The Old Age Security (OAS) program is one of the cornerstone benefits for Canadian seniors, providing guaranteed monthly payments to those aged 65 and above. Funded through general government revenues and administered by Service Canada, OAS ensures that retirees across the country have a steady income to rely on in their later years.
Starting October 2025, OAS payments will see a 0.7% increase, helping seniors keep pace with rising prices for essential goods and services. This increase is part of the federal government’s quarterly inflation adjustment, tied directly to the Consumer Price Index (CPI).
What Is the Old Age Security (OAS) Program?
The OAS pension is Canada’s largest public pension program, available to seniors who meet age and residency requirements. Unlike the Canada Pension Plan (CPP), which is based on an individual’s work and contributions, OAS is a non-contributory pension—meaning seniors do not need to pay into it during their working lives.
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Instead, OAS is funded through general tax revenues, ensuring that all eligible seniors, regardless of work history, receive support once they turn 65. It is often combined with CPP and the Guaranteed Income Supplement (GIS) to create a more stable retirement income.
New OAS Payment Rates for October–December 2025
The federal government reviews OAS rates every three months and adjusts them based on inflation trends. For the October to December 2025 quarter, OAS payments will increase by 0.7%, marking another boost in senior benefits.
- Seniors aged 65–74: Maximum monthly payment increases from $734.95 to $740.
- Seniors aged 75 and older: Maximum monthly payment increases to $814.09, reflecting the higher supplement introduced for this age group.
This means seniors will see higher deposits beginning October 29, 2025, with payments continuing on the updated schedule for the rest of the year.
OAS Payment Schedule – October to December 2025
OAS payments are issued monthly, and the dates for the final quarter of 2025 have already been confirmed:
- October 29, 2025
- November 26, 2025
- December 22, 2025
Those registered for direct deposit will see funds in their bank accounts the same day, while paper cheques may take longer depending on postal delivery times.
Who Qualifies for OAS in 2025?
To qualify for OAS in 2025, seniors must meet the following conditions:
- Be 65 years of age or older.
- Be a Canadian citizen or legal resident at the time of approval.
- Have lived in Canada for at least 10 years after age 18 (for a partial pension).
- For a full pension, seniors must have lived in Canada for 40 years after age 18.
- For Canadians living abroad, at least 20 years of Canadian residency after age 18 is required to continue receiving OAS.
Eligibility rules remain the same in 2025, though payment amounts and income thresholds are updated annually.
Understanding the OAS Clawback (Recovery Tax)
While OAS is meant to provide universal support, higher-income seniors may face a reduction in payments under the OAS recovery tax, commonly known as the clawback.
For the July 2025 – June 2026 benefit year:
- OAS payments begin to be reduced once annual net income exceeds $93,454.
- Payments are completely eliminated at $151,775 for seniors aged 65–74.
- Seniors 75 and older have a slightly higher clawback ceiling because their maximum OAS payment is higher.
This system ensures that OAS remains a progressive benefit, targeting those who need it most while scaling back support for wealthier retirees.
Why the October 2025 OAS Increase Matters
Although the 0.7% increase may seem modest, it comes at a critical time. Seniors across Canada continue to face higher food, rent, utility, and healthcare costs. For those living on fixed incomes, even small increases help offset financial pressures.
By indexing OAS to the Consumer Price Index, the government ensures that seniors’ purchasing power is preserved. Without these adjustments, retirees would see their benefits lose value over time due to inflation.
How OAS Fits Into Canada’s Retirement System
OAS is just one piece of the broader retirement income system in Canada, which also includes:
- Canada Pension Plan (CPP): Earnings-based pension.
- Guaranteed Income Supplement (GIS): Extra support for low-income seniors.
- Provincial and Territorial Benefits: Additional housing, healthcare, or tax relief programs.
Together, these programs form a multi-layered safety net, ensuring that seniors can enjoy financial stability in retirement.
Key Takeaways for October 2025 OAS Payment
- New maximum monthly OAS rate: $814.09 (ages 75+) and $740 (ages 65–74).
- Payment date: October 29, 2025, with additional deposits on November 26 and December 22.
- Adjustment: 0.7% CPI increase for the October–December quarter.
- Eligibility: Age, residency, and income rules remain unchanged.
- Clawback: Reductions start at $93,454 in annual net income.
FAQs – OAS Increase October 2025
Q1: How much will OAS payments increase in October 2025?
Payments will rise by 0.7%, with seniors aged 65–74 receiving up to $740 monthly, and those aged 75+ receiving up to $814.09.
Q2: When will seniors receive the October 2025 OAS payment?
The payment is scheduled for Wednesday, October 29, 2025.
Q3: Who qualifies for OAS in 2025?
Any senior aged 65+ who is a Canadian citizen or legal resident and meets the minimum residency requirements (10 years for partial, 40 years for full pension).
Q4: What is the OAS clawback threshold for 2025–26?
OAS is reduced for individuals with annual net incomes above $93,454 and eliminated at $151,775 for those aged 65–74.
Q5: How does OAS differ from CPP?
OAS is a non-contributory benefit funded by taxes and based on residency, while CPP is contribution-based, depending on your work history and pensionable earnings.
