Planning for retirement involves making informed financial decisions, and understanding the government programs available is essential. One of Canada’s most important retirement income supports is the Old Age Security (OAS) program.
Starting in April 2025, there are significant adjustments to the OAS payment structure, which could influence your retirement income.
In this article, we’ll delve into these changes, the eligibility criteria, and how to ensure you maximize your OAS and Guaranteed Income Supplement (GIS) benefits.
OAS Payment Amounts and Changes for April 2025
For April 2025, the reported figure of $1,615 per month is a combination of both OAS and GIS payments.
The base OAS amount remains consistent, but the GIS, which assists low-income seniors, adds a crucial financial supplement for those who qualify.
It’s important to note that OAS is adjusted for inflation, and the GIS plays a key role in increasing income for eligible seniors.
OAS Payment Breakdown: April 2025
| Category | OAS Amount | Maximum Combined OAS & GIS |
|---|---|---|
| Ages 65-74 | $727.67/month | $1,814.55/month |
| Ages 75+ | $800.44/month | $1,887.32/month |
- Age 65-74: The base OAS payment is $727.67 per month.
- Age 75 and older: The OAS payment increases to $800.44 per month.
- The maximum combined amount (OAS + GIS) for ages 65-74 is $1,814.55, and for ages 75+, it reaches $1,887.32.
What Is the OAS Pension?
The OAS pension is a monthly benefit provided to seniors aged 65 and older. Funded by general tax revenues, it does not require contributions like the Canada Pension Plan (CPP).
Even those who haven’t worked or contributed to CPP can still qualify for OAS based on their residency in Canada.
Current OAS Payment Details (April 2025)
- Ages 65 to 74: $727.67/month
- Ages 75 and above: $800.44/month
The OAS is periodically reviewed and adjusted to reflect inflation, based on changes in the Consumer Price Index (CPI). For April 2025, no adjustment was made since inflation levels were minimal in the previous quarter.
What Is the Guaranteed Income Supplement (GIS)?
The GIS is an additional benefit for low-income seniors who are already receiving OAS. It is non-taxable and significantly increases the monthly income of eligible individuals.
This supplement is designed to assist seniors with limited financial resources.
Maximum GIS Payments (January–March 2025)
- Single seniors: $1,086.88/month
- Couples (both receiving OAS): $654.23/month each
Combined OAS and GIS for April 2025
| Age Group | OAS | GIS | Combined OAS + GIS |
|---|---|---|---|
| Age 65–74 (Single) | $727.67 | $1,086.88 | $1,814.55 |
| Age 75+ (Single) | $800.44 | $1,086.88 | $1,887.32 |
The $1,615 figure is the combined payment for a typical senior who qualifies for both OAS and GIS, with adjustments made based on age.
Eligibility Requirements for OAS and GIS
To be eligible for the OAS pension, you must meet the following criteria:
- Age: Must be 65 or older.
- Residency: Must have lived in Canada for at least 10 years since age 18 to qualify for a partial pension. 40 years of residence after age 18 are needed for full OAS benefits.
- Citizenship or Residency: Must be a Canadian citizen or a legal resident.
For GIS eligibility:
- You must already be receiving OAS.
- Your annual income must be below:
- $22,056 for singles
- $29,136 for couples (both receiving OAS)
OAS Clawback (Recovery Tax) Explained
The OAS clawback applies if your net income exceeds the threshold of $86,912 (as of 2023). If your income is higher, part of your OAS payments will be reduced.
Example of OAS Clawback
If your net income is $96,000:
- Clawback Calculation:
- ($96,000 – $86,912) = $9,088 over the threshold.
- The clawback rate is 15%.
- $9,088 × 15% = $1,363.20 reduction.
The clawback will reduce your OAS benefits during the benefit year, which runs from July 2024 to June 2025.
How to Apply for OAS Payments
You may be automatically enrolled in OAS and will receive a letter from Service Canada. If not, you can apply manually.
Application Methods
- Online: Through the My Service Canada Account.
- Paper: Submit a paper application by mail to Service Canada (application forms are available on the official website).
To avoid delays, apply at least 6 months before reaching age 65.
2025 OAS Payment Dates
The following is the OAS payment schedule for 2025. Make sure to track these dates to stay informed about your monthly deposits:
| Month | Payment Date |
|---|---|
| January | 29 |
| February | 26 |
| March | 27 |
| April | 28 |
| May | 28 |
| June | 26 |
| July | 29 |
| August | 27 |
| September | 25 |
| October | 29 |
| November | 26 |
| December | 22 |
The OAS and GIS programs are vital resources for Canadians in retirement. With the April 2025 adjustments, many seniors can look forward to increased financial support, especially with the combined payments of up to $1,615 for eligible individuals.
Be sure to stay informed about eligibility requirements, income thresholds, and clawback rules to maximize your retirement benefits.