CRA Confirms OAS Pension Increase for October 2025 — Check New 2025 Rates, Eligibility, and Deposit Schedule

Canada provides a range of retirement benefits to ensure seniors live comfortably after leaving the workforce. Among these, the Old Age Security (OAS) pension remains one of the most vital lifelines for Canadians aged 65 and above.**

In October 2025, the federal government will once again adjust OAS payments to reflect rising living costs. Service Canada has confirmed a 0.7% increase to the monthly OAS benefit, effective for the upcoming quarter. This modest yet meaningful hike aims to keep seniors’ purchasing power in line with inflation.

OAS Pension Increase Confirmed for October 2025

The Canada OAS Pension Hike October 2025 applies to all seniors currently receiving Old Age Security payments.

Currently, eligible retirees receive $734.95 per month if they are aged between 65 and 74, and $808.45 per month if they are 75 or older. Applying the 0.7% increase, seniors can expect to receive approximately:

• $740.09 per month (for ages 65–74)
• $814.10 per month (for ages 75+)

While these figures are yet to be officially confirmed by Service Canada, the estimates are based on the confirmed 0.7% cost-of-living adjustment announced in September 2025.

Automatic Adjustment – No Reapplication Needed

Good news for existing recipients — there’s no need to reapply for the increased amount. Service Canada will automatically update payments for all qualified seniors.

The new rates will appear directly in the October 29, 2025 deposit, with the adjustment automatically reflected in your monthly payment. Seniors can verify the new amount in their My Service Canada Account (MSCA).

Overview of the CRA OAS Pension Hike 2025

Category	Details
Authority	Canada Revenue Agency (CRA)
Program	Old Age Security (OAS)
Post Title	Canada OAS Pension Hike October 2025
Country	Canada
Eligible Age	65 years and above
Purpose	Financial support for retirees
Payment Frequency	Monthly
Next Payment Date	October 29, 2025 (Wednesday)
Increase Rate	0.7%
Tax Status	Taxable
Inflation Indexation	Quarterly
Current Status	Increase confirmed
Official Website	https://www.canada.ca/

Why the OAS Pension Is Increasing

The OAS pension is indexed to inflation, meaning it rises or remains stable depending on the Consumer Price Index (CPI) for Canada.

Every quarter, Service Canada reviews national inflation data. When prices of essential goods and services increase, the OAS is adjusted to ensure seniors don’t lose purchasing power.

This quarter’s 0.7% raise reflects moderate inflation pressures, primarily driven by higher energy costs, rent, and food prices throughout 2025.

How Inflation Indexation Protects Retirees

Canada’s OAS program follows an inflation-protection model, which prevents retirees’ income from stagnating when living costs rise.

Adjustments are calculated quarterly based on CPI data from Statistics Canada. Importantly, if inflation falls, OAS payments do not decrease — they remain at the current rate until the next increase is warranted.

This ensures seniors maintain a stable, predictable source of income, safeguarding their financial independence.

Eligibility Criteria for OAS Pension in 2025

To qualify for the Old Age Security pension, applicants must meet specific age, residency, and income criteria:

1. Age Requirement:
   Applicants must be 65 years or older at the time of claiming the benefit.
2. Residency Requirement:
   Must have lived in Canada for at least 10 years after turning 18.
3. Income Thresholds:
   OAS benefits begin to reduce once a retiree’s annual net income exceeds the government-defined threshold.
   For 2025:

• Ages 65–74: Annual income must be below $148,451
• Ages 75 and above: Annual income must be below $154,196

Those earning above these limits may have their OAS clawed back partially through the OAS recovery tax.

How to Apply for OAS Pension (If Not Already Enrolled)

If you haven’t started receiving OAS yet, you can apply online or via mail:

• Online: Log in to your My Service Canada Account (MSCA) and complete the online OAS application form.
• Paper Application: Download and complete the ISP-3000 form from Canada.ca, then submit it to your regional Service Canada office.

If you’re turning 65 soon, you can apply up to 11 months before your 65th birthday to avoid payment delays.

New OAS Pension Rates – October to December 2025

Here’s what the new OAS payment amounts are expected to look like after applying the confirmed 0.7% hike:

Age Group	Current Monthly Payment	Increase (0.7%)	Estimated New Amount
Ages 65–74	$734.95	+$5.14	$740.09
Ages 75+	$808.45	+$5.65	$814.10

These updated amounts will apply for the October–December 2025 quarter. The next adjustment will be announced in January 2026, depending on inflation trends.

