Old Age Security to be automatically Increased by almost $100 over the coming year and older Seniors to receive $500 one-time payment in August
July 7, 2021
Today, Canada’s Minister of Seniors, Deb Schulte, announced the highest quarterly adjustment to existing OAS payments since July 2014. She also confirmed that our government will deliver the $500 one-time payment to older seniors, announced in Budget 2021, during the week of August 16, 2021.
This summer’s one-time payment of $500 will support older seniors’ higher expenses, and will apply to 3.3 million seniors who are eligible for the OAS pension in June 2021 and were born on or before June 30, 1947. No action is required by seniors, who will automatically receive the payment if they are eligible.
In July 2021, OAS benefits will also automatically increase 1.3%, bringing the maximum monthly OAS pension amount to $626.49, up from $618.45. Over the coming year, the increase is worth up to $96.48. The Guaranteed Income Supplement (GIS) and the Allowances will also be adjusted for inflation.
Budget 2021 also included a permanent increase of 10% to the OAS pension, to be implemented in July 2022 for seniors aged 75 and over. This will provide an additional $766 to full pensioners over the first year, and will be the first permanent increase to the OAS pension since 1973, other than adjustments due to inflation. It builds on measures to support all seniors, which include restoring the age of eligibility for the OAS pension and the GIS to 65 from 67, strengthening the Canada Pension Plan for future retirees, increasing the GIS for single seniors, raising the GIS earnings exemption and reducing income taxes for all Canadians.
