John Hughie
As the cost of living continues to rise across Canada, seniors receiving the Old Age Security (OAS) are in for a timely financial boost this July 2025.
With a 1% increase applied to OAS benefits, eligible older adults will see monthly payments of up to $735.35, and even more for those aged 75 or older.
This uplift is part of the government’s ongoing effort to support fixed-income seniors facing growing expenses.
What Is the $735 OAS Payment?
The Old Age Security program is a government-funded pension meant to provide income support to Canadian seniors.
The benefit is reviewed quarterly and adjusted according to the Consumer Price Index (CPI). In the July to September 2025 quarter, the government has applied a 1.0% increase to reflect inflationary pressures.
- Seniors aged 65–74 will now receive $735.35 per month.
- Seniors aged 75 and above will receive $808.44 per month, which includes a permanent 10% senior supplement.
Eligibility Criteria for the OAS $735 Payment
To receive the July 2025 Old Age Security payment, seniors must meet the following requirements:
- Be 65 years of age or older.
- Be a Canadian citizen or legal resident at the time of approval.
- Have resided in Canada for at least 10 years since the age of 18.
OAS July 2025 Payment Breakdown
| Age Group | Monthly OAS Payment | Additional Notes |
|---|---|---|
| 65–74 years old | $735.35 | Standard OAS rate with July increase |
| 75+ years old | $808.44 | Includes 10% permanent senior supplement |
| Low-income recipients | May receive GIS/Allowance | Must apply separately based on income |
When Will You Be Paid?
The Old Age Security payment for July 2025 will be made near the end of the month, usually on the third-to-last business day.
Expect the payment between July 27 to July 29, 2025, depending on your financial institution’s processing speed. Most beneficiaries receive their money via direct deposit.
Important Notes on Tax and Clawbacks
- OAS is taxable income, so recipients must report it on their annual tax returns.
- There is no automatic tax withholding, so budgeting is important.
- If your annual income exceeds $90,997, your Old Age Security benefit may be reduced through a clawback.
- The benefit is fully phased out at an income of:
- $148,541 for those aged 65–74
- $154,196 for those aged 75 and over
How to Maximize Your OAS Benefits
- You can defer Old Age Security for up to five years, gaining 0.6% more per month, or up to 36% extra overall.
- Seniors with low income should also apply for:
- Guaranteed Income Supplement (GIS)
- Allowance or Allowance for the Survivor
These can be combined with Old Age Security to provide significantly higher monthly support.
What Should You Do Now?
Here are the key next steps to make sure you get your Old Age Security on time:
- Verify your eligibility – Make sure your age, citizenship, and residency match the criteria.
- Check your account – Ensure your banking information is current with Service Canada for direct deposit.
- Plan for taxes – If your income is high, prepare for potential clawbacks.
- Explore GIS or Allowance – If you’re a low-income senior, apply to boost your monthly support.
- Enroll early – If you’re turning 65 soon, ensure your Service Canada profile is up to date for automatic enrolment.
The Canada Old Age Security $735 payment in July 2025 represents a crucial step in helping seniors cope with ongoing inflation.
With a modest yet meaningful increase, this financial relief ensures that older Canadians can maintain their standard of living.
If you qualify, make sure your details are up to date, and explore additional support options like GIS or the Allowance to maximize your benefits. Stay informed and proactive to get the most from your retirement entitlements.
FAQs
How can I check if I’m eligible for the OAS $735 payment?
To qualify, you must be 65 years or older, a Canadian citizen or legal resident, and have lived in Canada for 10 years or more since turning 18.
When will the OAS July 2025 payment be deposited?
The payment is expected to arrive between July 27 and July 29, 2025, via direct deposit.
Can I receive both OAS and GIS?
Yes, low-income seniors may qualify for both the Old Age Security and the Guaranteed Income Supplement (GIS) to increase monthly income.
