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

From: Employment and Social Development Canada

News release

“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

• 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.

Post Credit: Canada.CA
(https://www.canada.ca/en/employment-social-development/news/2022/07/increase-to-the-old-age-security-pension-for-seniors-aged-75-years-and-older-begins-this-month.html)