The Old Age Security (OAS) program has seen significant changes in April 2025, with increased payment amounts and revised eligibility criteria.
This comprehensive guide outlines everything Canadian seniors need to know about the recent boost to OAS payments, including who qualifies, how to apply, and important deadlines to remember.
Understanding the OAS Program
The Old Age Security pension is one of Canada’s most important retirement income sources, providing monthly payments to eligible seniors.
Unlike the Canada Pension Plan (CPP), OAS is funded through general tax revenues and doesn’t require direct contributions from recipients during their working years.
April 2025 OAS Payment Boost
The Canadian government has implemented a substantial increase to OAS payments starting April 2025.
This boost reflects both the regular quarterly indexation to account for inflation and a special supplementary increase aimed at improving financial security for Canadian seniors.
New Payment Amounts
As of April 2025, the maximum monthly OAS payment has increased to $756.89 for seniors aged 65-74, representing a 3.2% increase from the previous quarter.
For those aged 75 and older, the maximum monthly payment is now $833.17, maintaining the 10% differential introduced in 2022.
These amounts apply to seniors who meet the full residency requirements and whose annual income falls below the established thresholds.
Eligibility Requirements
To qualify for the boosted OAS payments, you must:
- Be 65 years of age or older
- Be a Canadian citizen or legal resident at the time your OAS application is approved
- Have resided in Canada for at least 10 years after turning 18
- For full benefits, have resided in Canada for at least 40 years after turning 18
Residency Requirements Explained
The amount of your OAS pension is determined by how long you’ve lived in Canada after age 18. If you’ve lived in Canada for at least 40 years after turning 18, you qualify for a full OAS pension.
If you’ve lived in Canada for less time, you may receive a partial pension calculated at 1/40th of the full pension amount for each complete year of residency.
Income Thresholds and Clawback
The OAS program includes an income-testing mechanism known as the “recovery tax” or “clawback.” For the 2024-2025 benefit year, the income threshold at which the clawback begins is $90,997.
For every dollar of income above this threshold, your OAS pension is reduced by 15 cents, up to the point where your entire OAS pension can be clawed back if your income exceeds $147,826.
Automatic Enrollment vs. Application Process
Automatic Enrollment
Service Canada automatically enrolls many eligible seniors for OAS. You may receive a notification letter about a month after you turn 64, informing you that you’ve been enrolled automatically.
You’ll be automatically enrolled if:
- You’re 64 years old (as of April 2025)
- You currently live in Canada
- You’ve participated in the CPP program
- Your address information is up to date with the CRA
Application Process for Those Not Automatically Enrolled
If you don’t receive an automatic enrollment letter, you’ll need to apply for OAS. This applies to:
- People who live outside Canada
- Those who haven’t contributed to CPP
- Recent immigrants who meet the residency requirements
- Those who want to defer their OAS pension
How to Apply
- Online Application: The most efficient method is to apply through your My Service Canada Account (MSCA).
- Paper Application: Form ISP-3550 (Application for the Old Age Security Pension) can be downloaded from the Service Canada website or obtained at a Service Canada office.
- In-Person Application: Visit your local Service Canada office for assistance with your application.
Required Documentation
When applying, be prepared to provide:
- Proof of birth (birth certificate or passport)
- Proof of Canadian citizenship or legal residence status
- Social Insurance Number (SIN)
- Banking information for direct deposit
- Documentation of residency history if you’ve lived outside Canada
OAS Pension Deferral Option
You can choose to defer your OAS pension for up to 60 months (5 years) past the age of 65. For each month you defer, your monthly payment increases by 0.6%, for a maximum increase of 36% if you defer for the full 5 years.
The April 2025 boost applies to deferred pensions as well, with proportional increases based on your deferral period.
Guaranteed Income Supplement (GIS)
The Guaranteed Income Supplement is available to low-income OAS recipients. The GIS has also seen an increase in April 2025, with maximum monthly payments now at:
- $1,058.47 for single, widowed, or divorced pensioners
- $637.92 per person for couples where both receive OAS
- $1,058.47 for couples where only one person receives OAS and the other is not receiving an Allowance
GIS Eligibility
To qualify for GIS:
- You must be receiving OAS
- Your annual income (or combined income if you have a spouse or common-law partner) must be below specified thresholds
- You must reside in Canada
Unlike OAS, GIS is not subject to international agreements and is only payable while you reside in Canada.
International Agreements and OAS
Canada has social security agreements with many countries that may help you qualify for OAS even if you don’t meet the standard residency requirements.
These agreements allow for the totalization of periods of residence and/or contributions in both countries.
If you’ve lived or worked in another country, contact Service Canada to determine if a social security agreement might help you qualify for benefits.
April 2025 Special Initiatives
Digital Application Enhancement
As of April 2025, Service Canada has launched an enhanced digital application platform for OAS, making the process more streamlined and accessible. The new system includes features like:
- Step-by-step application guidance
- Ability to save and resume applications
- Document upload functionality
- Real-time application status updates
- Automated eligibility checks
Senior Support Program
Alongside the payment boost, the government has introduced the Senior Support Program, offering assistance to seniors navigating the OAS system. This program provides:
- One-on-one application assistance
- Translation services for newcomers
- Digital literacy support for online applications
- Outreach services for homebound seniors
Important Deadlines and Dates
- April 27, 2025: Payment date for April OAS benefits
- May 28, 2025: Payment date for May OAS benefits
- June 26, 2025: Payment date for June OAS benefits
- July 1, 2025: Next quarterly adjustment to OAS payment amounts
- October 2025: Annual renewal period for GIS recipients
For those turning 65 in the coming months, remember that you can apply for OAS up to 11 months before your 65th birthday.
Tips for Maximizing Your OAS Benefits
- Consider deferral: If you’re still working or have other sources of income, deferring your OAS pension can significantly increase your future payments.
- Income splitting: Pension income splitting with a spouse or common-law partner can help reduce the OAS clawback.
- Strategic RRSP/RRIF withdrawals: Planning your retirement income to manage the OAS clawback threshold can maximize your benefits.
- Review international agreements: If you’ve lived or worked abroad, investigate if any international agreements might help you qualify for additional benefits.
- Stay informed about changes: Keep up with quarterly adjustments and policy changes that might affect your benefits.
How to Contact Service Canada
For specific questions about your OAS situation:
- Phone: 1-800-277-9914 (toll-free within Canada and the United States)
- TTY: 1-800-255-4786 (for people with hearing or speech impairments)
- In-person: Visit your local Service Canada office
- Online: Access your My Service Canada Account at canada.ca/my-service-canada-account
The April 2025 boost to OAS payments represents a significant improvement in financial support for Canadian seniors
. By understanding the eligibility requirements, application process, and supplementary benefits like GIS, seniors can ensure they receive all the benefits they’re entitled to.
Whether you’re approaching retirement age or are already receiving OAS, staying informed about these changes will help you maximize your benefits and maintain financial security throughout your retirement years.