CRA OAS Pension Deposit Date for October 2025

The next OAS deposit is scheduled for Wednesday, October 29, 2025.

Payments are typically made on the third-last business day of each month. If your OAS is set up for direct deposit, the funds should appear in your bank account on that day.

Recipients using mailed cheques may experience slight delays depending on their location and postal processing times.

Tax Implications of OAS Payments

Although the OAS pension provides crucial support, it’s considered taxable income.

This means the benefit is included in your annual tax return, and taxes may be deducted at source depending on your total income.

Seniors with higher incomes may also experience a partial OAS clawback through the OAS Recovery Tax, applied if income surpasses federal thresholds.

Additional Benefits for Seniors on Low Income

In addition to OAS, seniors with low income may qualify for supplementary programs such as:

• Guaranteed Income Supplement (GIS): Monthly top-up for low-income OAS recipients.
• Allowance and Allowance for the Survivor: Designed for spouses or common-law partners aged 60–64 of OAS pensioners.

These programs are non-taxable and automatically reviewed each year when seniors file their income tax returns.

OAS Payment Verification via My Service Canada Account (MSCA)

The MSCA portal remains the easiest and fastest way to track your OAS payments.

Once logged in, seniors can:

• Check payment history and upcoming deposit dates.
• Review tax slips and benefit statements.
• Update banking and mailing information.

If any payment discrepancies occur, seniors should contact Service Canada directly to confirm account details.

Why the 0.7% Increase Matters for Retirees

While a 0.7% raise might seem small, it reflects the government’s commitment to maintaining real income value for retirees.

In an environment where essentials like groceries and rent have risen steadily, even modest increases help offset household strain.

Over time, these incremental adjustments accumulate — strengthening long-term income stability for Canada’s aging population.

Preparing for Future OAS Adjustments

Service Canada adjusts OAS quarterly, meaning the next review will occur in January 2026.

Retirees are advised to:

• Keep tax filings up to date.
• Monitor announcements on Canada.ca.
• Use the OAS estimator tool available on the Service Canada portal to project future increases.

The government remains committed to indexing benefits regularly, ensuring that seniors do not fall behind the cost of living.

OAS and the Broader Retirement System

The OAS is one of three pillars of Canada’s retirement income system, along with:

1. Canada Pension Plan (CPP): Based on lifetime contributions.
2. Private or employer pension plans.
3. Personal savings and investments.

Together, these ensure financial security for seniors post-retirement. For many, OAS represents a foundational income stream — particularly those without large private pensions

What Seniors Should Do Before October 29, 2025

To ensure a smooth deposit of the increased payment, seniors should:

• Verify bank account information in MSCA.
• Confirm tax and residency records are up to date.
• Check email or mail for any Service Canada updates regarding benefit adjustments.

Those newly turning 65 in 2025 should apply early to avoid delays in their first payment cycle.

Looking Ahead: Stability for Canada’s Seniors

The Canada OAS Pension Hike October 2025 reflects the federal government’s ongoing commitment to supporting seniors amid economic uncertainty.

While the increase is modest, it demonstrates the system’s responsiveness to inflation — ensuring that no retiree’s purchasing power erodes due to rising prices.

As inflation continues to fluctuate, the government’s quarterly review system remains a cornerstone of financial stability for millions of Canadian seniors.

(3) Frequently Asked Questions (FAQ)

1. When will the next OAS payment be deposited?
The next OAS deposit is scheduled for October 29, 2025. Payments will include the new 0.7% increase automatically.

2. Do I need to apply for the new increase?
No. If you’re already receiving OAS, Service Canada will automatically adjust your payments — no reapplication required.

3. How much is the OAS after the October 2025 increase?
For seniors aged 65–74, the amount rises to about $740.09 per month. For those 75 or older, it increases to roughly $814.10 per month.

4. Is the OAS pension taxable?
Yes, the OAS is taxable income, though some low-income seniors may qualify for additional non-taxable supplements like GIS.

5. Where can I check my payment details?
You can log into your My Service Canada Account (MSCA) to view your payment history, verify amounts, and update your personal details.