As the cost of living continues to rise across Canada, seniors depending on government pensions for stability are set to receive a modest but meaningful increase in their Old Age Security (OAS) payments. Starting in October 2025, eligible seniors aged 75 and older will begin receiving up to $814.09 per month, marking the latest quarterly adjustment tied to Canada’s inflation rate.
The change, while small in percentage terms, arrives at a critical time when prices for food, housing, utilities, and healthcare remain stubbornly high. Here’s a comprehensive breakdown of who qualifies, how the payment amounts are calculated, and why this latest OAS increase matters now more than ever.
What Is Old Age Security (OAS)?
The Old Age Security program is one of Canada’s core retirement income pillars, providing monthly payments to seniors aged 65 and older. Unlike the Canada Pension Plan (CPP)—which is based on employment history and contributions—OAS is funded entirely by general tax revenues and is not tied to prior work income.
The benefit is intended to offer basic income support to retirees and is adjusted quarterly to account for changes in the Consumer Price Index (CPI), protecting seniors from inflation.
October 2025 OAS Rate Increase: What’s Changing?
The federal government conducts quarterly reviews of OAS benefit levels. For the October to December 2025 period, payments are increasing by 0.7%, based on the latest CPI data. Here’s what the updated OAS rates look like:
| Age Group | Previous Monthly Payment | New Monthly Payment (Oct 2025) |
|---|---|---|
| Ages 65 to 74 | \$734.95 | \$740.09 |
| Ages 75 and older | \$808.48 | \$814.09 |
These payments will begin with the October 29, 2025 deposit and will apply until the next CPI adjustment in January 2026.
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Why the October 2025 Increase Matters
Though a 0.7% increase may appear minor, it comes during a period when Canadian seniors are grappling with higher grocery bills, rent spikes, and rising prescription costs. For those on fixed incomes, every dollar helps.
This increase also reaffirms the government’s commitment to indexing OAS benefits to inflation, ensuring seniors’ purchasing power isn’t eroded by price surges. Combined with CPP and the Guaranteed Income Supplement (GIS), OAS plays a critical role in retirement security for millions of Canadians.
Who Qualifies for OAS in 2025?
Eligibility for OAS remains unchanged in 2025, but payment amounts and income thresholds are updated annually. Here are the key requirements:
Age
- Must be 65 years or older
- Higher OAS payments apply to those aged 75 and above
Residency
- Must be a Canadian citizen or legal resident at the time of application approval
- Must have lived in Canada for at least 10 years after turning 18 to receive a partial pension
- To receive the full OAS pension, you must have resided in Canada for 40 years after age 18
Canadians Living Abroad
- Must have resided in Canada for at least 20 years after age 18 to continue receiving OAS while living outside the country
October–December 2025 OAS Payment Dates
The updated OAS benefit will be paid on the following confirmed dates:
| Month | Payment Date |
|---|---|
| October 2025 | Wednesday, October 29 |
| November 2025 | Wednesday, November 26 |
| December 2025 | Monday, December 22 |
Those receiving direct deposit will see the funds in their account the same day. Paper cheque recipients may experience delays depending on Canada Post delivery schedules.
OAS Clawback Thresholds for 2025–2026
Seniors with high annual incomes should be aware of the OAS Recovery Tax, commonly known as the clawback. This is a partial or full repayment of OAS for individuals earning above a certain income threshold.
Clawback Details (Benefit Year: July 2025 – June 2026)
| Income Range | Impact on OAS Payments |
|---|---|
| Above \$93,454 | OAS begins to be reduced |
| Above \$151,775 (age 65–74) | OAS is fully clawed back |
| Higher cap for age 75+ | Due to the higher OAS max payment |
This clawback applies automatically when filing taxes. Seniors should review their net income and consult a tax professional to understand if their OAS benefit may be impacted.
How OAS Is Adjusted: The Role of CPI
The Consumer Price Index (CPI) measures average changes in prices for common goods and services. Every January, April, July, and October, OAS payments are reviewed and adjusted based on the CPI for the previous quarter.
If inflation rises, OAS increases. If CPI falls, OAS remains the same—it is never reduced.
This quarterly indexation protects seniors from the erosion of their retirement income due to inflation. It’s one of the strongest automatic features in Canada’s retirement system.
How OAS Interacts with CPP and GIS
Most seniors rely on a combination of benefits for income in retirement:
Canada Pension Plan (CPP)
- Based on work history and contributions
- Can be claimed from age 60 (reduced) or delayed up to age 70 (increased)
Guaranteed Income Supplement (GIS)
- Available to low-income OAS recipients
- GIS is income-tested and provides additional monthly support
The recent OAS increase—though small—plays a role in bolstering overall financial stability, especially when combined with GIS for lower-income seniors.
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Common Mistakes That Could Delay OAS Payments
While most OAS payments are processed smoothly, here are a few common reasons seniors may experience delays or reductions:
- Missing direct deposit information
- Incorrect tax filings triggering unintended clawbacks
- Failing to update residency or marital status
- Delays in confirming age or eligibility documentation
Seniors are advised to check their CRA My Account portal regularly and keep their information up to date.
How to Apply for OAS If You’re Turning 65 in 2025
Seniors approaching age 65 should apply for OAS well in advance of their birthday month. In some cases, automatic enrollment applies, but not always.
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Steps to Apply:
- Log into your CRA My Account
- Review your automatic enrollment notice, if available
- If not automatically enrolled:
- Submit an OAS application form online or by mail
- Include proof of age and residency history
- Await a Notice of Entitlement confirming your payment amount and start date
It’s best to apply 6 months before turning 65 to avoid processing delays.
Summary: What Seniors Should Know About the October 2025 OAS Payment
| Key Feature | Details |
|---|---|
| New Max Monthly OAS (75+) | \$814.09 |
| New Max Monthly OAS (65–74) | \$740.09 |
| Payment Adjustment Date | October 29, 2025 |
| CPI Adjustment | 0.7% for Q4 2025 |
| Clawback Threshold Begins At | \$93,454 annual net income |
| Full Clawback (65–74) | \$151,775 and above |
| Eligibility | Age 65+, residency, income-dependent |
5 SEO-Friendly FAQs
Q1: When will the new \$814.09 OAS payment be deposited?
The new OAS payments begin on October 29, 2025. Seniors receiving direct deposit will see the funds that same day.
Q2: Who qualifies for the \$814.09 monthly OAS payment?
Canadians aged 75 and older who meet the residency and income criteria are eligible for the maximum OAS amount.
Q3: What causes OAS payments to increase?
OAS payments are adjusted quarterly based on the Consumer Price Index (CPI) to keep pace with inflation.
Q4: At what income level does the OAS clawback begin in 2025?
The clawback starts when annual net income exceeds \$93,454. Full clawback occurs at \$151,775 for seniors aged 65–74.
Q5: Can OAS be received outside Canada?
Yes, if you’ve lived in Canada for at least 20 years after turning 18, you can receive OAS payments while living abroad.
