deferring OAS Payments
You have the option to delay your OAS payments past the age of 65. For each month you delay, your monthly payment increases by 0.6%, which totals up to 36% if you delay until age 70. This can be a beneficial option if you expect to continue working or don’t need immediate financial assistance.
With the upcoming changes to the OAS program in July 2025, it’s crucial for seniors to understand the new payment structures, eligibility criteria, and available additional support. Seniors aged 75 and older will receive higher payments, and those in need of extra financial assistance can apply for GIS.
Whether you’re new to OAS or have been receiving it for years, staying informed about these updates will help you secure your financial future during retirement.
FAQs
How much can I receive in OAS payments if I am 75 years old in 2025?
Seniors aged 75 and older will receive up to $800.44 CAD per month starting in July 2025.
What is the GIS, and how can I qualify for it?
The Guaranteed Income Supplement (GIS) is a non-taxable benefit for low-income seniors receiving OAS. To qualify, you must have income below the established limits and be receiving OAS.
Can I delay my OAS payments for a higher monthly amount?
Yes, you can defer your OAS payments until age 70, increasing your monthly payments by 0.6% for each month of delay, up to 36% if delayed until age 70.