anada’s Old Age Security (OAS) program is an essential lifeline for many seniors, providing regular income to help them meet their financial needs in retirement.
As living costs continue to rise, adjustments to OAS payments ensure that retirees maintain their purchasing power. In September 2024, an OAS increase will take effect, helping seniors keep up with inflation and growing expenses.
In this article, we’ll break down everything you need to know about the OAS increase, payment dates, eligibility requirements, and how to maximize your benefits.
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Canada OAS Increase in September 2024
Starting in September 2024, OAS payments will increase due to cost-of-living adjustments (COLA), which are designed to keep payments in line with inflation. This change provides crucial financial support for seniors who depend on these benefits to manage their daily expenses.
Key Information
| Details | Key Information |
|---|---|
| OAS Increase (Sept 2024) | Linked to cost-of-living adjustments (COLA) |
| Payment Date | September 27, 2024 |
| Eligibility | Canadians 65+ who meet the residency requirements |
| How to Apply | Automatic enrollment at 65, or through a manual application |
| Source | Government of Canada – OAS |
Why Is the OAS Payment Increasing?
OAS payments are adjusted quarterly (January, April, July, and October) based on changes in the Consumer Price Index (CPI), which measures inflation. The adjustment ensures seniors’ income keeps pace with the rising cost of living. Given the recent economic challenges, including higher prices for food, housing, and healthcare, these adjustments are vital for ensuring seniors don’t fall behind financially.
The September 2024 increase will reflect the changes in inflation for the second quarter of 2024. Although the exact percentage of the increase will depend on CPI data, past trends suggest it will provide notable relief for retirees.
How Much Will OAS Payments Increase?
While the exact increase will only be known once the CPI for Q2 of 2024 is finalized, previous adjustments offer insight. In July 2023, OAS payments increased by $18.81 for seniors aged 75 and older and by $14.68 for those aged 65 to 74. A similar or potentially higher increase is expected for September 2024, depending on inflation.
The following example illustrates how these increases work:
- Current OAS Payment (Aged 65-74): $615.37 per month
- Current OAS Payment (Aged 75 and Older): $678.02 per month
- Estimated Inflation Rate: 2% (hypothetical example)
- New Payment Estimate (Aged 65-74): $615.37 × 1.02 = $627.68
- New Payment Estimate (Aged 75 and Older): $678.02 × 1.02 = $691.58
The increase ensures that seniors continue to afford essential goods and services despite rising prices.
Understanding the Old Age Security (OAS) Program
The Old Age Security (OAS) program is one of Canada’s main retirement benefits. Unlike the Canada Pension Plan (CPP), which is based on an individual’s work history and contributions, OAS is funded through general tax revenues and is available to seniors who meet basic residency requirements.
Eligibility Requirements
To be eligible for OAS, you must be:
- Aged 65 or older: OAS payments begin at age 65, but individuals can defer their payments for higher monthly amounts.
- Meet residency requirements: You must have lived in Canada for at least 10 years after the age of 18 to qualify for a partial pension. To receive the full pension, you need to have lived in Canada for 40 years after turning 18.
If you are not automatically enrolled, you can apply through your My Service Canada Account or by submitting a paper application.
