Canadian Seniors Receive Boost in Old Age Security Benefits

Benefit payments for Canadian seniors are increasing slightly in response to the rising cost of living. Julyís Old Age Security (OAS) benefits are up by 2.8% compared to last year, adjusting for inflation. For the July to September period, OAS benefits see a 0.7% rise.

The OAS pension, which was permanently increased by 10% for seniors aged 75 and over in July 2022, is reviewed quarterly to reflect cost of living changes measured by the Consumer Price Index (CPI).

Eligible seniors aged 65 to 74 years can now receive a maximum monthly amount of up to $718.33. For those aged 75 and older, the maximum monthly payment is $790.16. Additionally, seniors and their partners may qualify for extra benefits under the OAS program, such as the Guaranteed Income Supplement, Allowance, and Allowance for the Survivor, which are non-taxable.

Single, widowed, or divorced Canadians aged 65 or older with an annual net income of less than $21,768 can receive a maximum GIS payment of $1,072.93 per month for the July to September period. The maximum monthly allowance for a surviving spouse or common-law partner aged 60 to 64 is $1,626.20.

To be eligible for OAS, individuals must be at least 65 years old and meet residency requirements. Employment status does not affect eligibility, and most Canadians are automatically enrolled when they turn 65. Those not automatically enrolled can apply online or by paper mail.

Rising living costs are causing many Canadians to reconsider or delay retirement. A Fidelity Investments Canada survey found that nearly 60% of Canadian retirees are financially supporting their adult children, impacting their own finances. The federal government plans to expand early retirement eligibility for some front-line workers this fall, allowing retirement after 25 years of service without a pension reduction, a provision currently available to military members, RCMP officers, and some correctional workers.