Minister of Seniors, Deb Schulte announced that older seniors will receive a $500 one-time payment during the week of August 16, 2021.
3.3 million seniors who are eligible for the OAS pension in June 2021 and who were born on or before June 30, 1947, will automatically receive the one-time payment of $500, announced as part of Budget 2021.
The government also said that OAS benefits will automatically increase 1.3%, bringing the maximum monthly OAS pension amount to $626.49, up from $618.45.
Next year, OAS will increase by $96.48.
In addition to this, the first permanent increase to the OAS pension since 1973 will occur in July 2022, and OAS pension will increase by 10% for seniors aged 75 and over, providing an additional $766 to full pensioners over the first year.
All OAS benefits (the OAS pension, the GIS and the Allowances) are indexed on a quarterly basis in January, April, July and October so benefits don’t lose value over time. Increases to OAS benefits are calculated using the Consumer Price Index, which measures changes in prices paid by Canadian consumers for goods and services, and is the most widely used indicator of price changes in Canada. If the cost of goods and services goes down, OAS benefits do not decrease. OAS payment amounts will only increase or stay the same.
The government says 84% of OAS pensioners have individual incomes below $50,000.
The annual value of the monthly OAS pension has increased to $7,516 per year from $6,404 per year over the past decade.
By 2030, the number of seniors is expected to reach 9.4 million, representing close to one quarter of Canada’s population.
The maximum OAS pension is payable to seniors aged 65 and over who lived in Canada for at least 40 years after age 18. Partial pensions are payable if they lived in Canada for at least 10 years or qualified under International Social Security Agreements.