Canadian seniors can look forward to a 0.7% increase in their Old Age Security (OAS) payments for the October to December 2025 quarter. This adjustment, effective from October 29, 2025, reflects the government’s commitment to helping older Canadians keep pace with the rising cost of living.
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OAS Payment Date – October 2025
All eligible seniors will receive their OAS payments on Wednesday, October 29, 2025. Payments will be issued via direct deposit for most recipients. Those who receive paper cheques may experience a slight delay.
New OAS Payment Rates (Effective October 2025)
The 0.7% increase is based on the Consumer Price Index (CPI), which measures inflation. This adjustment ensures that OAS payments align with the rising cost of goods and services.
New Monthly OAS Amounts:
- Ages 65–74: $740.08
- Ages 75 and older: $814.09
Seniors aged 75 and older receive a higher amount due to an additional 10% increase applied to their OAS pension.
Understanding the OAS Clawback (Recovery Tax)
The OAS clawback, officially known as the Recovery Tax, reduces OAS payments for high-income seniors. For the July 2025 – June 2026 benefit year, the thresholds are:
- Ages 65–74: OAS payments begin to decrease when net annual income exceeds $93,454 and are fully eliminated at $151,775.
- Ages 75 and older: The thresholds are slightly higher due to the increased base amount.
Seniors should report their income accurately to ensure proper adjustment of their OAS payments.
Eligibility Requirements for OAS
To qualify for OAS, seniors must:
- 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 the age of 18.
- To receive the full OAS pension, 40 years of Canadian residency are required.
- Seniors living abroad must have at least 20 years of Canadian residency after turning 18.
Why This Increase Matters
While a 0.7% increase may seem modest, it plays a crucial role in helping seniors maintain their purchasing power amid rising living costs. Every adjustment, no matter how small, contributes to covering essential expenses such as groceries, utilities, and healthcare.
Key Takeaways
- Payment Date: October 29, 2025
- New Rates:
- $740.08 for ages 65–74
- $814.09 for ages 75 and older
- Clawback Thresholds:
- $93,454 to $151,775 (ages 65–74)
- Slightly higher for ages 75 and older
- Eligibility: Based on age, citizenship, and residency requirements
Seniors do not need to reapply for the OAS increase; it will be applied automatically. Ensuring that your direct deposit information is up to date with Service Canada will help avoid any delays in receiving your payment.