In October 2025, Old Age Security (OAS) payments in Canada will be adjusted upward in line with inflation, but the notion of a flat $742 boost is a misunderstanding.
This article clarifies exactly what change is happening, who qualifies, what the new rates will be, and when payments will arrive. It also tackles common questions so seniors can plan with confidence.
What Is Actually Happening: The October 2025 OAS Adjustment
- OAS benefits are reviewed quarterly (in January, April, July, and October) to reflect inflation changes measured via the Consumer Price Index (CPI).
- For the October–December 2025 quarter, OAS payments will increase by approximately 0.7 % compared to the prior quarter.
- The CRA (Canada Revenue Agency), in its role overseeing tax and benefit administration, will reflect the increase automatically for OAS recipients—no new application is required.
Thus, rather than a literal “$742 boost,” the adjustment results in new maximum rates near $740–$814, depending on age bracket and eligibility.
New OAS Rates, Payment Date & Key Figures
Here’s a table summarizing key numbers for OAS from October 2025 onward:
| Category | New Maximum OAS (Oct – Dec 2025) | Notes / Conditions |
|---|---|---|
| Age 65–74 | $740.09 per month | Applies for those with sufficient years of residence |
| Age 75+ | $814.10 per month | Includes the 10 % “age‑75 top‑up” benefit |
| OAS Adjustment Rate | ~ 0.7 % increase | Based on CPI change from Feb/Mar/Apr → May/June/July 2025 |
| Payment Date | October 29, 2025 | For both direct deposit and cheque schedules |
| Clawback / Recovery Threshold (2025) | Starts ~ $93,454, full clawback ~ $151,668 for 65–74 | Higher thresholds for age 75+ |
Who Qualifies for the October 2025 Increase?
General Eligibility Rules
To receive OAS (and thus benefit from the increase), you must:
- Be 65 years or older
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years after turning 18 (for partial pension)
- For the full pension, typically 40 years of residence after age 18 is ideal, though partial pension is possible if you meet the 10‑year minimum
If you are already an OAS recipient, you do not need to reapply—the inflation increase is applied automatically.
Income & Clawback Considerations
- OAS is subject to a recovery tax (commonly called a “clawback”) for higher-income retirees.
- In 2025, the clawback begins once net world income exceeds about $93,454 for ages 65–74. Beyond a certain high income (e.g. ~$151,668), a recipient may lose the OAS benefit entirely.
- Seniors aged 75+ have slightly higher thresholds for clawback because their maximum benefit is higher.
Why OAS Matters in Canada’s Retirement System
OAS is one of Canada’s pillar pension programs, especially for seniors who did not contribute (or contributed minimally) to contributory plans like CPP/QPP. For many retirees, OAS forms a base income upon which other supports (like the Guaranteed Income Supplement, GIS) are layered.
Even a modest increase like 0.7 % can help cushion seniors from rising living costs, particularly in areas like food, housing, medical care, and utilities.
While the headline “CRA Approved $742 OAS Boost” is somewhat misleading, the core reality is that OAS benefits will rise by 0.7 % starting October 2025.
The new maximum rates will be approximately $740.09 for ages 65–74 and $814.10 for ages 75+. Recipients need not reapply—the adjustment is automatic. The payment date is set for October 29, 2025, and higher incomes may reduce or eliminate OAS through the clawback mechanism.
FAQs
Do I need to apply to get the October 2025 OAS increase?
No. If you are already receiving OAS, the adjustment will be automatic—no new application or paperwork is required.
What will be the exact OAS payments in October 2025?
Ages 65–74: up to $740.09 per month
Ages 75 and older: up to $814.10 per month
Actual amounts may vary depending on your years of residence and income.
When will I receive the October 2025 benefit?
The OAS payment for October 2025 will be issued on October 29, 2025. Direct deposit recipients should see the amount on that date; mailed cheques may arrive a bit later.