Scarlett
If you’re a Canadian resident aged 65 or older and currently receiving Old Age Security (OAS) benefits, get ready for a modest payment increase arriving this July.
The federal government has once again adjusted the OAS payments to reflect inflation, as part of its routine quarterly review.
This guide provides essential information about the updated payment amounts, eligibility rules, and key deposit dates.
Understanding Old Age Security (OAS)
What is OAS?
Old Age Security (OAS) is a monthly pension funded by the federal government, aimed at helping Canadian seniors cover living expenses in retirement. Unlike the Canada Pension Plan (CPP), OAS is available regardless of your employment history.
Eligibility Criteria
To qualify for OAS, applicants must meet the following conditions:
- Be 65 years of age or older
- Have resided in Canada for at least 10 years after age 18
- Be a Canadian citizen or legal resident
For seniors living abroad: You may still qualify if you lived in Canada for at least 20 years as an adult.
Important Note on Clawbacks
Seniors with high annual income may face a partial repayment of their benefits, known as a clawback:
| Age Group | Clawback Starts At Net Income Over |
|---|---|
| 65 to 74 | $148,541 |
| 75 and older | $154,196 |
When Will July 2025 OAS Payments Arrive?
The July 2025 OAS deposit is scheduled for Tuesday, July 29, 2025. This date falls within Service Canada’s regular end-of-month payment window.
- Direct deposit recipients will see the funds in their bank account on the same day.
- Cheque recipients may receive payments by mail around the same time, though postal delays can occur.
Tip: Opting for direct deposit is the most secure and timely method.
What Are the New OAS Payment Amounts?
As of the July–September 2025 quarter, here are the updated monthly maximum payment amounts:
| Age Range | Monthly OAS Payment |
|---|---|
| Ages 65–74 | $734.95 |
| Ages 75 and up | $808.45 |
These new figures reflect a slight increase from the previous quarter. It’s important to note that OAS benefits are reviewed every January, April, July, and October. While rates can go up with inflation, they are never decreased.
Supplemental Benefits: GIS and Allowance
For those who qualify, additional programs like the Guaranteed Income Supplement (GIS) or the Allowance can bring your total benefit to over $1,800 per month, depending on income and household situation.
How to Apply for OAS
Many Canadians are automatically enrolled in OAS and receive notification around their 64th birthday. If you haven’t been enrolled automatically, you can still apply through these options:
- Online via your My Service Canada Account
- Mail-in application form
- In-person at a Service Canada office
You can start collecting OAS any time between age 65 and 70. Delaying your start date increases your monthly payment on a permanent basis.
Is OAS Considered Taxable Income?
Yes, OAS is taxable. Unless you request otherwise, no tax is withheld from your payment. To avoid a tax bill at year-end, you can:
- Set up voluntary tax deductions via your online account
- Submit a written request form
Remaining OAS Payment Dates for 2025
| Month | Deposit Date |
|---|---|
| August | August 27, 2025 |
| September | September 25, 2025 |
| October | October 29, 2025 |
| November | November 26, 2025 |
| December | December 22, 2025 |
Mail delivery may vary slightly, so direct deposit remains the fastest and most reliable option.
With the July 2025 increase in OAS payments, Canadian seniors can expect a small but helpful financial boost.
Whether you’re already enrolled or planning to apply, staying informed about the payment schedule, eligibility requirements, and tax obligations ensures that you can make the most of your Old Age Security benefits. Always consider switching to direct deposit for quicker and safer access to your pension.
FAQs
Will OAS payments go down in the future?
No. OAS payments are never reduced. They are adjusted quarterly based on inflation, but only increased or held steady.
Can I receive OAS if I live outside Canada?
Yes, if you’ve lived in Canada for at least 20 years after age 18, you may qualify for OAS even while living abroad.
Is there a deadline to apply for OAS?
No strict deadline exists, but you can apply as early as 11 months before your 65th birthday. You can choose to delay up to age 70 for higher payments.