Benefit payments for Canadian seniors are going up slightly in a scheduled increase as retirement is “becoming unaffordable” for many in the country.
July amounts of the Old Age Security (OAS) benefits, going out on Monday, are increasing by 2.8 per cent compared with the previous year after adjusting for inflation.
For the July to September period, OAS benefits are rising by 0.7 per cent, according to the government.
The OAS pension was permanently increased by 10 per cent for seniors aged 75 and over in July 2022. These are monthly taxable payments that go out to Canadians aged 65 years or older.
The amounts are reviewed each year in January, April, July and October to reflect cost of living increases, as measured by the Consumer Price Index (CPI).The OAS pension amount is based on a person’s age, how long they’ve lived in Canada as an adult, and their income.On July 29, eligible seniors aged 65 to 74 years were to receive a maximum monthly amount of up to $718.33.
For those aged 75 and older, the maximum monthly payment is set for $790.16.
On top of the pension, seniors and their partners may also be eligible for extra benefits such as the Guaranteed Income Supplement, Allowance and the Allowance for the Survivor under the OAS program. These three benefits are non-taxable.
For single, widowed or divorced Canadians aged 65 or older and earning an annual net income of less than $21,768, the maximum GIS payment per month for the July to September period is set for $1,072.93.
The maximum monthly allowance for a surviving spouse or common-law partner aged 60 to 64 years is $1,626.20.