The Canada Revenue Agency (CRA) confirmed that Old Age Security (OAS) pensions will rise in October 2025, with the maximum monthly benefit reaching $742 for recipients aged 65 to 74. The increase, linked to inflation, will be issued on October 29, 2025.
CRA Approved $742 OAS Boost
| Key Fact | Detail/Statistic |
|---|---|
| New Maximum OAS (65–74) | $742.08/month |
| New Maximum OAS (75+) | $814.09/month |
| Next Payment Date | October 29, 2025 |
| Adjustment Basis | Consumer Price Index (CPI) |
| Official Website | Government of Canada |
The next scheduled OAS adjustment will occur in January 2026. Officials stress that quarterly reviews will continue to ensure retirement incomes keep pace with inflation, although payment levels will remain subject to broader economic conditions.
Why OAS Payments Are Increasing
The Old Age Security program, Canada’s largest public pension, is reviewed quarterly to reflect changes in the Consumer Price Index (CPI). The October–December 2025 adjustment of approximately 0.7 percent will bring new maximum monthly amounts to $742.08 for seniors aged 65–74 and $814.09 for those 75 and older, according to Service Canada.
“The quarterly adjustment ensures OAS remains stable and responsive to inflationary pressures,” a Service Canada spokesperson said in a September update. The policy aims to protect seniors’ purchasing power during periods of rising living costs.
Who Qualifies for the October 2025 OAS Increase
General Eligibility
To qualify for OAS, applicants must:
- Be 65 years or older.
- Hold Canadian citizenship or legal resident status at the time of approval.
- Have lived in Canada for at least 10 years after age 18 (20 years if applying from abroad).
Current beneficiaries do not need to reapply. The increase will be added automatically to monthly payments.
Income Thresholds and Clawback
OAS is subject to a recovery tax, often called the clawback, which reduces benefits for higher-income seniors. In 2025, the recovery threshold begins at $93,454 for those aged 65–74 and phases out entirely at about $151,775. Seniors aged 75 and older have slightly higher thresholds.
Payment Schedule
The CRA benefit calendar sets the October OAS payment for October 29, 2025. Seniors receiving direct deposit should see the funds immediately, while mailed cheques may arrive later depending on location.
Why OAS Matters in Canada’s Retirement System
OAS is a key pillar of Canada’s retirement framework, alongside the Canada Pension Plan (CPP) and the Guaranteed Income Supplement (GIS). More than 7 million Canadians currently receive OAS benefits, according to Employment and Social Development Canada.
“Even modest increases can make a difference for low- and middle-income seniors,” said Dr. Karen Duncan, professor of family social sciences at the University of Manitoba. Rising housing, food, and healthcare costs have made inflation-linked adjustments critical for maintaining seniors’ living standards.
Canada GIS Allowance for October 2025: Check Expected Payment Date, Rules and Eligibility
$7,997 Canada Child Benefit 2025: Only these will get it, Check List & Eligibility
FAQs
Do I need to apply for the October 2025 OAS boost?
No. If you are already receiving OAS, the adjustment will be automatic. Service Canada applies inflation increases without requiring new applications.
What is the exact OAS payment for October 2025?
65–74 years old: up to $742.08 per month.
75 years and older: up to $814.09 per month.
Amounts vary depending on residency history and taxable income.
When will the payment be issued?
The October 2025 OAS payment will be issued on October 29, 2025.
How does the clawback work?
The recovery tax reduces benefits for higher-income seniors. In 2025, clawback begins at $93,454 for ages 65–74 and ends at about $151,775. Thresholds are higher for seniors aged 75 and above.
What if I live outside Canada?
You may still qualify if you have resided in Canada for at least 20 years after age 18. Payments remain subject to the same inflation adjustments, but taxation may differ depending on the country of residence.
Will OAS rise again after October 2025?
Possibly. OAS rates are reviewed every January, April, July, and October. Any further increase depends on CPI trends in early 2026.
