Canada OAS Payments Rise To $808.45 In August 2025 – What Seniors Need To Know

Canada OAS Payments Rise To $808.45 In August 2025 – What Seniors Need To Know

In August 2025, Canada’s Old Age Security (OAS) benefit has been adjusted once again, ensuring seniors can keep pace with inflation. For Canadians aged 75 and older, the maximum monthly payment now reaches $808.45, while those aged 65 to 74 can receive up to $734.95.

This increase provides important financial support at a time when living costs remain high. Here’s a detailed look at what this means for retirees, including eligibility, payment schedules, clawback thresholds, and how to maximize benefits.

OAS Payment Amounts for August 2025

The OAS payment is indexed to inflation and reviewed quarterly. As of August 2025:

  • Seniors aged 65 to 74 can receive a maximum of $734.95 per month.
  • Seniors aged 75 and over can receive up to $808.45 per month.
  • For lower-income seniors who also qualify for the Guaranteed Income Supplement (GIS), total monthly benefits can exceed $1,800.

These increases are part of the government’s ongoing effort to protect retirees’ purchasing power. Importantly, OAS amounts can only go up or remain the same—they never decrease, even if inflation slows.

Eligibility for OAS

To qualify for OAS, seniors must meet certain requirements:

  • Be at least 65 years old.
  • Be a Canadian citizen or legal resident.
  • Have lived in Canada for at least 10 years after age 18 to receive partial benefits, and 40 years for the full pension.

Even Canadians living abroad may qualify if they have spent at least 20 years in Canada after turning 18. Most people are automatically enrolled before their 65th birthday, but those who are not must apply manually.

OAS Clawback Rules

The OAS clawback, officially known as the OAS Recovery Tax, reduces payments for higher-income seniors.

  • For those aged 65 to 74, the 2025 clawback threshold is $148,541.
  • For those 75 and over, the threshold rises to $154,196.

Once income exceeds these thresholds, payments are gradually reduced until the full OAS is clawed back. This means higher-income seniors should monitor taxable income closely to avoid reductions.

Payment Dates for 2025

The August 2025 OAS payment date is set for Tuesday, August 27. Those signed up for direct deposit will receive funds on this date, while cheque recipients may experience a short delay.

Remaining OAS payment dates for 2025 are:

MonthPayment Date
AugustAugust 27, 2025
SeptemberSeptember 25, 2025
OctoberOctober 29, 2025
NovemberNovember 26, 2025
DecemberDecember 22, 2025

Payments are typically scheduled for the last week of each month, with December payments issued earlier to account for the holidays.

Deferring OAS for Higher Payments

Seniors can choose to delay receiving OAS for up to 60 months (five years) after age 65. For every month OAS is deferred, payments increase by 0.6%, up to a maximum of 36% more at age 70.

This option is especially beneficial for those who expect to continue working or who have other retirement income sources in the meantime.

OAS and Taxes

OAS is considered taxable income, meaning it must be reported on your annual tax return. Seniors can request that tax withholding be applied directly to their monthly OAS payments, helping to avoid large tax bills at the end of the year. Withholding can be set up through a My Service Canada Account or by submitting a paper request.

Guaranteed Income Supplement (GIS)

For low-income seniors, the GIS offers an additional non-taxable benefit on top of OAS. Eligibility depends on household income and marital status:

  • Single seniors with very limited income may qualify for the maximum GIS.
  • Married or common-law seniors may both qualify, with amounts based on combined income.

In some cases, GIS plus OAS can provide over $1,800 per month, helping to cover essential costs like rent, food, and utilities.

OAS August 2025 Benefits

Age GroupMaximum OAS (Monthly)Clawback Threshold (Annual Income)
65–74$734.95$148,541
75+$808.45$154,196
With GIS (est.)$1,800+Based on income eligibility

The increase in Canada’s OAS payments for August 2025 ensures seniors receive much-needed support in the face of rising costs. With benefits reaching $808.45 per month for those 75 and older, OAS remains a key source of stability in retirement.

Understanding eligibility, clawback thresholds, and payment schedules allows retirees to make informed decisions and maximize their benefits.

Combined with the Guaranteed Income Supplement, these programs provide a stronger safety net, helping seniors enjoy a more secure and comfortable retirement.

FAQs

What is the maximum OAS payment in August 2025?

For seniors aged 75 and older, the maximum OAS payment is $808.45 per month. For those aged 65 to 74, the maximum is $734.95.

Do I need to apply for OAS?

Most Canadians are automatically enrolled, but if you do not receive notification by age 64, you must apply manually online, by mail, or at a Service Canada office.

Can I delay OAS payments?

Yes. Deferring OAS up to age 70 can increase your monthly benefit by as much as 36%.

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