Canada’s seniors are getting some more money.
Yesterday the federal government announced the highest quarterly adjustment to Old Age Security (OAS) payments since 2014.
Deb Schulte, Canada’s Minister of Seniors, also confirmed that her government will be providing a one-time payment to older seniors (those aged 75 and up) of $500 during the week of August 16th.
“We looked at data and saw that older seniors were more financially challenged,” said Schulte. “We saw there was a need and we made a promise and we delivered on that promise in our 2021 budget (10 percent increase to the OAS pension for seniors begins in July of 2022). In order to provide immediate support, we’re issuing a one-time payment of $500 to immediately provide the support we promised.”
August’s one-time payment will apply to 3.3 million seniors who are eligible for the OAS pension in June 2021 and were born on or before June 30, 1947. No action is required by seniors, who will automatically receive the payment if they are eligible.
In July 2021, OAS benefits will automatically increase 1.3 per cent, bringing the maximum monthly OAS pension amount to $626.49 from $618.45. Over the coming year, the increase is worth up to $96.48. The Guaranteed Income Supplement (GIS) and the Allowances will also be adjusted for inflation.
Budget 2021 also included a permanent increase of 10 percent to the OAS pension, to be implemented in July 2022 for seniors 75 and over. This will provide an additional $766 to full pensioners over the first year and will be the first permanent increase to the OAS pension since 1973, other than adjustments due to inflation.
Schulte says it builds on measures to support all seniors, including restoring the age of eligibility for the OAS pension and the GIS to 65 from 67, strengthening the Canada Pension Plan for future retirees, increasing the GIS for single seniors, raising the GIS earnings exemption and reducing income taxes for all Canadians.