Recently, a piece of news has created a stir among Canadian seniors planning for retirement—the news is that Old Age Security (OAS) payments may increase by up to $2,250 from July 2025.
If you also live in Canada, are 65 years of age or older, and are dependent on government assistance after retirement, then hearing this news may have raised many questions in your mind—is this really true? Will every senior get this full amount? Is this a new benefit or a change in an existing plan?
In this article, we will clear up this confusion and explain how the OAS system works, what changes are coming in July 2025, and who can actually get a monthly pension of up to $2,250.
First of all, know: What exactly is this amount of $2,250?
- It is often being told in social media or viral news that all seniors will get $2,250 monthly, but the truth is slightly different from this.
- This amount is actually the maximum possible total of both benefits—Old Age Security (OAS) and Guaranteed Income Supplement (GIS).
- This is not a new plan or a direct increase, but is for seniors who fall in the low-income category and are fully eligible for both plans.
OAS and GIS: What is the difference between these two plans?
This is a monthly pension that the Government of Canada pays to people aged 65 years and above. There is no work experience required—eligibility is based on how many years you have lived in Canada.
- If you have spent at least 40 years in Canada after the age of 18, you will receive the full amount of OAS.
- If you have lived in Canada for a shorter period of time, you may also receive partial OAS.
Old Age Security (OAS):
| Age | Monthly OAS Amount |
|---|---|
| 65–74 years | $727.67 |
| 75 years and above | $800.44 |
Guaranteed Income Supplement (GIS):
GIS is an additional assistance that is given to seniors with low incomes along with OAS. It is completely tax-free and is intended to help seniors who do not have any other regular income such as pension or savings.
The estimated maximum amount of GIS in 2025:
- For a single person: $1,086.88 per month
- This implies that certain elderly people will receive as much as 2,250 dollars a month of aid together with OAS and the GIS.
Will we really get a monthly payment of $2,250 in July 2025?
- Half truth, half myth. This amount of $2,250 is real, but it does not apply to all seniors.
- Only those seniors will be eligible for this maximum amount:
- Those who are 65 years of age or older
- Those who are receiving full OAS
- Those who have very low annual income
- Those who are also eligible for GIS
In case you earn more than the maximum earning threshold where one qualifies to receive GIS, then you will be unable to receive GIS and therefore will not receive the up to 2250 dollars.
How are OAS and GIS calculated?
| Factor | Impact |
|---|---|
| Age | OAS amount increases for those aged 75 and above. |
| Residency in Canada | Must have lived in Canada for at least 10 years after age 18. |
| Income | If annual income exceeds $79,000 in 2025, OAS starts to reduce; it may be fully clawed back above $142,000. |
What changes are happening in July 2025?
In July 2025, there is nothing new to come in benefits, however, it will be the period when the government will review OAS and GIS quarterly. These reviews happen in January, April, July and October each year, and are based on the inflation rate (CPI).
If inflation is high during that time, the OAS and GIS amounts may increase slightly, but there will be no one-time $2,250 payment.
Who is eligible for the $2,250 monthly amount?
You may be eligible for this total amount if:
- You are 65 years of age or older
- You receive the full OAS
- You have no other income (such as a private pension, RRSP, etc.)
- You live alone or are a low-income couple
- You have lived in Canada for 10 years or more
- Provincial plans can also increase your assistance
Some provinces in Canada offer assistance to their citizens beyond OAS and GIS:
- Ontario: A plan called GAINS (Guaranteed Annual Income System) provides additional assistance to GIS.
- Alberta, British Columbia, Quebec: Offer senior supplements or tax credits.
- Combined, some seniors can receive more than $2,250 in monthly assistance.
How to make sure you get the full assistance?
- File income taxes on time: GIS and OAS are determined based on your tax return.
- Apply for OAS on time: You can apply 6 months before you turn 65.
- Report income changes: If there is a change in your income, notify the government immediately.
- Find out about your province’s plans: You may have additional assistance you don’t know about.
Conclusion:
The $2,250 amount isn’t a myth, but it doesn’t apply to all seniors. It can only be received by those who are eligible for both OAS and GIS and who have very low incomes. If you’re planning for retirement in the near future, now’s the right time to make sure you’re eligible for these benefits.
FAQs
1. Is there really a $2,250 increase in OAS pension coming in July 2025?
Answer: No, there is no flat $2,250 increase. The amount refers to the combined maximum monthly payment from both Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) for low-income seniors.
2. Who is eligible for the $2,250 monthly benefit?
Answer: Seniors aged 65+ who qualify for both full OAS and maximum GIS, have low or no income, and meet Canadian residency requirements (at least 10 years after age 18).
3. What is GIS and how does it relate to OAS?
Answer: The Guaranteed Income Supplement (GIS) is a tax-free benefit added to OAS for low-income seniors. It can significantly increase the total monthly pension amount.
4. Is the $2,250 amount guaranteed for all seniors?
Answer: No. Only low-income seniors who qualify for both OAS and GIS may receive this combined total. Others will receive lower amounts based on income and eligibility.
