For millions of Canadians aged 65 and older, Old Age Security (OAS) is a vital source of retirement income. This July, there’s extra cause to celebrate: quarterly indexation has led to a boosted payment for the July–September 2025 period.
Whether you’re a new recipient or have received OAS for years, now is the moment to stay informed and ensure you’re receiving the correct amount.
What is OAS and Who Qualifies?
Old Age Security is a monthly federal pension available to Canadians aged 65 or older, regardless of work history. Eligibility requirements include:
- Being 65 or older
- Having lived in Canada for at least 10 years after age 18 (for residents)
- Or 20 years if living abroad, for those who moved
- Holding Canadian citizenship or permanent residence
Note: High-income seniors may face a recovery tax (“clawback”) on OAS if net income exceeds $148,541 (age 65–74) or $154,196 (75+).
When Will July’s OAS Payment Arrive?
The July 2025 OAS payment is scheduled for Tuesday, July 29, 2025:
- Direct deposit recipients will receive funds on the same day.
- Cheque recipients should expect delivery by end of the month—opt for direct deposit to avoid delays.
Ensure your account information is current in your My Service Canada Account (MSCA) for reliable delivery.
How Much Is the Payment?
Thanks to quarterly indexation (January, April, July, October), July’s OAS amounts have increased:
| Age Group | Previous OAS Monthly | July 2025 OAS Monthly |
|---|---|---|
| 65–74 | ~$713.34 | $734.95 |
| 75+ | ~$784.67 | $808.45 |
These increases help seniors keep pace with inflation. With Guaranteed Income Supplement (GIS) and Allowance, total benefits may exceed $1,800 per month, depending on income and marital status.
The Significance of This Increase
OAS payments are adjusted to reflect economic conditions. Although increases each quarter are modest, they accumulate and offset rising costs of food, utilities, and health care.
For low-income seniors or those solely dependent on pension income, even a small boost like this is meaningful.
Maximizing Your OAS
To ensure you receive the correct amount:
- Stay enrolled: If you haven’t applied yet, enroll via MSCA, mail, or by visiting a Service Canada office.
- Choose direct deposit: Simplify payment delivery and avoid mail delays.
- Consider deferral: Postpone OAS up to age 70 to increase monthly payments—up to 36% more.
- Manage taxes: OAS counts as taxable income. Opt into withholding via MSCA to avoid liabilities.
OAS’s Role in Your Retirement Portfolio
OAS is not just a monthly stipend—it forms a core part of retirement income. Together with GIS, Canada Pension Plan (CPP), and other savings, it contributes to a sustainable retirement budget. Here’s a quick snapshot:
| Component | Monthly Amount July 2025 |
|---|---|
| Old Age Security (OAS) | $734.95 – $808.45 |
| Guaranteed Income Supplement (GIS) | Up to $1,065.47 (single) |
| Total (for eligible seniors) | Over $1,800 with combined benefits |
July 29, 2025 brings welcomed news for Canadian retirees: a modest but meaningful raise in OAS payments. With enhanced benefits for those 75 and up, and the potential for combined OAS+GIS payments exceeding $1,800 monthly, this update provides essential inflation relief.
Take time to verify your eligibility, update direct deposit, and explore options like deferral or GIS enrollment. This quarter’s increase is a reminder: stay proactive, stay secure, and enjoy the benefits you’ve earned.
FAQs
Do I qualify for the increased OAS rate?
If you’re 65 or older, meet residency requirements, and are already receiving OAS, you will automatically get the new amount for July–September. No action needed.
Will OAS be taxable?
Yes, OAS counts as taxable income. You may receive a tax bill if your income exceeds your personal allowance. Consider opting for tax withholding through your MSCA.
Can I defer OAS and get more later?
Absolutely. You can delay OAS up to age 70, increasing your monthly payment by up to 36%. Those focused on long-term income might benefit from this strategy.