Seniors in Canada can expect a small boost in their OAS pension this summer when they will receive a one-time $500 payment.
This increase is part of changes proposed in Budget 2021 “to improve the financial security of Canadians in retirement after a lifetime of hard work.”
Who is Eligible for the OAS Increases in 2021?
In 2021, you may be eligible for a one-time OAS bonus if you will be turning 75 or older by July 2022 (i.e. born on or before June 30, 1947).
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 also notice 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 July to September 2021 is $626.49 per month (increased from $618.45 in the previous quarter).
During the week of August 16, 2021, eligible seniors will receive a one-time $500 boost in their old age security pension.
3.3 million seniors are expected to benefit from this one-time OAS increase.
If you recall, a similar one-time OAS and GIS top-up was paid to seniors in 2020 at the height of the pandemic.
The OAS is one of the pillars of retirement income in Canada and these updates are expected to cost $5.5 billion.
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:
- Canada Pension Plan Payments
- How To Invest in Retirement
- How Much Money Do You Need To Retire?
- RRSP Transfers
- Should I Delay CPP?
- Retirement Savings by Age
Have questions? Leave them in the comments.