Canada’s OAS Pension Set To Increase By $770 In June 2025 – Everything You Need To Know
In recent months, a rumor has been circulating that the Canada Old Age Security (OAS) pension will receive a $770 increase in June 2025. However, there has been no official confirmation of such a large one-time increase. Instead, the OAS pension undergoes periodic adjustments based on inflation every quarter.
This article will provide you with all the crucial details regarding the OAS pension, eligibility criteria, payment dates, and additional financial support for seniors.
Is the $770 OAS Pension Increase Real?
First, let’s address the big question: Is there an official $770 increase to the OAS pension in June 2025?
The answer is no. The Canadian government has not announced any one-time increase of $770. Rather, the OAS pension is automatically adjusted every quarter (in January, April, July, and October) according to the inflation rate.
This ensures that the pension keeps up with the cost of living. So, while rumors have suggested a significant increase, there is no official confirmation of such a change.
OAS Pension: What Is It?
The Old Age Security (OAS) pension is a federally-funded program designed to provide financial support to senior citizens in Canada. It is unique because you do not need to have worked in Canada to be eligible for the pension.
The program is funded by Canadian tax revenue, and eligibility is based on residence and citizenship rather than work history.
Who Is Eligible for OAS Pension?
To be eligible for the OAS pension, individuals must meet the following criteria:
- Age: The individual must be 65 years or older.
- Citizenship: Must be a Canadian citizen or a legal resident of Canada.
- Residency: Must have lived in Canada for at least 10 years after turning 18.
- Full Benefits: Those who have lived in Canada for 40 years after turning 18 will receive the full OAS pension.
OAS Pension Amount in June 2025
While rumors of a $770 increase are untrue, the actual maximum OAS payments for June 2025 are set as follows:
| Age Group | Maximum Monthly Pension |
|---|---|
| 65 to 74 years | $727.67 |
| 75 years and above | $800.44 |
These amounts are subject to periodic adjustments based on inflation. They ensure that seniors’ income keeps pace with rising living costs, although they may not match the inflated $770 figure circulating online.
OAS Pension Payment Dates (2025)
OAS payments are made on the third business day of each month. The payment dates for 2025 are:
| Month | Payment Date |
|---|---|
| January | 29 January 2025 |
| February | 26 February 2025 |
| March | 27 March 2025 |
| April | 28 April 2025 |
| May | 28 May 2025 |
| June | 26 June 2025 |
| July | 29 July 2025 |
| August | 27 August 2025 |
| September | 25 September 2025 |
| October | 29 October 2025 |
| November | 26 November 2025 |
| December | 22 December 2025 |
Additional Financial Support for Seniors
In addition to the OAS pension, the Canadian government offers several other financial programs for seniors:
- Guaranteed Income Supplement (GIS): This is provided to low-income seniors and can be added to the OAS pension.
- Allowance: This is for low-earning spouses of OAS pensioners aged 60-64.
- Allowance for the Survivor: This is for widows or widowers aged 60-64.
- Provincial Senior Benefits: Some provinces provide additional support, such as subsidies for housing and medications.
How to Avoid Tax and Clawback on OAS Pension
The OAS pension is taxable income. If your annual income exceeds $90,997 (as of 2025), the OAS clawback (or recovery tax) will apply, meaning the government will reduce the amount of OAS you receive.
Ways to avoid the clawback include:
- Investing in a TFSA (Tax-Free Savings Account): This does not increase taxable income.
- Pension Income Splitting: This allows couples to divide their income, lowering the combined taxable income.
- Deferring OAS: Deferring OAS can result in higher monthly payments when you start receiving it.
How to Apply for OAS?
Most Canadians are automatically enrolled at age 65. However, if you are not automatically enrolled, you can apply through:
- Online: Using your My Service Canada Account.
- By Mail: Complete the OAS application form and send it to Service Canada.
- In Person: Visit your nearest Service Canada office.
While rumors of a $770 increase to the OAS pension are not true, the government’s quarterly adjustments ensure that seniors receive a reasonable pension based on inflation.
If you’re 65 or older, make sure you meet the eligibility requirements and apply through the official Service Canada channels. Additionally, there are other financial support programs available for seniors to help ease the financial burden.
Proper financial planning and understanding of government benefits can ensure a stable and dignified retirement.
FAQs
Is the $770 OAS pension increase in June 2025 confirmed?
No, the OAS pension is adjusted quarterly based on inflation, not a one-time increase.
What is the actual OAS pension amount for June 2025?
For those 65-74 years old, the maximum payment is $727.67, and for those 75 and older, it is $800.44.
When will the next OAS payment be issued?
The next payment will be issued on 26 June 2025.
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