In November 2025, Canadian seniors will see a modest but important increase in their Old Age Security (OAS) payments.
The government has announced a 0.7% adjustment for the October to December 2025 quarter, reflecting the rise in the cost of living. This automatic increase aims to help seniors keep up with inflation and maintain their purchasing power.
What Is the OAS Cost of Living Increase?
The OAS Increase is a quarterly adjustment made by the Canadian government to ensure that seniors’ pension payments keep pace with inflation. This adjustment is based on the Consumer Price Index (CPI), which measures the average change in prices over time for goods and services.
The 0.7% increase for the October to December 2025 quarter means that eligible seniors will receive slightly higher monthly payments, helping them manage rising costs.
Key Details of the November 2025 OAS Increase
Here’s a breakdown of the important information regarding the OAS Increase:
| Detail | Information |
|---|---|
| Increase Rate | 0.7% for October–December 2025 |
| Annualized Change | Approximately 1.7% increase from October 2024 to October 2025 |
| Maximum OAS (Ages 65–74) | Approximately CAD $740.09/month |
| Maximum OAS (Ages 75+) | Approximately CAD $814.10/month |
| Payment Date | November 26, 2025 |
| Application Required? | No — adjustment happens automatically |
| Inflation Measure Used | Consumer Price Index (CPI) |
These adjustments are automatic and do not require any action from recipients. Payments will be deposited into bank accounts or mailed as cheques, depending on the recipient’s chosen method.
Why Does This Increase Matter?
While a 0.7% increase might seem small, it can make a significant difference for seniors living on fixed incomes. Even a modest boost helps offset the rising costs of essentials like food, utilities, and healthcare.
For example, a senior receiving CAD $740 per month will see their payment increase by about CAD $5.18, totaling an extra CAD $62.16 annually.
Financial advisors and retirees should consider this increase when updating budgets and financial plans. It’s also important to monitor the OAS clawback threshold, as higher incomes can lead to a reduction in OAS Increase benefits.
Understanding the OAS Clawback
OAS Increase: The OAS clawback, also known as the OAS recovery tax, applies to seniors whose net income exceeds a certain threshold. For the 2025 tax year, the threshold is approximately CAD $90,997.
For every dollar above this amount, the OAS payment is reduced by 15 cents. Once income reaches about CAD $148,000, the OAS Increase benefit may be fully clawed back.
It’s crucial for higher-income seniors to be aware of this threshold to avoid unexpected reductions in their OAS payments.
Tips for Seniors to Manage the Increase
- Review Your Budget: Incorporate the increased OAS payment into your monthly budget to better manage expenses.
- Monitor Your Income: Ensure your income stays below the clawback threshold to maintain full OAS benefits.
- Plan for Future Increases: Stay informed about upcoming cost of living adjustments to anticipate future changes in your OAS payments.
- Consult a Financial Advisor: Seek professional advice to optimize your financial planning and retirement strategy.
OAS Increase: The 0.7% OAS cost of living increase in November 2025 is a positive step in helping Canadian seniors cope with inflation. While the increase is modest, it contributes to maintaining the purchasing power of OAS recipients.
Seniors should stay informed about their payment schedules, understand the implications of the clawback, and plan their finances accordingly to make the most of this adjustment.
FAQs
How often does the OAS cost of living increase occur?
The OAS cost of living increase is reviewed and adjusted quarterly—every January, April, July, and October—based on changes in the Consumer Price Index (CPI).
Do I need to apply for the OAS cost of living increase?
No, the increase is automatic. If you’re already receiving OAS, your payment will be adjusted without any action required on your part.
Can my OAS payment be reduced?
Yes, if your net income exceeds the clawback threshold, your OAS payment may be reduced. It’s important to monitor your income to avoid this.