Canadian Seniors to See Increased Old Age Security Payments Amid Rising Costs
Canada’s Old Age Security (OAS) program is set to increase payments for seniors across the country, in response to rising inflation and cost-of-living concerns. This scheduled increase will benefit eligible seniors aged 65 and above, as the government aims to support those who rely on the OAS pension as a vital part of their retirement income.
Starting on October 29, 2024, seniors aged 65 to 74 will receive up to $727.67 per month, a rate adjusted to reflect a 2.8% year-over-year increase in the Consumer Price Index (CPI). Meanwhile, those aged 75 and older, who previously received a 10% permanent increase in 2022, will see monthly benefits of up to $800.44. These regular adjustments to the OAS are intended to counteract the effects of inflation and provide some relief for seniors coping with rising costs of necessities like food, housing, and healthcare.
The OAS program has always been tied to CPI-based adjustments, with updates occurring quarterly in January, April, July, and October. These adjustments ensure that the pension payments evolve with inflation rates, helping to protect the purchasing power of Canadian seniors. While this year’s increase may seem modest, it marks a meaningful step in helping retirees handle the financial pressures brought about by the higher cost of living.
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Eligibility for the OAS program remains largely unchanged. Any Canadian citizen or permanent resident aged 65 or older who has lived in Canada for at least 10 years as an adult may qualify. Additionally, income plays a role: seniors with an annual income above a certain threshold may see a partial or total reduction in their OAS benefits. For 2023, for example, individuals earning more than $90,997 will experience a clawback on their OAS, while anyone earning over $148,451 is ineligible for the payment. This system aims to allocate resources toward seniors who may need it most.
Beyond the OAS, seniors may qualify for non-taxable supplements such as the Guaranteed Income Supplement (GIS), as well as the Allowance and Allowance for the Survivor, providing additional financial support for those with lower incomes. These programs serve as an essential financial safety net, significantly enhancing the quality of life for retirees facing economic challenges.
Recent discussions around further increasing OAS payments have stirred political debate. The Bloc Québécois recently proposed an increase in benefits for seniors aged 65 to 74, aiming to extend the 10% increase currently available only to those over 75. However, the Liberal government rejected this non-binding motion, leading Bloc leader Yves-François Blanchet to consider cooperation with other parties to push for an OAS increase.
Amid these discussions, public support is growing for a more inclusive approach to OAS benefits. In a recent Angus Reid survey, 64% of Canadians indicated they would support expanded benefits for seniors aged 65 to 74. This reflects a growing awareness of the financial difficulties facing seniors and the pressing need for more robust support.
Ultimately, while the scheduled increases will bring some relief, many advocates and seniors’ groups continue to call for more substantial and sustained improvements to Canada’s OAS program. For now, eligible seniors can look forward to an increase in October, with the next quarterly review set for January 2025.
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