In a welcome move for aging Canadians, the federal government has confirmed a $2,350 Old Age Security (OAS) boost in 2025, offering financial relief to millions of low- and moderate-income seniors. This increase is intended to help seniors keep pace with rising living costs, inflation, and healthcare expenses.
The Canada Revenue Agency (CRA) and Employment and Social Development Canada (ESDC) are working together to ensure this OAS enhancement is distributed fairly and automatically to eligible recipients across the country.
Here’s everything you need to know about eligibility, payment schedule, and key updates related to the $2,350 OAS boost in 2025.
What Is the $2,350 OAS Boost in 2025?
The $2,350 OAS boost is an annual increase to the Old Age Security pension, targeted at Canadians aged 65 and older. This additional amount comes from scheduled indexation to inflation, as well as federal budgetary decisions to provide greater financial support to seniors facing rising expenses.
The OAS increase also aligns with the government’s ongoing efforts to strengthen retirement income security and reduce senior poverty.
Eligibility Criteria for the OAS Increase
To qualify for the $2,350 boost in 2025, individuals must meet the following criteria:
- Age: Must be 65 years or older as of the payment year.
- Residency: Must be a Canadian citizen or legal resident.
- Years of Residency: Must have lived in Canada for at least 10 years after turning 18.
- Income Thresholds:
- Full OAS is reduced for individuals with net annual income over $90,997 (as of 2024).
- The clawback ends at income levels around $148,000.
Note: Those already receiving Guaranteed Income Supplement (GIS) may benefit more from the combined increases.
Payment Schedule for the $2,350 OAS Boost
The enhanced OAS payments will be automatically added to monthly pension disbursements in quarterly phases throughout 2025, depending on when adjustments are finalized by the federal government.
OAS Boost 2025 Payment Details
| Category | Details |
|---|---|
| Total Boost Amount | $2,350 (annual increase) |
| Monthly Increase | Approx. $195.83/month |
| Eligibility Age | 65+ |
| Payment Start Date | Q1 or Q2 2025 (subject to government notice) |
| Payment Method | Direct deposit or mailed cheque |
| Adjusted by | CPI (Consumer Price Index) + Federal Top-Up |
Payments will appear under the “OAS Pension” section in your CRA or My Service Canada account and will be updated automatically.
How to Receive the OAS Boost
You do not need to apply separately if you’re already receiving OAS. Follow these steps to ensure smooth delivery:
- Keep your tax filings up to date, especially your 2024 return.
- Ensure your direct deposit info is correct with CRA and Service Canada.
- Monitor your CRA and My Service Canada accounts for updates and notices.
- If you’re turning 65 in 2025, apply for OAS at least 6 months before your birthday.
Why the OAS Boost Matters
This $2,350 annual increase is crucial for many seniors, especially those living on fixed incomes. With inflation affecting everything from groceries to medication, the boost helps offset:
- Housing and utility costs
- Prescription drug and medical bills
- Transportation and food expenses
- Personal support services
For seniors receiving GIS or CPP alongside OAS, this boost ensures they can better maintain their standard of living in a rapidly changing economy.
The $2,350 OAS boost for Canadian seniors in 2025 is more than just a routine adjustment—it’s a vital measure to help aging citizens navigate a high-cost environment.
If you’re 65 or older, or approaching retirement, ensure your information with CRA and Service Canada is up to date to receive the full benefit. The government’s investment in OAS demonstrates its commitment to seniors’ financial security in the years ahead.
FAQs
Will I need to apply for the OAS boost in 2025?
No. If you’re already receiving OAS, the increase will be automatically applied to your monthly payments.
When will the $2,350 OAS boost be paid out?
The increase will be spread across monthly payments, starting as early as Q1 or Q2 of 2025, depending on your eligibility.
Will the OAS boost affect my GIS or CPP payments?
Not directly. However, the combined income may impact GIS eligibility, so check your annual income threshold carefully.