The Canada Revenue Agency (CRA) has officially confirmed a $742 annual boost to the Old Age Security (OAS) payments starting in 2025, providing much-needed financial support to millions of Canadian seniors.Rather than a one-time lump sum, this increase will be distributed through quarterly enhancements in monthly OAS payments, ensuring steady income growth in response to inflation pressures.
This article offers a detailed breakdown of the OAS boost, explaining who qualifies, how the increase is calculated and paid, the monthly payment schedule for 2025, and essential financial planning considerations for seniors and their families.
What Is the $742 OAS Boost and Why It Matters
The $742 annual increase is the total additional benefit amount Canadian seniors will receive over the course of 2025.
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It’s tied directly to Canada’s Consumer Price Index (CPI), ensuring seniors’ purchasing power keeps up with rising living costs for food, housing, utilities, and healthcare.
For seniors aged 75 and above receiving full OAS, monthly payments will rise by approximately $60, from $748.45 to $808.45 in 2025. This gradual increase, spread across four quarters, will help seniors manage their everyday expenses more easily.
Historic Growth of OAS Payments in Canada
OAS payments have consistently increased over the years to match the evolving economic environment. Key milestones include:
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- 2010: Average monthly payment – $516
- 2015: Increased to around $564
- 2020: Grew further to approximately $613
- 2022: A permanent 10% increase was introduced for seniors aged 75 and over
- 2025: An annualized increase of $742, spread out in monthly payments
This consistent growth underscores the government’s efforts to support seniors amid rising living costs.
Who Is Eligible for the 2025 OAS Increase?
To receive the Old Age Security payment and benefit from the 2025 boost, Canadians must meet the following criteria:
Eligibility Requirements
- Must be 65 years or older
- Must be a Canadian citizen or legal resident
- Must have lived in Canada for at least 10 years after turning 18
- Income must be below the OAS clawback threshold to avoid benefit reductions
OAS Clawback Explained: Income Limits Matter
OAS payments are subject to a clawback if your income exceeds a certain threshold.
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2025 OAS Clawback Details
| Age Group | Clawback Starts At | Full Clawback At |
|---|---|---|
| Age 65–74 | $93,454 | Around $148,179 |
| Age 75+ | Slightly higher thresholds, adjusted annually |
For every dollar above the threshold, your OAS is reduced by 15 cents. Seniors with incomes below these limits retain full OAS benefits, including the new $742 increase.
How the $742 OAS Boost Is Distributed
Rather than a single annual payment, the $742 is spread out through quarterly CPI-based increases to monthly payments.
OAS Monthly Payment Schedule by Quarter (2025)
| Quarter | 65–74 Monthly (CAD) | 75+ Monthly (CAD) |
|---|---|---|
| Jan–Mar 2025 | $732.65 | $798.88 |
| Apr–Jun 2025 | $734.95 | $808.45 |
| Jul–Sep 2025 | $734.95 | $808.45 |
| Oct–Dec 2025 | $734.95 | $808.45 |
These amounts reflect the updated CPI adjustments, ensuring that monthly cheques grow in step with inflation.
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CRA OAS Payment Dates for 2025
The CRA will deposit OAS payments into seniors’ accounts on the following dates throughout 2025:
2025 OAS Deposit Calendar
| Month | Payment Date |
|---|---|
| January | 29 January 2025 |
| February | 26 February 2025 |
| March | 27 March 2025 |
| April | 28 April 2025 |
| May | 28 May 2025 |
| June | 26 June 2025 |
| July | 29 July 2025 |
| August | 27 August 2025 |
| September | 25 September 2025 |
| October | 29 October 2025 |
| November | 26 November 2025 |
| December | 22 December 2025 |
Most recipients will receive payments via direct deposit, though mailed cheques are also available.
Planning Your Retirement with the OAS Boost in Mind
While $742 may seem modest annually, it can play a critical role in retirement planning, especially for those on fixed incomes.
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How the OAS Increase Helps Seniors:
- Covers daily essentials like food, medication, and bills
- Improves budgeting accuracy over the year
- Supports low-income seniors when combined with GIS (Guaranteed Income Supplement)
- Encourages deferral planning—delaying OAS until age 70 increases monthly payments by up to 36%
Seniors and financial planners are advised to incorporate these increases into annual income forecasts to better manage expenses and taxes.
Summary Table: Key Highlights of the 2025 OAS Boost
| Category | Details |
|---|---|
| Administered By | Canada Revenue Agency (CRA) |
| Annual Increase | $742 (approximate total boost) |
| Monthly Max (Age 65–74) | $734.95 by mid-2025 |
| Monthly Max (Age 75+) | $808.45 by mid-2025 |
| Eligibility Age | 65 years and older |
| Residency Requirement | 10+ years in Canada after age 18 |
| Payment Frequency | Monthly |
| Clawback Threshold (65–74) | Begins at $93,454 |
| Taxable | Yes (OAS is taxable income) |
(5) Frequently Asked Questions (FAQs)
Q1. How much is the OAS increase for 2025?
The CRA has confirmed a $742 annual increase to OAS payments for eligible seniors, distributed through higher monthly payments.
Q2. Who qualifies for the 2025 OAS boost?
Canadians aged 65 and older who have lived in Canada for at least 10 years and whose income is below the clawback threshold are eligible.
Q3. When will I receive my OAS payment in 2025?
Payments are made monthly. For example, January’s deposit is scheduled for 29 January 2025, with similar dates listed throughout the year.
Q4. Is the $742 OAS boost taxable?
Yes. OAS is considered taxable income, and the increase is added to your total annual income for tax purposes.
Q5. Can I delay my OAS to get higher payments?
Yes. Seniors can defer OAS up to age 70, gaining up to 36% more per month. This strategy is often used for better retirement planning
