$735 Monthly OAS Boost Confirmed for Seniors, Full Eligibility and Dates

Canadian seniors are set to see a modest but welcome increase in their Old Age Security (OAS) benefits this summer. Starting in July 2025, monthly OAS payments will rise by about 1%, providing a small but meaningful cushion against rising living costs.

Those aged 65 to 74 will now receive \$735.35 per month, while seniors 75 and older will get \$808.44 monthly, reflecting the 10% permanent increase introduced for that age group in 2022. While not a dramatic change, the adjustment reflects the government’s ongoing efforts to shield retirees from the impact of inflation.

For many older Canadians on fixed incomes, even a small bump helps cover the growing costs of groceries, rent, healthcare, and daily living expenses. Here’s what seniors need to know about the latest increase, eligibility, payment schedules, and strategies to maximize their retirement income.

Why OAS Payments Are Increasing in July 2025

The Old Age Security program is tied to the Consumer Price Index (CPI), meaning benefits are adjusted quarterly to reflect inflation trends. This ensures that payments maintain their value in real terms and don’t erode as prices rise.

From July to September 2025, the increase is calculated at 1.0%, representing a 2.3% jump compared to July 2024. While modest, it highlights Canada’s commitment to helping seniors manage affordability challenges.

The OAS system is designed to provide:

• Automatic indexing to inflation, protecting seniors’ purchasing power.
• Quarterly adjustments (January, April, July, October).
• A 10% permanent increase for those aged 75 and older.

Breakdown of the July 2025 OAS Payments

Here’s what the updated monthly payments will look like beginning July:

Age Group	Monthly OAS (July 2025)
65 to 74	\$735.35
75 and older	\$808.44 (includes 10% boost)

That translates into annual OAS income of about \$8,824.20 for those aged 65–74, and \$9,701.28 for those 75 and over.

While it may not fully keep pace with rising housing or healthcare costs, it is a consistent and guaranteed source of income that forms the backbone of Canada’s retirement income system.

Who Is Eligible for OAS in 2025?

Eligibility for OAS is straightforward but requires certain residency and age conditions. To qualify:

• You must be 65 years of age or older.
• You must be a Canadian citizen or legal resident at the time of approval.
• You must have lived in Canada for at least 10 years since age 18.

Additional points:

• Many seniors are enrolled automatically, but those turning 65 should confirm through My Service Canada Account (MSCA).
• If you’ve lived outside Canada, you may still qualify depending on residency rules and international social security agreements.

Extra Supports Linked to OAS

For many seniors, OAS is only one part of their retirement income. If your income is low, you may also qualify for additional benefits:

• Guaranteed Income Supplement (GIS): For low-income OAS recipients.
• Allowance: For low-income spouses aged 60–64 of GIS recipients.
• Allowance for the Survivor: For low-income widows or widowers aged 60–64.

These supplements can add hundreds of dollars to monthly income and are non-taxable, making them especially valuable for vulnerable seniors.

When to Expect July 2025 OAS Payments

OAS payments are issued on the third-to-last business day of each month. For July 2025, seniors can expect deposits between July 27 and July 29, depending on their bank.

• Direct deposit is the fastest and most reliable option.
• Those receiving paper cheques may face slight delays due to postal delivery.

It’s recommended that seniors check their MSCA portal to confirm their payment schedule and ensure banking information is up to date.

Taxation of OAS Payments

One key detail many seniors forget: OAS is taxable income. This means you must report it on your annual tax return.

• Taxes are not automatically deducted unless you request withholdings.
• Without planning, you may face a surprise tax bill at the end of the year.

Another important feature is the OAS Clawback (officially called the OAS Recovery Tax). For 2025:

• If your annual income exceeds \$90,997, OAS payments begin to reduce.
• For those aged 65–74, benefits are fully clawed back at incomes above \$148,541.
• For those 75 and older, payments are eliminated once income surpasses \$154,196.

Strategies to Maximize Your OAS Income

Seniors approaching 65 should consider several strategies to make the most of OAS:

• Delay Payments: You can defer OAS for up to 5 years. Payments increase by 0.6% per month, up to a maximum of 36%. This is useful if you expect higher future costs or are still working.
• Coordinate with CPP: Balancing OAS and CPP can help optimize retirement income.
• Tax Planning: Consider income-splitting strategies with a spouse to avoid triggering the clawback.
• Check for Supplements: Apply for GIS or Allowance if your income is low.

For many retirees, consulting with a financial planner ensures you are not missing out on additional supports.

Why Every Dollar Counts for Seniors

Even though the July 2025 increase is relatively small, it matters. Rising food prices, rent, and healthcare costs continue to strain retirees. For many living solely on OAS and GIS, every dollar is crucial.

The adjustment is part of a broader recognition that Canada’s senior population is growing rapidly, and financial pressures are mounting. Ensuring predictable, inflation-indexed income is a key way the federal government supports older Canadians.

5 FAQs

Q1: How much will OAS be in July 2025?
Seniors aged 65–74 will receive \$735.35 per month, while those 75+ will get \$808.44 monthly.

Q2: Is OAS taxable?
Yes, OAS is taxable income. Seniors must report it on their annual tax return, and taxes are not automatically deducted unless requested.

Q3: What is the OAS clawback in 2025?
OAS begins to reduce once annual income exceeds \$90,997 and is fully clawed back above \$148,541 (65–74) or \$154,196 (75+).

Q4: Can I delay OAS payments?
Yes. OAS can be deferred up to five years, inreasing payments by 0.6% per month (up to 36%).

Q5: When are July 2025 payments arriving?
Payments will be issued between July 27–29, 2025, depending on your bank and whether you use direct deposit.