Kelly
Canadian seniors are looking at a potential one-time payment of $2,350 to their Old Age Security (OAS) benefit in mid-2025.
With inflation pushing up rent, groceries, and medications, this extra relief could make a real difference. Here’s a comprehensive look at who qualifies, how it works, and everything retirees should prepare for.
OAS at a Glance — Current vs. Proposed
| Item | OAS Today (2025) | Proposed 2025 Boost |
|---|---|---|
| Monthly OAS (Age 65–74) | $727.67 | +$2,350 one-time payment |
| Monthly OAS (75+) | $800.44 | +$2,350 one-time payment |
| Eligibility Age | 65+ | Same |
| Residency Rules | 10+ years in Canada | Same |
| Income Limits | OAS Recovery starts >$86,912 | Same |
What Is the Old Age Security Program?
The OAS program delivers a monthly pension to seniors aged 65 and over who have lived in Canada for at least 10 years since age 18.
It’s funded through general taxation—not through contributions like CPP—and adjusts each quarter to reflect inflation. Seniors aged 65–74 receive about $727.67/month, while those 75+ receive roughly $800.44/month.
Why the $2,350 One-Time Payment?
This one-time rumoured payment is designed to ease financial pressure from rising costs across essentials like housing and healthcare. Although not yet finalized, it’s part of broader efforts by the government to support seniors during economically challenging times.
Potential uses include:
- Rent or mortgage payments
- Grocery and utility bills
- Medication and healthcare costs
- Home maintenance and transportation
Who Qualifies for the $2,350 Boost?
Eligibility for the one-time payment would follow OAS’s existing rules:
- Be 65 or older in 2025
- Meet minimum residency requirements
- Have income below the threshold to avoid full clawback
- Live in Canada as a citizen or legal resident
Note: Income above the threshold ($86,912) could reduce or negate amounts due to the OAS Recovery Tax.
When Will the Payment Arrive?
If approved, the $2,350 payment is expected around mid-2025, likely matching regular monthly OAS deposit cycles. Regular 2025 payment dates include:
- June 29
- July 27
- August 28
Be sure to review your CRA direct deposit setup to ensure you receive the full amount on time.
How to Ensure You Receive the Benefit
- If you’re already receiving OAS: no application needed. The one-time payment would be direct-deposited automatically.
- If you’re not yet receiving OAS: apply before the payment date via your My Service Canada Account or mail in the standard application.
- Double-check your direct deposit and personal info with CRA early in 2025.
Maximize Your Overall Benefits
Beyond the $2,350 add-on, consider these key strategies to boost and preserve your income:
- Delay OAS – Each month delayed past 65 increases your pension by ~0.6%, up to age 70 (+36%).
- Manage high income – Keep income under the OAS clawback threshold or use tax strategies like income splitting and non-RRSP savings.
- Explore other benefits – Apply for GIS, provincial supports like housing rebates, and seniors’ transit passes.
The proposed $2,350 one-time OAS payment could bring crucial relief to Canadian seniors facing soaring living costs. By mid-2025, eligible retirees may see a much-needed boost alongside their regular pension.
To prepare:
- Confirm your eligibility and residency
- Ensure your direct deposit details are accurate
- Strategize to protect your overall income
With timely preparation, seniors can fully benefit from this financial support and enjoy sounder financial footing throughout the year.
FAQs
Will I lose part of the payment due to the OAS clawback?
Possibly. If your net income exceeds ~$86,912 in 2025, part of your OAS (including the one-time payment) could be reduced or recovered.
Is action required to receive this one-time payment?
If you’re already enrolled in OAS with up-to-date banking info, no. First-time recipients must apply in advance to qualify by mid-2025.
Can this payment be taxed or recovered later?
No. It’s refundable, not counted as taxable income unless clawed back due to high earnings.