After years of small increases that barely kept up with rising costs of housing, groceries, utilities, and medical care, 2026 looks like it will bring big changes. Starting in February 2026, seniors are expected to get bigger Old Age Security adjustments. This could be the end of what many people have called “low OAS payments.”
Payment is on the way, and for seniors who qualify, that increase could give them some much-needed breathing room in their finances.
This in-depth guide goes over what will change in February 2026, who will be eligible, how much payments may go up, how to be eligible, and what seniors should do now to make sure they get the full benefit.
What is Old Age Security and why is it important?
One of Canada’s main retirement income programs is Old Age Security, or OAS. OAS is not based on contributions from people who work, unlike the Canada Pension Plan. Instead, it is paid for by general tax revenue and given to seniors who meet certain age and residency requirements.
OAS is meant to give retirees a basic income floor. For a lot of seniors with low or moderate incomes, it helps pay for basic living costs along with the Guaranteed Income Supplement and the Canada Pension Plan.
When OAS goes up, it has a direct effect on monthly budgets. Even a small change can have a big effect over the course of a year.
Why February 2026 is Important
Every three months, OAS payments are changed to keep up with inflation. But policymakers have been getting more and more criticism for not doing enough to keep up with real-world cost increases, especially in housing and healthcare.
Starting in February 2026, better adjustments are expected to show stronger indexing measures and better calculation formulas. The goal is to keep seniors from falling behind when the cost of living stays high for a long time.
The final numbers will depend on inflation data and how well the federal budget is carried out. However, the February 2026 increase is expected to be bigger than the usual quarterly changes seen in the past.
Expected OAS Payment Hikes in 2026
Even though official numbers aren’t released until closer to implementation, projections suggest:
- People aged 65 to 74 who get standard OAS may see a big increase in their monthly payments.
- Older adults aged 75 and up, who already get a higher base amount, may see a bigger boost in proportion to that amount.
- If the thresholds are changed, low-income seniors who get the Guaranteed Income Supplement might indirectly benefit.
Even a rise of $40 to $80 a month means hundreds of dollars more each year. This can help families who rely on OAS a lot pay for higher rent, groceries, or prescription drugs.
The rise is expected to happen on its own. People who are already getting OAS don’t need to fill out a separate application.
Who Can Get the OAS Boost in February 2026
The rules for who can get OAS money are still the same, but it’s important to know them well.
Age Requirement
To be eligible for OAS, you must be at least 65 years old. Payments usually start the month after your 65th birthday, but you can choose to wait.
Requirement for residency
You must have lived in Canada for at least 40 years after turning 18 to get a full OAS pension. You might be able to get a partial pension if you’ve lived in Canada for at least 10 years but less than 40.
Status in the Law
You have to be a Canadian citizen or legal resident when your application is approved. Some people who live abroad may still be eligible if they meet the minimum residency requirements.
Things to think about when it comes to money
The OAS recovery tax, which is also called the clawback, may apply to seniors with high incomes. If your yearly income is higher than the set limit, your OAS may be cut by some or all of it.
But the full increase in February 2026 should apply to most seniors with low or middle incomes.
How Much Could Seniors Get
OAS amounts are split up by age group:
- Seniors between the ages of 65 and 74 get a set amount of money each month.
- Seniors 75 and older get a higher base amount that was added in the last few years.
If the expected boost in February 2026 happens, the projected monthly totals could go up a lot compared to 2025 levels.
For instance, if inflation indexing leads to a 4% rise and other changes are made on top of that, seniors could see their payments go up much more than they did before.
Payment is coming, and for a lot of seniors, that means a bigger deposit starting in February.
The Guaranteed Income Supplement and What It Does
Low-income OAS recipients can get extra money every month from the Guaranteed Income Supplement. Your tax return is used to determine your GIS income level and recalculate it every year.
If OAS goes up in February 2026, the GIS thresholds may also change. That could help make sure that seniors with the least amount of money don’t lose support because of small changes in their income.
If you are a senior who qualifies for both OAS and GIS, the total amount you get each month could go up a lot in 2026.
Will seniors have to apply again?
Most seniors won’t have to apply again.
If you already get OAS, your monthly payment will go up automatically starting in February 2026.
If you just turned 65 and haven’t applied yet, or if you delayed your OAS and plan to start getting it soon, you should make sure your application is processed on time so you can get the higher rate.
OAS Deferral Plan for 2026
Some seniors decide to wait until after age 65 to get OAS. Your payment goes up by 0.6 percent for every month you wait, up to a maximum of 36 percent when you turn 70.
Taking into account the boost in February 2026, some retirees who have other sources of income and want to get the most out of their lifetime benefits may find deferring even more appealing.
But not everyone should put off their plans. If you don’t have a lot of savings, it might be better for you to start OAS at 65 and get the higher amount right away.
The OAS Clawback Threshold for 2026
Sometimes, higher payments can bring seniors closer to the threshold for income recovery.
The OAS recovery tax only applies if your yearly income is above a certain level. If your income goes over that limit, your OAS will slowly go down.
Seniors who get investment income, rental income, or work part-time should keep an eye on their taxable income so they don’t get unexpected cuts.
Most low- and moderate-income seniors will not have to pay back the clawback.
How Inflation Affects OAS
The Consumer Price Index is used to adjust OAS every three months. Payments go up when inflation goes up. Payments don’t go down if inflation goes down.
The rise in February 2026 is due to inflation that has built up and possible changes to policy. Many seniors think that indexing alone isn’t enough because the cost of living is still higher than it was before 2022.
The goal of this new adjustment cycle is to make OAS payments more in line with real-world cost pressures.
What Seniors Should Do Right Now
To make sure you get the February 2026 rise on time, think about doing the following:
Pay Your Taxes On Time
Even if you don’t make much money, filing your annual tax return makes sure that your benefits are calculated correctly.
Check the details for direct deposit
Check that your banking information is correct to avoid delays in payment.
Look over your residency history
If you lived outside of Canada for a long time, check how many qualifying years you have to see if you get full or partial OAS.
Keep an eye on your income levels.
If you’re close to the clawback threshold, talk to a financial advisor about how to manage your taxable income.
A wider effect on the financial stability of seniors
The OAS boost in February 2026 is more than just a monthly increase. It shows that people understand that seniors need more financial help because housing costs, food prices, and healthcare costs are all going up.
For retirees who don’t have pensions from their jobs, OAS is often a big part of their income. An increased payment gives you stability and predictability, which are important for making a budget.
Payment is coming, and for a lot of seniors, that means more financial security in 2026.
