Extra Money for Seniors 75+: The Permanent OAS Increase
The Canadian government implemented a significant change to the Old Age Security (OAS) program, providing extra financial support for older seniors [1]. As of July 2022, all OAS recipients aged 75 and over receive a permanent 10% increase to their monthly pension [1]. This adjustment is designed to help address the potentially higher costs faced by this age group [1]. The increase is applied automatically to eligible seniors' payments, meaning no extra application is necessary [1]. This results in a higher maximum monthly OAS payment for those aged 75 and older compared to those aged 65 to 74 [1].
The Guaranteed Income Supplement (GIS) and Beyond
Beyond the 10% OAS increase for seniors over 75, many low-income seniors can receive additional support through the Guaranteed Income Supplement (GIS) [1]. GIS is a non-taxable monthly benefit for OAS recipients with low annual income and is also indexed quarterly to the cost of living [1]. To ensure correct GIS payments, seniors need to file their taxes annually, as the amount is based on the previous year's net income [1].
Benefit Comparison: Seniors 65-74 vs. 75+
| Feature | Seniors Aged 65-74 | Seniors Aged 75+ |
|---|---|---|
| OAS Increase | No 10% age-based increase | Permanent 10% increase to OAS pension |
| OAS Payment Rate | Standard OAS amount | Standard OAS amount + 10% |
| GIS Eligibility | Eligible if low income | Eligible if low income |
| GIS Payment Calculation | Based on marital status and net income | Based on marital status and net income |
| Quarterly Indexation | Yes, based on CPI | Yes, based on CPI (on the higher amount) |
Impact of Inflation: Quarterly Indexation
To help maintain purchasing power against the rising cost of living, both OAS and GIS payments are adjusted quarterly based on the Consumer Price Index (CPI) [1]. This means payments can potentially increase every three months [1]. For seniors over 75, this indexation is applied to their already higher OAS amount [1].
Accessing Other Provincial and Territorial Supports
In addition to federal benefits, Canadian seniors, including those over 75, may be eligible for various provincial and territorial programs [1]. These supports differ across Canada and can include benefits like tax credits, housing assistance, or healthcare aid [1]. Exploring the specific programs available in your province or territory is recommended [1]. For comprehensive details on federal benefits, you can visit the official Service Canada website [1].
What You Need to Know: Eligibility and Payments
Eligibility for OAS is primarily based on age (65+) and residency in Canada [1]. To receive the 10% increase, you must be 75 or older [1]. While many are automatically enrolled for OAS, some may need to apply [1]. GIS requires an application and continued annual tax filing to verify income [1]. OAS and GIS payments are typically made on the last banking day of the month, often through direct deposit [1]. Keeping Service Canada informed of any personal or income changes is important for accurate and uninterrupted benefits [1].
Tax Implications of Senior Benefits
Understanding the tax treatment of senior benefits is important for financial planning [1]. The OAS pension, including the 10% increase for those 75+, is considered taxable income [1]. Depending on your income level, a recovery tax (clawback) may apply if your net income exceeds a certain threshold [1]. In contrast, the Guaranteed Income Supplement (GIS) is a non-taxable benefit and does not count as income for tax purposes [1].
Conclusion: Navigating Senior Benefits with Confidence
For those wondering, "are seniors over 75 getting extra money in Canada?", the answer is yes, due to the permanent 10% OAS increase implemented in 2022 [1]. This, along with quarterly indexation and potential GIS eligibility, provides valuable financial support for Canada's older population [1]. Staying informed about eligibility and filing taxes annually are key steps to receiving entitled benefits [1]. This enhanced support contributes to the financial security and healthy aging of seniors across the country [1].
