The Old Age Security (OAS) pension in Canada is a financial assistance program for aged citizens. The Canada Revenue Agency (CRA) adjusts OAS payments quarterly, based on the Consumer Price Index (CPI) to reflect changes in the cost of living.
The most recent adjustment occurred in July 2024, with payments rising by 0.7%.
In this article, we’ll cover the Canada OAS Increase 2024, including changes to the OAS amount and other related benefits, such as the Guaranteed Income Supplement (GIS), Allowance, and Allowance for Survivors.
Canada OAS Increase 2024
The OAS increase in 2024 is based on the CPI, which measures the change in the cost of living due to inflation.
The CRA uses this index to ensure that payments keep pace with inflation, ensuring seniors maintain their purchasing power. Importantly, OAS payments do not decrease during periods of deflation.
The OAS payments and related benefits such as GIS, Allowance, and Allowance for Survivors also saw increases during the July-September period of 2024.
The OAS Increase for this quarter was 0.7%, with updated amounts based on the average CPI over the previous three months.
OAS Payment Amounts for 2024
Here is the updated OAS payment and income limits for July-September 2024. We will also compare these figures to the previous quarter (April-June 2024).
| Age | Annual Net Income (2023) | Maximum Monthly OAS (July-September 2024) |
|---|---|---|
| 65-74 Years | $142,609 | $718.33 |
| 75+ Years | $148,179 | $790.16 |
The maximum OAS amount increased by $4.99 for those aged 65-74 and by $5.49 for those aged 75 and above compared to the previous quarter.
Other OAS Benefits Increases (July 2024)
Alongside OAS, other benefits also increased:
- Guaranteed Income Supplement (GIS): Single individuals with an income below $21,768 receive up to $1072.93 per month.
- Allowance: Couples with a combined income below $40,272 receive up to $1364.17 per month.
- Allowance for Survivors: Surviving spouses with an income below $29,328 receive up to $1626.20 per month.
Calculation of OAS Payment Increase
The 0.7% OAS increase is calculated using the following formula:
(Recent Average CPI – Previous Average CPI)/Previous Average CPI×100\text{(Recent Average CPI – Previous Average CPI)} / \text{Previous Average CPI} \times 100(Recent Average CPI – Previous Average CPI)/Previous Average CPI×100
Using the CPI from February to April 2024 (average 159.7) and the CPI from August to October 2023 (average 158.6), the OAS increase for July 2024 is 0.7%.
The Canada OAS Increase 2024 ensures that seniors receive slightly higher payments to keep up with inflation. With a 0.7% increase, retirees can expect adjustments in their monthly benefits starting in July 2024.
These changes extend to GIS, Allowance, and Allowance for Survivors, helping more seniors maintain financial stability.
FAQs
How much did the OAS increase in 2024?
The OAS increased by 0.7% in July 2024.
What is the maximum OAS payment for those aged 75 and above in 2024?
The maximum OAS payment for seniors aged 75 and above is $790.16 per month.
When are OAS payments reviewed and revised?
OAS payments are reviewed quarterly, in January, April, July, and October.
Who qualifies for the Guaranteed Income Supplement (GIS)?
Single individuals with an income below $21,768 qualify for GIS, with a maximum payment of $1072.93.
How is the OAS payment increase calculated?
The OAS increase is based on the Consumer Price Index (CPI) and is calculated by comparing the average CPI over the previous three months.
