Good news is coming for Canadian seniors in October 2025! The Old Age Security (OAS) payment is going up again to help cover the rising cost of living.
Even though the increase is not very large, it makes a difference for many older Canadians who live on fixed incomes. In this article, you will learn how much the increase is, when it starts, who qualifies, and what the new rates will look like.
What Is OAS?
The Old Age Security (OAS) program is a monthly pension given to Canadians aged 65 and older. It is not based on how much you worked or paid in taxes. Instead, it depends on your age, how long you have lived in Canada, and your yearly income.
For many seniors, Old Age Security is a key part of their retirement income. That’s why even small increases matter a lot.
Why Do OAS Payments Increase?
OAS payments are reviewed every three months (January, April, July, and October). The government checks the Consumer Price Index (CPI), which measures inflation — how much the prices of goods and services rise.
- If the CPI goes up, Old Age Security payments also go up.
- If the CPI goes down, Old Age Security payments stay the same (they never decrease).
This way, seniors don’t lose buying power when costs go up.
OAS Payment Increase in October 2025
The Canadian government has announced the following updates for October 2025:
- Old Age Security payments will increase by 0.7% for the quarter October to December 2025.
- From October 2024 to October 2025, the overall increase adds up to 1.7%.
- In the last quarter (July to September 2025), OAS had already increased by 1.0%.
This means seniors will get a little more money in their monthly OAS cheques starting in October 2025.
Current and New OAS Rates
Here is a look at the maximum Old Age Security payment rates before the October increase.
| Age Group | Monthly Maximum OAS (July–Sep 2025) | Income Condition (2024) |
|---|---|---|
| 65 to 74 years | $734.95 | Income less than $148,451 |
| 75 years and older | $808.45 | Income less than $154,196 |
After the 0.7% increase, the amounts will be slightly higher:
- 65 to 74 years: Around $740.05 per month
- 75 years and older: Around $814.10 per month
If your income is above the limit, the OAS Recovery Tax (clawback) may reduce your payment.
Why This Matters for Seniors
This increase may seem small, but it is important for seniors who face higher costs of:
- Food
- Housing and rent
- Utilities like electricity and heating
- Medical care and prescriptions
Even a few extra dollars each month can help balance budgets when prices continue to climb.
Extra Notes to Remember
- Seniors aged 75 and older have already been receiving a 10% permanent boost in their Old Age Security since July 2022.
- To qualify for Old Age Security, you must be at least 65 years old, a Canadian citizen or legal resident, and have lived in Canada for at least 10 years after age 18.
- The increase also applies to the Guaranteed Income Supplement (GIS) and the Allowance programs, since they are linked to inflation as well.
The October 2025 OAS increase will give Canadian seniors a 0.7% raise in their benefits for the last quarter of the year. That means more money in monthly payments, helping older Canadians keep up with rising prices. For those aged 75 and older, the amount will be even higher due to the permanent 10% boost.
While the increase is not huge, it shows the government is adjusting benefits to make sure seniors don’t fall behind when costs go up. Every dollar counts, especially for people living on fixed incomes.
FAQs
When will the new OAS payment start?
The updated OAS rate starts with the October 2025 payment and continues through December 2025.
Do all seniors get the same increase?
Yes, the 0.7% increase applies to all. But if your income is above the set limit, you may have to pay back some through the OAS clawback.
Does delaying OAS affect this increase?
If you delay your OAS past 65, your base rate will be higher. The inflation increase (0.7%) will still apply to that higher amount.