Increase in the Old Age Security pension for seniors aged 75 and older begins next week

GATINEAU, QC, July 21, 2022 /CNW/ - Employment and Social Development Canada

The Government of Canada is committed to supporting seniors after a lifetime of hard work. That's why the Government of Canada has taken historic measures to improve financial security for the oldest seniors.

Today, the Honourable Kamal Khera, Minister of Seniors, and the Honourable Pablo Rodriguez, Minister of Canadian Heritage and Quebec Lieutenant, announced that the Old Age Security (OAS) pension has permanently increased by 10% for seniors aged 75 and over. This means that full pensioners will get more than $800 extra over the first year.

This will be the first permanent increase to the OAS pension since 1973, other than adjustments due to inflation. It will strengthen the financial security of 3.3 million seniors. Eligible seniors will not have to take any action to receive this increase?their payments will be automatically increased.

This increase follows a one-time payment of $500 that the Government of Canada provided in August 2021 to seniors who were eligible for the OAS pension in June 2021 and born on or before June 30, 1947. The one-time payment was provided to help address the immediate needs of this group of seniors. Both measures were announced in Budget 2021.

These measures are part of broader work to support the financial security of seniors of all ages, including the following:

• restoring the age of eligibility for the OAS pension and the Guaranteed Income Supplement (GIS) to 65 from 67;
• enhancing the Canada Pension Plan for future retirees;
• increasing the GIS for single seniors;
• raising the GIS earnings exemption; and
• amending the Old Age Security Act to exclude federal pandemic benefits from the calculation of income for GIS/Allowance purposes.

Quote 

"The permanent increase to the OAS pension will help provide older seniors with greater financial security now and in the future. Younger seniors?and all Canadians?can enjoy greater peace of mind while planning their retirement finances, knowing they will be able to count on more support from the OAS pension in their later years."
? The Honourable Kamal Khera, Minister of Seniors

"Today's announcement is further evidence of our concrete commitment to deliver for seniors in Quebec and across Canada. Since the beginning of the pandemic, we've promised not to leave anyone behind and that's what we've done, through a one-time payment and various programs that have made a real difference for seniors in our communities. Now that we're talking about recovery, we are making that commitment again and we'll do what it takes to ensure all Canadians can age safely and with dignity. We will always continue to work to deliver for seniors!"
? The Honourable Pablo Rodriguez, Minister of Canadian Heritage and Quebec Lieutenant

"The mental, physical and financial security of seniors must remain a priority for all governments. Groupe Sélection is happy to see the increase of the OAS for those 75 and over and will always be there to support measures that improve the quality of life of older Canadians."
? Réal Bouclin, Founding President and Chief Executive Officer of Groupe Sélection

Quick Facts

• The objective of the OAS program is to ensure a minimum income for seniors and help reduce the incidence of low income among Canada's seniors. The OAS benefits include: the OAS pension, which is paid to all individuals aged 65 and older who meet the residence requirements; the GIS for low-income seniors; and the Allowances for low-income Canadians aged 60 to 64 who are the spouses or common-law partners of GIS recipients, or who are widowed or widowers.
• All OAS benefits are indexed on a quarterly basis (in January, April, July and October), so that they maintain their value over time, even as prices increase. Increases to OAS benefits are calculated using the Consumer Price Index, which measures changes in prices paid by Canadian consumers for goods and services. The Consumer Price Index is the mostly widely used indicator of price changes in Canada. If the cost of goods and services goes down, OAS benefits do not decrease. OAS payment amounts will only increase or stay the same.
• In July 2022, as a result of quarterly indexation, maximum OAS benefits increased by 2.8%.
• Older seniors make up one of the country's fastest-growing demographics, and the population of people aged 85 and over is expected to triple over the next 25 years.
• In 2018, among OAS pensioners aged 75 and over, 59% had incomes below $30,000, compared to 52% of those aged 65 to 74.
• In 2020, 39% of OAS pensioners aged 75 and over received the GIS, compared to 29% of those aged 65 to 74.
• In 2020, among OAS pensioners aged 75 and over, 57% were women, compared to 52% among those aged 65 to 74.

Related Products

Backgrounder: Government of Canada financial supports for seniors
Backgrounder: Increased costs for older seniors

Associated Links

Old Age Security
Guaranteed Income Supplement
Consumer price index portal
Budget 2021
Older seniors to receive one-time payment of $500 next week

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SOURCE Employment and Social Development Canada