OAS Benefit Increase and Changes in 2022

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by Enoch Omololu

Updated

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Seniors in Canada received a small boost in their OAS pension last summer when they were paid a one-time $500 payment.

This increase was part of changes proposed in Budget 2021 “to improve the financial security of Canadians in retirement after a lifetime of hard work.”

Some seniors will also see an increase in their OAS benefits in 2022.

Who is Eligible for the OAS Increases in 2022?

Starting in July 2022, older Canadians who are aged 75 and older will see a 10% increase in their monthly OAS pension payment.

If you are a current recipient of OAS, you will have also noticed a 1.3% increase in your regular benefits starting in July 2021.

This increase reflects the inflation rate and quarterly indexing to the Consumer Price Index.

How Much OAS Will You Get?

The maximum OAS benefit from April to June 2022 is $648.67 per month.

Depending on what the OAS rates are in the third quarter (when the July 2022-June 2023 payment period starts), you can expect a 10% boost if you are 75+.

Conclusion

The OAS is one of the pillars of retirement income in Canada.

You get the full regular OAS amount if you have lived in Canada for at least 40 years since turning 18. If you do not meet the 40-year requirement, you get a partial payment.

Seniors can choose to delay OAS for up to 5 years in exchange for higher payments.

Lower-income seniors may qualify for OAS and the Guaranteed Income Supplement.

Learn more about retirement income sources:

Have questions? Leave them in the comments.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

16 thoughts on “OAS Benefit Increase and Changes in 2022”

  1. Why did our pension go down from $876.95 each to$647.69 that is a lot to take off a senior a month (OAS)

  2. Why immigrants are not getting OAS for years before they moved to Canada, but they have to pay double tax for foreign pension, earned in full before they moved to Canada?

    • @Ricz: I am not very familiar with the taxation on foreign pensions. I assume the tax rate will depend on whether the country you are coming from has a tax agreement with Canada?

  3. My wife and I are both 81. We did not receive the $500 payment which I understand was to be paid in August. Am I wrong?

  4. What is the thinking of just people over 75 getting the increases? People between 65-75 are wealthy? We are all seniors and can use the money.

  5. Why can seniors 65 and older receive the amount 75 and older will be getting?
    Just dental and health is what I need. Not fair

  6. Why are seniors not receiving the same benefits as those are 75 and older?
    I need more for medication ,dental.,and my herniations in my back. Not affordable to these no matter the health inusrances.,which i looked at.

  7. How can seniors live on CPP and OAS it is well below poverty.there was a raise of 1%. How can a country as rich as Canada ignore the needs of seniors. Many people especially woman did not have the opportunity to make enough money to save for their retirement and they were in low paying jobs with no benefits. All government employees receive a good pension paid by all Canadian citizens why don’t all seniors receive enough to live on. With the increased rise in housing and food it is impossible. The golden years are not golden.
    I Need to know who do I contact to get this changed it’s disgusting.

  8. Only seniors who are 75 as of July 1, 2022 received the $500 last year. They will also get an increase after July 1. Seniors who are 75 from July 1 to Dec 31 this year got $0 and will get $0 increase. I asked the former Minister for Seniors and the new Minister for Seniors what about those 75 after July 1. Both could not or would not answer why they get $0. I told them it was discrimination based on the month you were born in in the same same.

  9. Here we go again the seniors 65-75 are being ignored. Do the Liberals things are cheaper for us? What seems to be the problem? Well let me see. Stupidity, ignorance, discrimination? All of these? I am so fed up with the Liberals I will be making a change zt the polls first chance I get. I don’t think the Liberals will get a surprise when they loose the next election. Looks like a foregone conclusion to me.

  10. I think it is disgusting that only seniors from 75 and up will get a 10% increase in July 2022. A senior is considered senior at age 65. So much of our canadian money is wasted on overseas handouts and yet we paid our taxes all our lives and get shafted. Shame on you. If your going to up the OAS for people 75 and older it must be increased for all seniors 65 and up. Last year they got a bonus of $500.00 too. Another thing that we end up paying is that blues fest. I don’t want to give them my money. Such a farce is our government.

  11. I don’t understand why only seniors over 75 are getting increases! Do we have a 2 tier system for seniors now? I need the increase at 70 also. This is BS & should apply to all seniors.

  12. I guess not too many people above 75 are still alive. Those who are alive are struggling with increased cost of living.

  13. When does the 10% increase start?
    I received my oas & cpp on June 28th. It was the same amount as usual I thought that was July/22 payment so i was expecting the increase.
    This is not a complaint. Just wondering

    • @Faye: OAS amounts will be indexed in July and I believe this is when the increase starts.

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