Canadian seniors are set to receive a scheduled top-up in benefits as the Liberal government faces pressure to increase payments for those under the age of 75 years.
October payments of the old age security (OAS) pension will roll out on Tuesday to eligible Canadians aged 65 years or older.
OAS amounts are reviewed each year in January, April, July and October to reflect cost-of-living increases, as measured by the Consumer Price Index (CPI).
For the month of October, the benefits are increasing by 2.8 per cent compared with the previous year, based on CPI changes.
For the October to December period, OAS benefits are rising by 1.3 per cent, according to the government.
The OAS pension was permanently increased by 10 per cent for seniors aged 75 and above in July 2022.
How much will seniors get?
The OAS pension amount is based on a person’s age, how long they’ve lived in Canada as an adult and their income.
On Oct. 29, eligible seniors aged 65 to 74 years will receive a maximum monthly amount of up to $727.67. In order to be eligible for the OAS payment, a person’s annual net world income in 2023 must be less than $148,451.
Get weekly money news
Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
For those aged 75 and older, the maximum monthly payment is set for $800.44, provided their annual net world income in 2023 was less than $154,196.
However, if a person’s net annual income for 2023 is higher than $90,997, they will have to repay part of or the entire OAS pension.
To be eligible for the OAS payment, a person must be at least 65 years old. Employment status is not a requirement.
On top of the pension, seniors and their partners may also be eligible for extra benefits such as the guaranteed income supplement, allowance and the allowance for the survivor under the OAS program. These three benefits are non-taxable.
Bloc pushing for an increase in OAS payments
The Bloc Québécois has given the Liberals a Tuesday deadline to greenlight spending for its private member’s bill to increase old age security payments for seniors under the age of 75.
If the government doesn’t support the bill by then, Bloc Leader Yves-François Blanchet has said he will enter talks with other parties to bring down the Liberal minority government before the new year.
Most Liberals voted against a non-binding Bloc motion earlier this month calling for the government to give a royal recommendation to a bill that would increase pensions for seniors under the age of 75 by 10 per cent, a plan estimated to cost $16 billion over five years.
The Liberals increased old age security payments for people over the age of 75 in 2022, with the intention of targeting the most vulnerable seniors, but the other opposition parties have backed the Bloc push to expand the measure to those aged 65 to 74.
A majority of Canadians (64 per cent) who were recently surveyed by Angus Reid said they would support the increase in OAS payments for those aged 65 to 74.
— with files from The Canadian PressÂ
© 2024 Global News, a division of Corus Entertainment Inc.
