Old Age Security payments are going up 1.4 per cent for October to December, according to new rates posted by the federal government. The maximum monthly OAS pension is now $762.50 for seniors aged 65 to 74 and $838.75 for those 75 and older.
In dollar terms, that is an extra $10.53 a month for the younger group, up from $751.97, and an extra $11.58 a month for those 75 and older, up from $827.17. Over the three months of the quarter, a senior receiving the full amount will collect about $32 to $35 more than in the summer quarter.
The increase is automatic. OAS is indexed to the Consumer Price Index and reviewed every January, April, July and October, according to Canada.ca. The government said this quarter’s adjustment reflects a 3.0 per cent rise in the cost of living over the past year. Daily Hive reported the 1.4 per cent bump is larger than the 1.2 per cent increase that took effect in July.
The Guaranteed Income Supplement, the top-up for low-income seniors, rose by the same rate. Canada.ca lists the new GIS maximum at $1,138.90 a month for a single, widowed or divorced senior with income under $23,112, and $685.56 a month each for a couple who both receive OAS, with combined income under $30,528. For a single senior aged 65 to 74 who qualifies for the full GIS, combined OAS and GIS deposits now come to just over $1,900 a month.
The three payment dates this quarter are Oct. 28, Nov. 26 and Dec. 22, according to published federal payment schedules. December’s deposit comes earlier than usual because of the holidays.
Not everyone gets the full amount. The OAS pension is reduced for higher earners through the recovery tax, often called the clawback, and disappears entirely once net income reaches $152,062 for 65- to 74-year-olds and $157,923 for those 75 and older, according to Canada.ca. The pension is also prorated for people who lived in Canada for fewer than 40 years after age 18, which matters for many immigrant seniors, who may receive a partial pension and lean more heavily on the GIS.
This story is not only for retirees. Many Canadians in their 20s and 30s help parents or grandparents manage benefits, and the GIS in particular is often missed. Service Canada enrols many seniors automatically, but the GIS depends on filing a tax return every year. A senior who stops filing, or who never filed after arriving in Canada, can lose the supplement without realizing it. If an older relative has a low income, checking their My Service Canada Account, or helping them file a return, may be worth more than this quarter’s increase.
The increase also puts a number on how fast prices are rising. A 3.0 per cent annual rise in the CPI means seniors on fixed incomes are being made whole on paper, but food and rent can climb faster than the overall index. Indexing protects the purchasing power of the benefit on average, not for every household.
The next review of OAS rates is due in January 2027, when the government will again adjust payments based on the latest inflation data.
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Sources: Government of Canada, OAS payment amounts; via Daily Hive. Featured image: file photo of two adults walking in a park (Unsplash), not the people in this story.
