Canadian seniors are closely watching a potential rise in Old Age Security (OAS) to $969 per month in 2025. Thanks to cost-of-living adjustments (COLA) and strategic payment deferrals, those who delay claiming their pension can significantly boost their monthly income.
Understanding how OAS works, eligibility rules, deferral options, and the claim process empowers retirees to make informed decisions that maximize their financial security.
What Is Old Age Security (OAS)?
Old Age Security (OAS) is a monthly pension provided to Canadians aged 65 and older, funded through general tax revenue—not individual contributions. It’s indexed quarterly to inflation based on the Consumer Price Index (CPI), which means payments rise with inflation and never drop when the CPI falls.
OAS often operates as a foundational source of retirement income, frequently combined with income from the Canada Pension Plan (CPP), personal savings, and benefits like the Guaranteed Income Supplement (GIS).
Current OAS Rates (July–September 2025)
| Age Group | Max Monthly OAS (CAD) | Income Threshold for Full Amount |
|---|---|---|
| 65 to 74 years | $734.95 | Net world income less than $148,541 |
| 75 years and up | $808.45 | Net world income less than $154,196 |
These are the base amounts before applying any deferral bonus. Seniors with lower income may also qualify for additional financial support via GIS, Allowance, or Allowance for the Survivor.
How Can OAS Reach $969/month in 2025?
Seniors have the option to defer OAS payments for up to five years past age 65, with a 0.6% monthly increase in benefits—equating to 7.2% per year, and up to 36% if deferred until age 70.
Here’s how deferral affects the July–September 2025 rate:
| Age at Start | Deferral Duration | Approx. Monthly OAS |
|---|---|---|
| 65 | No delay | $734.95 |
| 69 | 4-year delay | ~$946.62 |
| 70 | 5-year delay | ~$999.53 |
Hence, by combining inflation indexing and strategic deferral, a realistic payment of around $969 per month can be achieved for many retirees.
Why Delaying OAS Can Be Smart
Deferral is particularly beneficial for:
- Seniors in good health with long life expectancy
- Those with other income sources between ages 65–70
- Retirees seeking to maximize guaranteed income in later years
However, note that during the deferral period, you’re ineligible for GIS or Allowances, and personal circumstances like health, financial needs, and tax implications should be carefully weighed.
Eligibility Requirements for 2025
To qualify for OAS:
- Must be 65 years or older
- Must be a Canadian citizen or legal resident
- Must have lived in Canada for at least 10 years since age 18 (or eligible under international agreements)
- To receive the full OAS benefit, you generally need 40 years of residency; shorter periods may result in a partial pension
High-income seniors should also be aware of the OAS Recovery Tax (clawback), which affects those earning above certain thresholds.
The OAS Recovery Tax (Clawback)
If your net world income exceeds certain limits, you must repay part or all of your OAS:
- 65–74 years: starts above $148,541
- 75+ years: starts above $154,196
Planning income levels—through investments, RRSP withdrawals, or strategies to reduce taxable income—may help avoid or minimize clawbacks.
How to Apply & Start OAS
- Automatic Enrollment: Most Canadians are auto-enrolled and receive a letter around age 64.
- Apply via My Service Canada Account, by mail, or in person.
- Start anytime between ages 65–70; you can also defer through your account or by returning your enrollment letter.
When Are OAS Payments Made?
Payments are deposited monthly—typically the last business day of the month. Examples for 2025 include:
- August 27
- September 25
- And continuing similarly for the rest of the year.
These dates apply whether you start at age 65 or later.
For Canadian seniors, the potential to receive up to $969 per month in OAS in 2025—through COLA increases plus strategic deferral—presents a valuable opportunity. By understanding program rules, eligibility, payment timing, and how deferral works, retirees can make informed decisions to optimize their retirement income.
Whether aiming to maximize income in later years or avoiding clawbacks, thoughtful planning can make a meaningful difference to your financial wellbeing.
FAQs
Who qualifies for a $969/month OAS payment?
This level of benefit isn’t automatic—it’s achievable if you qualify for the full OAS (40 years of residency), and defer claiming until around age 69–70, allowing deferral bonuses and inflation adjustments to accumulate.
Can deferring OAS affect eligibility for other benefits?
Yes. While deferring, you cannot receive GIS or Allowances during the deferral period. Make sure to evaluate the trade-offs before deciding.
When will I get my first OAS payment if I defer?
Your payment begins the month after you start your pension—either at age 65 or after the deferral period. Payments continue on the last business day of each month, typically via direct deposit.