OAS Benefit Increase Confirmed: When a person spends his whole life working hard, there comes a time when he needs rest. This is the time of retirement. But rest is possible only when you are financially secure. Keeping this in mind, the Canadian government runs a scheme called Old Age Security (OAS). This is a kind of government pension which is given to the elderly every month.
Now the question arises that what has changed in this scheme in 2025? How much money will be given? Who are entitled to it? How to apply?
What is OAS and why is it important?
Old Age Security i.e. OAS is a government scheme whose aim is to provide financial assistance to people aged 65 years or above. It is especially useful for people who have low incomes or who have worked at home all their lives, such as many women or people who have taken care of their families without pay.
The best part is that you don’t have to prove how many years you worked to qualify for OAS. All you have to do is to satisfy some standards, which include:
- You have to reach at least 65 years of age.
- You should be a personal Canadian citizen or a legal resident.
- You must have lived in Canada for at least 10 years after turning 18.
If you have lived in Canada for 40 years or more, you will receive the full OAS amount. If you have lived for less time, you will receive a smaller amount.
How much money will you receive from OAS in June 2025?
The government reviews the OAS amount every three months and increases it to account for inflation. This helps the elderly to meet their daily needs.
The OAS amount for June 2025 is as follows:
- Ages 65 to 74 – Maximum $727.67 per month
- Ages 75 and older – Maximum $800.44 per month
This increased amount is because the cost of medicines, health care and care increases as you age.
Can you get OAS if you have left Canada?
Many people move to warmer countries or visit family after retirement. Fortunately, OAS can be received by people living outside Canada – provided:
- You were a citizen or legal resident before you left Canada.
- You have lived in Canada for at least 20 years after the age of 18.
What is the benefit of delaying OAS?
If you want, you can start taking OAS a little later than starting at age 65. The special thing about this is that the more you delay, the more your monthly amount will be.
For every month of delay, you will get 0.6% more. That means if you delay OAS till the age of 70, your amount can increase by up to 36%. This option can be beneficial for those who are in good health and want to work for a few more years.
OAS is also taxable!
The government considers the amount received from OAS as your “income”, so it is taxable. You have to include the amount of OAS in it every year while filing your tax.
Clawback – If your income is high then it can be cut
The government gives OAS to everyone, but if your annual income is very high, then the government takes back some part of this money. This is called Clawback.
For 2025, the limits are as follows:
- The deduction starts if your annual income is more than $86,912.
- Those earning $142,609 (for those aged 65-74) and $148,179 (for those aged 75+) stop receiving OAS altogether.
The rate of this deduction is 15%. That is, if your income is $1000 more than the prescribed limit, then $150 will be deducted from OAS.
Special scheme for low income people – Guaranteed Income Supplement (GIS)
Now let’s talk about GIS. This scheme is for those people whose income is very low and who are already receiving OAS. GIS is a kind of extra help which is tax free.
Conditions to get GIS:
- You are receiving OAS.
- Your other income is very low (OAS is not counted in it).
Income limits for GIS in 2025:
| Household status | Maximum annual income (excluding OAS) |
|---|---|
| Seniors living alone | Less than $21,624 |
| Both spouses receiving OAS | Less than $28,560 (combined income) |
| Only one receiving OAS | Less than $51,840 (combined income) |
If you are eligible for GIS, the government gives you some extra money each month. This helps with rent, medications, food and other necessities.
How to apply for OAS and GIS?
You can apply for OAS in two ways:
1. Online (easiest)
- Go to My Service Canada Account (MSCA).
- Fill out and submit the OAS application form.
2. Apply by post
- Download the application form (from the Canada.ca website).
- Attach the required documents, such as proof of citizenship or residence.
- Send it by post to Service Canada.
When to apply?
The most appropriate time should be 6 months in advance before your 65th birthday so that there are no delays in payment. Some may be automatically registered by the government but still it is advisable to log in to MSCA and see.
In short, To make sure this does not happen to you, plan well to have a secure retirement.
Programs such as OAS and GIS entitle the Canadian seniors to have the dignity of living. They come in particular handy to individuals who may not have a very high income or have managed to serve their family or homeland during their lifetime.
Such plans may come of great assistance when setting plans of when retiring. It is possible to make your future years stable and comfortable knowing how much money you will be expected to receive, how much you will pay as tax and whether you will enjoy GIS.
OAS 2025 – Frequently Asked Questions
Q1: What is the Old Age Security (OAS)?
OAS is a pension program, which is handled by the Canadian government and designed to offer monthly financial support to every person until the age of 65 and more, who have low income or who were homemakers.
Q2: What are the simple eligibility requirements to OAS?
You have to be 65+ years old, be a Canadian citizen or a legal resident of Canada who has resided in Canada no less than 10 years after the age of 18.
Q3: What will be my OAS-payment in 2025?
Those aged 65-74 will get up to$727.67 a month and those aged 75+ will get up to $800.44 a month. The sum will be based on years spent in Canada after 18.
Q4: Do I qualify to get OAS when living outside the country?
Yes, when you were a citizen/legal resident you left and you lived at least 20 years in Canada, and you were over 18 years of age, you can get OAS.
Q5: If I do not take OAS immediately after 65 what happens?
The interest charged is 0.6 per cent per month delayed. Waiting till age 70 would permanently add 36 per cent to your monthly rate.
Q6: Does OAS attract tax?
Yes, OAS is an income that is taxable. When it comes to submitting your yearly tax excuse to the government, you will have to claim the entire OAS.
Shreya Singh is a dedicated financial journalist known for her in-depth coverage of government programs and economic updates. She consistently delivers accurate information on U.S. topics such as Stimulus Checks, IRS announcements, and federal relief efforts. Shreya also reports on UK welfare programs, covering developments in Universal Credit, PIP, and DWP news. Her clarity and commitment to trustworthy reporting have earned her a loyal following among readers seeking insightful financial updates.