In 2025, Canadian seniors have the opportunity to receive up to $2,350 per month through the Old Age Security (OAS) and Guaranteed Income Supplement (GIS) programs.
This initiative aims to provide financial stability and support to seniors, ensuring they can maintain a comfortable standard of living during retirement.
This comprehensive guide outlines the eligibility criteria, payment schedules, potential clawbacks, and application processes associated with these benefits.
Understanding OAS and GIS
The Old Age Security (OAS) program is a federal pension available to Canadian citizens and legal residents aged 65 and older. Unlike the Canada Pension Plan (CPP), OAS does not require prior contributions or work history.
The Guaranteed Income Supplement (GIS) is an additional non-taxable benefit for low-income seniors who are already receiving OAS, providing further financial assistance to those in need.
Eligibility Criteria
Old Age Security (OAS):
- Age Requirement: Must be 65 years or older.
- Residency Status: Must be a Canadian citizen or legal resident at the time of application approval.
- Residency Duration: Must have resided in Canada for at least 10 years after turning 18 to qualify for a partial pension; 40 years of residency are required for a full pension.
Guaranteed Income Supplement (GIS):
- Income Thresholds: Eligibility is based on annual income and marital status:
- Single, widowed, or divorced: Annual income must be less than $22,056.
- Married or common-law partner (both receiving OAS): Combined annual income must be less than $29,136.
- Married or common-law partner (one receiving OAS): Combined annual income must be less than $52,848.
- Married or common-law partner (one receiving Allowance): Combined annual income must be less than $40,800.
Benefit Amounts
The maximum monthly benefits for eligible seniors in 2025 are as follows:
| Benefit | Age Group | Maximum Monthly Amount |
|---|---|---|
| OAS | 65 to 74 | $727.67 |
| OAS | 75 and over | $800.44 |
| GIS | All ages | $1,086.88 |
For example, a single senior aged 75 or older with an annual income below $22,056 could receive up to $1,887.32 per month ($800.44 OAS + $1,086.88 GIS).
Payment Dates for 2025
OAS and GIS payments are disbursed on the third-to-last business day of each month. The scheduled payment dates for 2025 are as follows:
- January: 29th
- February: 26th
- March: 27th
- April: 28th
- May: 28th
- June: 26th
- July: 29th
- August: 27th
- September: 25th
- October: 29th
- November: 26th
- December: 22nd
OAS Clawback (Recovery Tax)
The OAS Clawback, officially known as the OAS Recovery Tax, affects seniors with higher incomes. For the 2025 tax year, the threshold is set at $90,997.
Seniors with net world income exceeding this amount will experience a reduction in their OAS benefits at a rate of 15% on the income above the threshold. For instance, if a senior’s net income is $100,000, the OAS benefit would be reduced by $1,350 (15% of $9,003).
Application Process
Most seniors are automatically enrolled in the OAS program and will receive a notification letter six months before their 65th birthday.
If no notification is received, individuals should apply promptly to avoid delays. Applications can be submitted online through the My Service Canada Account or by mailing a completed application form to Service Canada. Processing times typically range from 6 to 12 weeks.
Additional Provincial Supplements
Several provinces offer additional supplements to support low-income seniors:
- British Columbia Senior’s Supplement: Provides a monthly top-up to federal income for eligible seniors receiving OAS and GIS, with no need for a separate application.
- Ontario Guaranteed Annual Income System (GAINS): Offers up to $87 per month to eligible seniors, supplementing OAS and GIS payments.
In 2025, eligible Canadian seniors can receive substantial financial support through the combined benefits of OAS and GIS, amounting to up to $2,350 per month.
Understanding the eligibility criteria, payment schedules, and application processes is crucial for maximizing these benefits and ensuring financial stability during retirement.
FAQs
How can seniors avoid the OAS clawback?
Seniors can consider income-splitting strategies, utilizing Tax-Free Savings Accounts (TFSA) instead of taxable accounts, or deferring their OAS benefits until age 70 to maximize payments while avoiding the recovery tax.
Can a senior apply for GIS if they already receive OAS?
Yes, seniors receiving OAS who meet the low-income thresholds can apply for GIS. The application can be completed online through My Service Canada Account or by mailing the necessary forms to Service Canada.
What happens if an OAS application is delayed?
If a senior does not apply for OAS at age 65, they can still apply later. Payments can be retroactive for up to 11 months from the application date.
Don ‘ t know if I am eligible
819-621-7673
I receive about 24000.00$ per year do I qualify for any raise of any kind.
I only get only get old age pension