Luis asks, “When will my Old Age Security (OAS) payments increase now that I am 75?” We look at adjustment dates for the CPP and OAS pensions in Canada. Happy 75th birthday, Luis! I will explain why your Old Age Security (OAS) pension did not increase despite your birthday and what you can expect to happen next. In July 2022, a change was made to OAS so that pensioners aged 75 and older receive a 10% increase in their pension payments.
The reason your pension did not change immediately, Luis, is that the first increased payment occurs the month after you turn 75. So, you can expect to see an increase in your June payment. The increase is automatic, so you do not need to worry about applying.
It is a permanent 10% increase in your payments. The maximum monthly OAS payment for the second quarter of 2025 for Canadians aged 75 and older is $800.44 for those who began their pension at age 65. To receive the maximum, your net world income for the 2023 tax year must have been less than $148,179.
When you first apply to begin your OAS or your Canada Pension Plan (CPP) payments, Service Canada provides guidelines for processing the application. If you apply online, it generally takes less than two weeks. If you mail in an application, it can take up to four months to process.
An OAS pension can begin for Canadians as early as age 65, and a CPP pension can begin as early as age 60. If you apply to begin your pension at the earliest possible opportunity, your OAS will begin the month after you turn 65. Your CPP will begin the month after you turn 60.
There may be advantages to delaying the start of your pensions that you should consider. If you apply for OAS after age 65 or CPP after age 60, you can ask Service Canada to back-date your pension start date. You can receive up to 11 months of retroactive payments from the date your application was received by Service Canada.
OAS payment timelines explained
The payments will be made as a lump sum, and your payment amount will be calculated based on the retroactive start date. In the case of CPP, you cannot receive retroactive payments that begin earlier than the month following your 65th birthday.
If you apply to begin your CPP and continue working, as long as you are under the age of 70, your pension will be increased. Your ongoing CPP contributions will lead to a CPP post-retirement benefit (PRB) that increases your pension. You do not need to apply to be eligible for the PRB; if you are a CPP recipient and continue making CPP contributions, your pension will be adjusted the following January.
OAS and CPP are both subject to adjustments. These increases are calculated based on Statistics Canada’s Consumer Price Index (CPI). OAS is adjusted quarterly in January, April, July, and October.
CPP is adjusted annually in January. Payments will not decrease if the cost of living goes down. If your net income when you file your tax return is high, you might have a portion of your OAS clawed back.
This is called the OAS pension recovery tax. The minimum OAS recovery threshold is $93,454 based on your 2025 income. For those aged 75 and older who delayed their pension to age 70, it can be as high as $157,490.
This adjustment is applied from July to June based on your income for the previous year, which is typically filed in April. The pension recovery tax is re-evaluated annually, and any tax withheld from your OAS pension is claimed on your tax return for that year to reduce tax otherwise payable on your income. Your question, Luis, had a simple answer: 75-year-olds can expect their OAS to increase by 10% the month following their 75th birthday.
It seemed worth noting the other important nuances about OAS and CPP pension payments and adjustments as well, so thanks for the inspiration!