The major announcement to lift Old Age Security (OAS) and Canada Pension Plan (CPP) grants would help Canadian seniors celebrate the year 2025 when it is finally declared by the Canada Revenue Agency (CRA) and the federal government. One of the announcements would include the much-anticipated “OAS pension bonus of $3,100”, dedicated to providing more money for eligible seniors. This given article will provide you with everything you need to know about this OAS pension bonus and all changes to the CPP and OAS for 2025.
What Is The OAS Pension Bonus Of $3,100?
Part of a cumulative increase in Old Age Security payments for seniors aged 75 and older in 2025, the $3,100 OAS pension bonus augments monthly OAS payments because of high costs of living. It is aimed at assisting to provide greater financial cushion to qualify seniors. During the one-year implementation period, seniors would receive the amount of $3,100 monetarily spread out in monthly installments.
Just like seniors aged 75 years and over, seniors aged 65 to 74 are also seeing an increase in the OAS because the increases, even though slightly lower, are for everyone. While this adjustment would mean that seniors of all ages would be covered for inflation-related enhancements, the younger seniors would receive relatively lesser amounts as comparable increases.
Updated Payment Amounts In 2025
Old Age Security (OAS)
Old Age Security Program, or OAS, consists of the following:
- Seniors in the age group 65-74:
- Monthly Payment: Up to $754 (an approximate increase of $39 per month).
- Seniors aged 75 and above:
- Monthly Payment: Up to $815 (an approximate increase of $52 per month).
Canada Pension Plan
CPP Payments to CPP have also been increased to reflect inflation and higher contributions from workers.
- Average CPP Payment: $850 per month (up from $811).
- Maximum CPP Payment: $1,350 per month, for individuals with maximum contributions.
How Bonus Works
The $3100 pension bonus under OAS is disbursed over 12 months which results in higher OAS monthly payouts for qualifying seniors. This increase is automatic and does not require eligible recipients to apply separately for the benefit.
Who Qualifies For The OAS Pension Bonus?
An applicant must satisfy the following:
- Must reach at least 75 years of age.
- Must meet residency requirements of the said country for OAS eligibility, typically living in Canada or anywhere else for a minimum of 10 years after the person has turned 18.
With the amount of increase being meaningful at this stage, it would certainly benefit those from 65 to 74 years old.
When Will Payments Be Made?
The following is the typical monthly schedule for OAS and CPP payments in 2025:
- January 2025: 29 January
- February 2025: 26 February
- March 2025: 28 March
- (and so on throughout the year).
If a payment date occurs on a weekend or holiday, the payment will be made on the last working day prior to the weekend or holiday.
Why The Increase?
The increase in pensions is aimed at the government’s being part of the solution to help Canadian seniors manage everyday living expenses in the light of inflation and constantly rising health costs and other financial challenges.
Maximizing pension payments
- Delay OAS and CPP Payments: If possible, do not make any OAS and CPP payments until you reach the age of 70.
- Check Eligibility: Ensure that you have fully met all requirements for the OAS pension bonus and GIS (if applicable).
- Manage Budget, Using from Time to Time Extra Income to Accompany Essentials or Afford Investment in Long-Term Saving.
Also Read: Canada Work Visa 2025: Get A Canada Work Visa Without A Job Offer In 2025