Old Age Security in Canada:The Old Age Security (OAS) program in Canada provides monthly financial support to eligible seniors aged 65 and older. For January 2025, the next payment is scheduled for January 29. The benefits range from $727.67 to $800.44, depending on the recipient’s age and income. Keep reading for key details about the OAS payment schedule, eligibility requirements, and benefit adjustments for the upcoming year.
What is Old Age Security (OAS)?
The Old Age Security (OAS) program offers monthly payments to eligible seniors in Canada, ensuring they have a steady income during retirement. Unlike other programs, such as the Canada Pension Plan (CPP), OAS does not require previous employment or contributions. Instead, eligibility is primarily based on age and residency in Canada.
January 2025 OAS Payment Schedule
For those enrolled in OAS, payments are made on the same dates as Canada Pension Plan (CPP) payments. Here are the upcoming payment dates for 2025:
- January 29, 2025
- February 26, 2025
- March 27, 2025
- April 28, 2025
- May 28, 2025
- June 26, 2025
- July 29, 2025
- August 27, 2025
- September 25, 2025
- October 29, 2025
- November 26, 2025
- December 22, 2025
If a payment date falls on a weekend or public holiday, payments are generally issued on the last business day before the weekend or holiday. Payments are typically made via direct deposit.
OAS Eligibility Requirements
To be eligible for OAS benefits, individuals must meet these criteria:
- Age: Be 65 years or older.
- Residency:
- If living in Canada, you must have resided in the country for at least 10 years after turning 18.
- If living outside Canada, you need to have lived in Canada for at least 20 years after turning 18.
- Citizenship: You must be a Canadian citizen or a legal resident at the time of application approval.
Income Clawback (Recovery Tax)
OAS benefits are subject to a clawback (recovery tax) for individuals with a net income exceeding $86,912 (in 2025). For every dollar above this threshold, OAS benefits are reduced by $0.15. If your income exceeds $148,451, your OAS benefits are fully clawed back.
How Much Can You Receive from OAS?
The amount you receive depends on your age:
- Ages 65-74: Up to $727.67 per month.
- Ages 75 and older: Up to $800.44 per month.
OAS benefits are reviewed quarterly and adjusted to reflect inflation, based on changes to the Consumer Price Index (CPI).
How to Apply for OAS
Automatic Enrollment
In many cases, seniors are automatically enrolled in the OAS program. If you are eligible, you should receive a letter from Service Canada after your 64th birthday informing you of your enrollment. If you do not receive this letter, you must apply manually.
Manual Application Process
To apply manually:
- Download the Application Form from the Government of Canada website or visit a Service Canada office.
- Complete the Form and gather any required documents such as proof of citizenship or residency.
- Submit the Application either by mail to Service Canada or in person.
It is recommended to apply at least six months before your 65th birthday, as processing times can vary.
Deferring OAS Payments
You have the option to defer your OAS payments for up to 5 years (60 months) after reaching the eligible age. For each month you delay, your OAS payment increases by 0.6%. By deferring until age 70, you could increase your pension by up to 36%.
For example, if your OAS payment at age 65 is $727.67 per month, deferring until age 70 would increase your monthly payment to approximately $989.63.
Deferring can be beneficial if you expect higher income needs in the future or want to reduce the impact of the income clawback.
Frequently Asked Questions (FAQs)
- How often are OAS payments adjusted?
OAS payments are adjusted quarterly to account for inflation, based on the Consumer Price Index (CPI). - Can I receive OAS if I live outside Canada?
Yes, provided you have lived in Canada for at least 20 years after turning 18. - What happens if my income exceeds the threshold?
If your income surpasses $86,912, your OAS benefits will be reduced. If it exceeds $148,451, your benefits will be fully clawed back. - Can I receive both OAS and CPP?
Yes, OAS and CPP are separate programs, and you can receive benefits from both if you’re eligible. - How do I change my payment method?
You can update your direct deposit information through the My Service Canada Account online portal or by contacting Service Canada.
For more details or to apply, visit the official Government of Canada OAS page. Stay informed to make the most of your OAS benefits in 2025.