Starting in June 2025, eligible Canadian seniors will receive an additional $1,250 every month to help cover rising living expenses.
This new initiative is aimed at providing greater financial stability for older Canadians, especially those struggling to make ends meet in an era of increasing costs of essentials.
Whether you’re a senior yourself or a family member helping someone, here’s everything you need to know about this new benefit—who qualifies, how to apply, and what to do with the extra money.
What is the $1,250 Monthly Payment?
The $1,250 monthly payment, which starts in June 2025, is designed to complement the existing Old Age Security (OAS) and Canada Pension Plan (CPP) benefits.
This isn’t a replacement for OAS or CPP but an additional benefit to assist low-to-moderate-income seniors with their cost of living, helping them manage the increased expenses of food, rent, healthcare, and other essentials.
| Key Aspect | Details |
|---|---|
| Monthly Payment | $1,250 per month (starting June 2025) |
| Eligibility Age | 65 years or older |
| Residency Requirement | Must have lived in Canada for 10+ years after age 18 |
| Income Criteria | Must meet the income threshold; file taxes annually |
| Application Process | Auto-enrollment or manual via Service Canada |
| First Payment Date | June 2025 |
| Linked Programs | OAS, CPP |
Why is This Benefit Being Introduced?
As inflation continues to affect living costs, seniors, many of whom live on fixed incomes, are finding it harder to maintain a comfortable standard of living. This new benefit is designed to:
- Help offset rising costs of food, rent, and medications.
- Provide seniors who depend on fixed income with extra financial breathing room.
- Promote independence and reduce financial stress in retirement.
The ultimate goal is to enhance seniors’ quality of life and enable them to live more comfortably and with fewer financial worries.
Eligibility Criteria
To qualify for the $1,250 monthly payment, applicants must meet the following conditions:
- Age Requirement: Applicants must be 65 years or older.
- Citizenship & Residency: You must be a Canadian citizen or permanent resident and have lived in Canada for at least 10 years after turning 18.
- Enrollment in OAS/CPP: You must already be receiving OAS or CPP. If not, make sure you enroll in these programs before applying.
- Income Criteria: Your annual net income must fall below the eligibility threshold. Ensuring your taxes are filed accurately and on time is critical to determine your eligibility.
How to Apply
The good news is that most seniors will be auto-enrolled in this benefit, especially those already receiving OAS and filing their taxes on time. However, if you need to apply manually, here’s how:
- Step 1: Confirm your eligibility (Age 65+, Canadian citizen/permanent resident, enrolled in OAS/CPP).
- Step 2: Gather your documents:
- Social Insurance Number (SIN)
- Government-issued ID (e.g., passport, PR card, birth certificate)
- Recent income tax returns and Notice of Assessment
- Proof of Canadian residence (e.g., utility bills, lease agreements)
- Step 3: Visit Service Canada:
- Online: Log in to your Service Canada account to check your status.
- In Person: Visit your local Service Canada office.
- By Phone: Speak with a representative if you need assistance.
- Step 4: Update your information to avoid delays in your payment.
How to Spend Your Extra $1,250
Once approved, here’s how you can use this extra money wisely:
1. Budget Wisely
Create a monthly budget and make sure to track your spending. Set aside a portion of this payment for emergencies or unexpected expenses.
2. Pay Off Debt
Use part of the benefit to clear existing debts, such as credit card balances or loans. Less debt will reduce stress and provide more financial freedom.
3. Healthcare
Consider using some funds for health-related expenses, like medications, check-ups, or assistive devices, ensuring better long-term health.
4. Lifestyle
This benefit can also be used for activities that improve your quality of life, like taking a hobby class, going out for meals with friends, or home repairs.
Impact on Seniors
This new benefit has the potential to improve seniors’ quality of life, and it will also stimulate local economies as seniors have more disposable income to spend on goods and services.
More importantly, it offers seniors a sense of financial security, enabling them to live with more independence and less worry.
The introduction of the $1,250 monthly payment is a vital step in ensuring Canadian seniors can live comfortably despite rising living costs.
It offers additional support for low to moderate-income seniors and helps them manage day-to-day expenses more easily.
FAQs
Who is eligible for the $1,250 monthly payment?
To qualify, you must be 65 years or older, a Canadian citizen or permanent resident, and meet income criteria.
How can I apply for this benefit?
Most seniors will be auto-enrolled, but you can apply manually through Service Canada if needed.
When will the payments start?
The first payments are set to begin in June 2025.