As the cost of living continues to rise across Canada, the federal government is stepping in with stronger financial assistance for its elderly population. Starting October 2025, eligible seniors receiving Old Age Security (OAS) will see their monthly payments rise to $1,450, particularly benefiting low-income individuals.
This initiative is part of a broader federal effort to help retirees maintain financial stability amid inflation, high housing costs, and increasing healthcare expenses. The new rate aims to make OAS payments more reflective of real-world living conditions and ensure that no senior citizen is left behind.
What Is the Old Age Security (OAS) Program?
The Old Age Security (OAS) is one of Canada’s most vital federal pension programs, offering monthly payments to residents aged 65 and older. It operates separately from the Canada Pension Plan (CPP) and is funded through general tax revenues rather than individual contributions.
The benefit amount is adjusted regularly based on the Consumer Price Index (CPI) to protect seniors from inflation. In 2025, with living costs continuing to climb, the federal government has announced a notable increase — with monthly OAS payments reaching up to $1,450 for eligible low-income seniors.
Why the OAS Increase Matters in 2025
The increase in OAS comes at a critical time when seniors across Canada are struggling with rising costs for essentials such as rent, groceries, utilities, and prescription medications.
According to federal data, nearly one in five Canadian seniors depends on OAS as their main source of income. The 2025 increase reflects Ottawa’s effort to help the elderly maintain dignity and independence, particularly those on fixed incomes.
The adjustment also follows continued lobbying by advocacy groups like CARP (Canadian Association of Retired Persons), which has urged the government to align benefits with the real cost of living faced by retirees.
Breakdown of the $1,450 OAS Payment
From October 2025, the maximum OAS monthly benefit will be approximately $1,450, depending on income level and age group. The increase primarily supports:
- Low-income seniors aged 65 and above.
- Recipients eligible for the Guaranteed Income Supplement (GIS).
- Individuals aged 75 and older, who receive slightly higher rates due to previous federal enhancements.
Here’s how the October 2025 payment structure is expected to look:
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| Age Group | Estimated OAS Monthly Payment (Oct 2025) |
|---|---|
| 65–74 years | Up to $1,380 |
| 75 years and older | Up to $1,450 |
| With GIS Top-Up | Additional $600–$1,000 (based on income) |
Who Is Eligible for the $1,450 OAS Payment?
To qualify for the October 2025 OAS benefit, seniors must meet the following criteria:
- Age Requirement: Must be 65 years or older by October 2025.
- Residency Requirement: Must be a legal Canadian resident who has lived in Canada for at least 10 years after the age of 18.
- Income Threshold: Must have a net income below $142,609 for the 2025 tax year. (Those earning above this amount will see their benefits clawed back through the OAS recovery tax.)
- Tax Filing: Must have filed their 2024 income tax return with the Canada Revenue Agency (CRA).
For low-income seniors also receiving the Guaranteed Income Supplement (GIS), the total combined benefit (OAS + GIS) could exceed $2,000 per month, depending on individual circumstances.
When Will You Receive the OAS Payment?
The October 2025 OAS payment will be deposited directly into beneficiaries’ bank accounts or mailed as a cheque on the last business day of October 2025.
Here’s the expected schedule for the last quarter of 2025:
| Month | Payment Date |
|---|---|
| October 2025 | October 31, 2025 |
| November 2025 | November 28, 2025 |
| December 2025 | December 30, 2025 |
Recipients registered for direct deposit will receive payments earlier than those receiving mailed cheques. The CRA recommends updating your My Service Canada Account (MSCA) to avoid delays.
How to Apply for the OAS Payment (If Not Automatically Enrolled)
Many seniors are automatically enrolled for OAS benefits based on their existing CRA and Service Canada records. However, if you are not automatically enrolled, you can apply using the following steps:
- Visit canada.ca/oas.
- Sign in with your My Service Canada Account (MSCA).
- Complete the OAS Application Form (ISP-3550).
- Upload or mail proof of age and residency documents (e.g., passport, birth certificate, or immigration papers).
- Submit the application online or by post to your nearest Service Canada Centre.
Once approved, your OAS payments will begin the following month, with retroactive payments possible for up to 11 months from your eligibility date.
How the $1,450 Benefit Helps Low-Income Seniors
For seniors struggling with everyday costs, the $1,450 monthly OAS payment can provide critical financial relief. It helps cover:
- Rent or mortgage payments.
- Medical expenses not covered by insurance.
- Rising food and utility costs.
- Transportation and mobility needs.
Many pensioners also use this benefit to reduce debt or build small savings to prepare for emergencies.
According to financial experts, this boost not only supports individual seniors but also injects billions into the Canadian economy by increasing household spending power among older citizens.
What If You Earn Too Much to Qualify for the Full OAS?
The OAS recovery tax (commonly known as the “clawback”) applies to individuals whose annual income exceeds $86,912.
For every dollar earned above that amount, 15 cents is deducted from your OAS payment. Once income surpasses $142,609, the OAS benefit is completely phased out.
Seniors nearing these income levels can consider tax planning strategies such as RRSP withdrawals, pension income splitting, or charitable donations to minimize clawback impact.
How OAS Differs from Other Senior Benefits
The OAS program works alongside several other federal and provincial supports:
- Guaranteed Income Supplement (GIS): Extra payments for low-income OAS recipients.
- Canada Pension Plan (CPP): Contributory pension based on employment history.
- Allowance for the Survivor: Monthly payments for low-income individuals aged 60–64 whose spouses have passed away.
Together, these programs form the foundation of Canada’s retirement income system, ensuring that seniors receive layered protection against poverty.
Common Mistakes That Delay OAS Payments
Many seniors miss out on timely payments due to small but avoidable errors. Here are the most common ones:
- Failing to file the previous year’s tax return on time.
- Providing outdated or incorrect bank details.
- Ignoring CRA notices or failing to update residency information.
- Not applying even when eligible.
To avoid delays, seniors should regularly log in to their My Service Canada Account, verify their details, and file taxes before the CRA’s annual deadline.
Government’s Vision for Seniors’ Financial Security
The OAS increase forms part of Canada’s broader Seniors’ Financial Security Plan, which aims to strengthen retirement benefits, protect against inflation, and reduce poverty among older Canadians.
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According to the federal budget statement, Ottawa plans to continue reviewing OAS annually to ensure it keeps pace with living costs and economic realities.
This reaffirms the government’s commitment to ensuring that every senior, regardless of income background, can retire with stability and dignity.
FAQs on the $1,450 OAS Payment October 2025
Q1. What is the new OAS payment amount for October 2025?
Eligible low-income seniors will receive up to $1,450 per month, depending on age, income level, and eligibility for GIS.
Q2. When will the $1,450 OAS payment be issued?
The payment will be released on October 31, 2025, the last business day of the month.
Q3. Who qualifies for the October 2025 OAS benefit?
You must be 65 or older, a Canadian resident, have at least 10 years of residency in Canada, and earn below the income threshold set by CRA.
Q4. Is the OAS payment taxable?
Yes. OAS payments are considered taxable income, though low-income seniors may qualify for tax credits or GIS top-ups to offset this.
Q5. How can I check my OAS payment status?
You can view your OAS payment schedule, eligibility, and deposit updates through your My Service Canada Account (MSCA).
