Canada’s $1,280 OAS Payment In March 2025 – Who Qualifies & When To Expect It?

$1,280 OAS pension payment in March 2025 – eligibility, date and other important information

In March 2025, eligible Canadian seniors can receive Old Age Security (OAS) pension payments. It is an important part of Canada’s public pension system, which aims to provide financial support to people aged 65 years and above.

It is very important to know the eligibility criteria, payment amount, and important dates to receive OAS pension so that seniors can get the most out of this scheme.

What is Old Age Security (OAS)?

Old Age Security (OAS) is a monthly pension payment made to senior citizens by the Government of Canada.

Difference between OAS and Canada Pension Plan (CPP):

• CPP is available to those who have contributed to it during their job.
• OAS is funded by the government’s General Tax Revenue and it is not necessary to work for it throughout life.

OAS exists for generating consistent post-retirement earnings which enable senior citizens to handle their essential requirements.

Eligibility Criteria for OAS Pension

If you want to apply for OAS pension, you must fulfill the following conditions:

• Age: The applicant must be at least 65 years of age or older.
• Citizenship: The applicant must be a Canadian citizen or permanent resident at the time of application.

Residence Period:

• If you live in Canada, it is mandatory to live in Canada for at least 10 years after the age of 18.
• If you live outside Canada, it is necessary to live in Canada for at least 20 years after the age of 18.

Note:

If a person has resided in Canada for less than 40 years, he will get a partial payment of OAS. This payment will be decided in proportion to (years spent in Canada ÷ 40).

OAS pension payment amount for January to March 2025

The OAS pension payment is updated every quarter based on inflation and the Consumer Price Index (CPI).

The maximum monthly OAS payment seniors can receive until March 2025 is:

Age Group	Maximum Monthly Payment
65 to 74 years	$727.67
75 years and over	$800.44

• $1,280 per month (if all conditions are met)

Non-taxable GIS benefits – additional help for low-income seniors

If a senior is receiving an OAS pension but has a very low income, he or she can also avail of the Guaranteed Income Supplement (GIS).

• GIS is a non-taxable payment intended to financially support low-income seniors.

The amount of the GIS payment depends on your income and marital status.

Marital Status	Maximum Monthly GIS	Maximum Annual Income
Single, widowed, or divorced	$1,086.88	$22,056
Married/common-law partner (both receive OAS)	$654.23 each	$29,136 (combined)
Married/common-law partner (one receives OAS)	$1,086.88	$52,848 (combined)

March 2025 OAS pension payment date

The OAS payment is usually issued on the third to last business day of each month.

The date of OAS pension payment in March 2025 will be:

• March 27, 2025

Tip:

Make sure your bank account is updated so that there is no delay in payment.

OAS payment deferral option – a way to get more pension

OAS pension can be deferred for up to 5 years, i.e. you can postpone it till the age of 70.

Benefits:

If a senior citizen decides not to take OAS payment at the age of 65 and take it later, the payment will increase by 0.6% every month.

• Deferment for 1 year: Payment will increase by 7.2%.
• Deferment for 5 years: Payment will increase by 36%.

This option may be beneficial for those who have a higher income at age 65 and want to receive a larger pension after retirement.

OAS clawback: Recovery tax for high-income seniors

If a senior’s income exceeds a set limit, his or her OAS amount may be reduced.

Benefit Type	Age Group	Maximum Monthly Payment	Maximum Annual Income (Individual)
OAS	65 to 74 years	$727.67	$148,451
OAS	75 years and over	$800.44	$154,196
GIS	Single	$1,086.88	$22,056
GIS	Married (both OAS)	$654.23 each	$29,136 (combined)

OAS clawback limits (2023-24):

If a person’s annual income exceeds $86,912, every additional dollar will be taxed at 15%.

Example:

If a senior’s income is $90,000, his or her OAS amount will be reduced as follows:

• ($90,000 – $86,912) × 15% = $463.20

This means that OAS payments will be reduced by $463.20 annually.

How to apply for an OAS pension?

• Many seniors are automatically enrolled in OAS. Service Canada usually sends a letter after you turn 64, confirming OAS eligibility.
• If you haven’t received this letter, you’ll need to apply in person.

How to apply:

• Online application: You can apply online through My Service Canada Account.
• Paper application: You can fill out Form ISP-3550 and submit it to a Service Canada office.

Tip:

Apply early to get an OAS pension on time.

How is OAS pension taxed?

An OAS pension is considered taxable income, so it must be included on your annual tax return.

Strategies to save taxes:

• Income Splitting: You can split your retirement income with your spouse to reduce your tax liability.
• Tax-Free Savings Account (TFSA): Investing in a TFSA will keep the interest tax-free and reduce your overall tax liability.

Conclusion: Why is the OAS pension important for 2025?

• The $1,280 OAS pension payment in March 2025 will be an important source of financial support for seniors.
• Seniors can make the most of their benefits by understanding the eligibility criteria, payment dates, and tax policies.
• OAS payments can be deferred to increase them, and higher OAS payments can be deferred to increase them.

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