Rising cost-of-living adjustments (COLA) and strategic deferrals could propel Old Age Security (OAS) payments up to $969 per month for Canadian seniors in 2025. Here’s what you need to know to maximize your retirement income.
What Is Old Age Security (OAS)?
OAS is a foundational monthly pension for Canadian residents aged 65 and older. It’s indexed quarterly to inflation, meaning payments rise—but never fall—based on the Consumer Price Index (CPI) .
Current OAS Payment Rates (2025)
As of July–September 2025, the maximum OAS payments are:
| Age Group | Max Monthly OAS (CAD) | Income Threshold for Full Amount |
|---|---|---|
| 65 to 74 years | $734.95 | Less than $148,541 annually |
| 75 years and older | $808.45 | Less than $154,196 annually |
How Can OAS Reach $969 a Month?
By delaying the start of OAS, seniors can increase their monthly payments by 0.6% per month, up to 36% over a 5-year deferral (maximum achievable by age 70).
Using the current maximum of $734.95, the future projections are:
| Age at Start | Monthly OAS Approx. |
|---|---|
| 65 | $734.95 |
| 70 (5-year delay) | ~$999.53 |
| 69 (4-year delay) | ~$946.62 |
| Conservative Estimate | ~$969 |
This reflects a potential OAS monthly rate approaching $969 or even exceeding $999 for those able to delay until age 70 .
Eligibility and Additional Factors
To qualify:
- Be 65+ years old
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years since age 18 (40 years qualifies for full OAS)
Be mindful of the OAS Recovery Tax (clawback)—if your annual net income exceeds:
- $148,541 (ages 65–74)
- $154,196 (75+)
You may be required to repay part or all of your OAS benefits
Additional Benefits: GIS, Allowance & More
Low-income seniors may also be eligible for:
- Guaranteed Income Supplement (GIS): Non-taxable, based on income and marital status.
- Allowance (60–64 years old): For spouses of GIS recipients; up to ~$1,381.90/month.
- Allowance for the Survivor (60–64 years old, widowed): Up to ~$1,647.34/month
Combined with OAS, these benefits can significantly boost monthly income.
For Canadian seniors, strategic planning can dramatically increase retirement income. With CPI-indexed increases and smartly deferring OAS, monthly payouts may rise from $735 to nearly $1,000.
Combine this with targeted benefits like GIS and Allowance, and your total monthly support could be significantly higher—particularly important for those with limited savings.
To make the most of OAS:
- Consider deferring payments strategically.
- Keep income below the clawback thresholds.
- Explore GIS and Allowances if eligible.
FAQs
Can my OAS payment really reach $969 per month?
Yes—by deferring your OAS for up to 5 years (until age 70), your monthly rate could climb near $1,000 per month.
Who qualifies for maximum OAS payments?
Those aged 65+, with enough years of residency (ideally 40+ years), and with annual income below $148,541 (65–74) or $154,196 (75+).
What extra support is available for low-income seniors?
You may qualify for GIS, Allowance, or Allowance for the Survivor, which can significantly boost your total monthly benefits.