Canada’s Old Age Security (OAS) Pension is a critical financial support for aged citizens, determined by factors such as income, age, and residency status. The Canada Revenue Agency (CRA) revises OAS payment amounts quarterly—in January, April, July, and October—based on the Consumer Price Index (CPI), which reflects changes in the cost of living due to inflation. The most recent revision in July 2024 saw an increase in OAS payments, impacting not only the base pension but also other related benefits like the Guaranteed Income Supplement (GIS), Allowance, and Allowance for Survivors.
Canada OAS Increase 2024
The CRA adjusts the OAS payments to match the changes in the CPI, a measure of inflation and deflation affecting the cost of living. Typically, OAS payments rise when the cost of living increases, but they do not decrease when the cost of living falls. The adjustments in July 2024 were based on the most recent CPI figures, resulting in a 0.7% increase in OAS payments.
OAS Payment Amounts and Income Limits
In July 2024, the maximum monthly OAS amounts and income limits were updated. The new figures for July to September 2024, compared to the previous quarter, are as follows:
April-June 2024
| Age | Annual Net Income (2022) | Maximum Monthly OAS |
|---|---|---|
| 65-74 Years | $134,626 | $713.34 |
| 75 Years and above | $137,331 | $784.67 |
July-September 2024
| Age | Annual Net Income (2023) | Maximum Monthly OAS |
|---|---|---|
| 65-74 Years | $142,609 | $718.33 |
| 75 Years and above | $148,179 | $790.16 |
OAS Payment and Income Limit Increase
| Age | Annual Net Income Increase | Maximum Monthly OAS Increase |
|---|---|---|
| 65-74 Years | $7,983 | $4.99 |
| 75 Years and above | $10,848 | $5.49 |
Other OAS Benefits Increase July 2024
Additional OAS benefits were also revised in July 2024:
Guaranteed Income Supplement (GIS)
| Status | Income Limit | Maximum Monthly Amount |
|---|---|---|
| Single, Widow, Divorced | Below $21,768 | $1072.93 |
| Spouse with Full OAS Pension | Below $28,752 | $645.84 |
| Spouse with Allowance recipient | Below $40,272 | $645.84 |
| Spouse without OAS and Allowance | Below $52,176 | $1072.93 |
Allowance
| Status | Income Limit (You + Your Spouse) | Maximum Monthly Amount |
|---|---|---|
| Couple with Full OAS and GIS | Below $40,272 | $1364.17 |
Allowance for Survivors
| Status | Income Limit | Maximum Monthly Amount |
|---|---|---|
| Surviving Spouse | Below $29,328 | $1626.20 |
Computation of July-September OAS Amount 2024
To determine the new OAS amount, the CRA uses the average CPI of the recent three months and compares it to the average CPI of the three months when the last OAS increase occurred.
CPI Data
| Recent Months | CPI |
|---|---|
| February 2024 | 158.8 |
| March 2024 | 159.8 |
| April 2024 | 160.6 |
| Average CPI | 159.7 |
| Previous Increase Months | CPI |
|---|---|
| August 2023 | 158.7 |
| September 2023 | 158.5 |
| October 2023 | 158.6 |
| Average CPI | 158.6 |
Calculation
- Difference in CPI: 159.7 – 158.6 = 1.1
- Percentage Increase: (1.1 / 158.6) * 100 = 0.6935% ≈ 0.7%
This calculation confirms the 0.7% increase in the OAS payments for July 2024.
FAQs:
What factors determine the OAS pension amount?
The OAS pension amount is determined by income, age, and residency status.
How often are OAS payments revised?
OAS payments are revised quarterly, in January, April, July, and October.
What is the Consumer Price Index (CPI)?
The CPI measures changes in the cost of living, reflecting inflation or deflation.