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The federal government is increasing Old Age Security pensions in its effort to better support seniors across Canada. This latest increase showcases how the government is working towards
The federal government is increasing Old Age Security pensions in its effort to better support seniors across Canada. This latest increase showcases how the government is working towards making the income of seniors steadily predictable amidst an increase in living costs.
This quarter, the OAS pension will see a hike of 3.3% due to the government’s inflation-linked adjustment mechanism in place for the pension, so a hike of this nature will give seniors aged 65 and over higher monthly income via OAS, reflecting the latest developments on the Consumer Price Index.
Come October 2024, eligible seniors can expect their monthly OAS payments to go up to about $756.32 for the age group 65-74 and $831.64 for those 75 and over. The amount in excess for the latter is still part of the 10% permanent increase introduced in 2022 to ensure older seniors get extra financial stability.
For the last couple of years, inflation has badly hit the elderly population in Canada owing to an increased cost of living because of housing, healthcare, and consumables. This would not only make it easier for the seniors to handle their finances but also put those seniors at ease who receive government pensions as their only source of income.
Besides, the majority of seniors depend on GIS benefits in addition to OAS. Similarly, GIS recipients will make full use of the rise in OAS, although the actual changes to GIS will vary depending on individual incomes.
The Old Age Security pension is a government-funded benefit for citizens or permanent residents of Canada who have at least 10 years of residence in Canada since their 18th birthday. Because it does not depend on work or work contributions previously made, this pension classifies a wide range of seniors for eligibility.
It automatically increases for everyone eligible; there are no further applications required. Seniors can be informed that new amounts will be reflected in their next deposit of the OAS.
The new payments of OAS begin in October 2024 and continue rolling out in waves on an ongoing payment schedule. Seniors can expect to see the updated amount through their My Service Canada Account.
This increase in the OAS is part of a continuing effort of the Government to ease the financial burdens borne by Canadian seniors, many of whom struggle to cope with the higher cost of living. Beyond adjusting pensions, the federal government has also taken steps to lower healthcare costs, provided tax relief in targeted ways, and increased the supply of affordable housing.
The further policy development in the future is foreseen with an aging population, keeping in mind that they receive adequate financial support and a decent quality of life.
