OAS rose 1.2% for July–September 2026 — here's what it means
Old Age Security is indexed to inflation and reviewed every quarter — January, April, July, and October. For the July to September 2026 quarter, OAS rose about 1.2%. Small in percentage terms, but it's permanent, it compounds with every future adjustment, and the same review moved GIS and the Allowances too. Here's the full picture.
The new maximum monthly amounts
- Ages 65–74: $751.97/month ($9,023.64/year)
- Ages 75 and over: $827.17/month ($9,926.04/year — OAS is 10% higher from 75)
- GIS, single: up to $1,123.17/month, non-taxable
- GIS, couple (both receiving OAS): up to $676.09/month each
These are maximums for someone with 40 years of Canadian residency after age 18. Fewer years means a prorated pension — 25 years pays 25/40ths of the maximum — with a 10-year minimum to receive OAS while living in Canada. If you deferred OAS past 65, your +0.6%-per-month deferral bonus applies on top of the new base.
How the quarterly indexing actually works
OAS is adjusted using the average Consumer Price Index over the most recent three-month period, compared against the last period that triggered an increase. Two properties are worth knowing:
It never goes down. If prices fall, OAS holds flat until the CPI recovers — the law only allows increases. Your payment can stall, but it can't be cut by deflation.
It compounds quietly. A 1.2% quarter looks trivial, but indexing is the feature that makes OAS genuinely valuable: it's one of the only income sources most retirees have that is fully inflation-protected for life, with no market risk. Over a 30-year retirement at 2% inflation, an unindexed $752 would lose about 45% of its buying power; OAS doesn't.
What the increase is worth in dollars
On the 65–74 maximum, roughly $9 more per month, about $108 a year. On the 75+ rate, closer to $10/month. GIS recipients see their supplement adjust on the same schedule — and because GIS is non-taxable, a GIS dollar is worth more than an OAS dollar after tax.
The honest framing: no single quarter matters much. The mechanism matters enormously. When you model retirement income, the right way to treat OAS (and CPP, and GIS) is as constant in today's dollars — which is exactly how our calculators handle it.
Who needs to pay attention
Nobody needs to apply or do anything — adjustments are automatic, and most 65-year-olds are auto-enrolled for OAS itself (Service Canada writes to you; apply manually if that letter never came).
Higher-income retirees should note that a bigger OAS means slightly more benefit exposed to the recovery tax. For the 2026 tax year the clawback starts at $95,323 of individual net income, taking 15 cents per dollar above the line until OAS is exhausted (around $155,500 for ages 65–74). If you're anywhere near the line, the levers that matter are account order (TFSA withdrawals don't count; RRIF withdrawals do), pension income splitting for couples, and the dividend gross-up trap — all covered in our clawback guide.
GIS-range seniors should know the flip side: GIS phases out at 50 cents per dollar of other income (25 cents each, on combined income, for couples). Timing RRSP withdrawals before GIS eligibility begins at 65 is often the single most valuable move available — worth far more than the quarterly bump this post is about.
The bigger picture for your plan
A quarter's OAS news is a good prompt for a five-minute check-up:
- Confirm your own numbers. Your OAS (with residency proration and any deferral) and your CPP estimate are both in My Service Canada Account.
- Model the interaction, not the headline. OAS, GIS, the clawback, and your withdrawals move together. The free CPP/OAS estimator shows your benefit math with the derivation visible, and the Plan Builder runs the whole household — splitting, GIS testing, and clawback included — year by year to your plan age.
- If you're 64 and low-income, get advice before starting withdrawals. The GIS interaction is unforgiving and mostly irreversible.
Not financial advice. OAS and GIS amounts change quarterly — always confirm the current figure with Service Canada before deciding.