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Increased old-age insurance for those aged 75 and over

Increased old-age insurance for those aged 75 and over

Seniors aged 75 or over who receive Old Age Insurance (OAS) will see a permanent 10% increase in their monthly checks starting July 27.

This permanent increase in the OAS is the first since 1973 that is not linked to inflation. That could mean an additional $800 over the course of a year for seniors age 75 and older receiving the full benefit, which now comes to $733.51 a month.

According to the federal government, which announced the measure in its 2021 budget, the increase should benefit about 3.3 million people across Canada.

It should also be noted that old-age insurance is linked to inflation and that it increases every three months. Thus, the amount sent during July should have increased by 2.8% compared to that received during the previous months.

automated process

Seniors who are already receiving OAS do not have to do anything to receive the new amounts because the process is automated.

Last summer, a month before the election, the federal government gave a $500 check to pension-eligible seniors to help them deal with affordability issues related to the pandemic.

The current situation of children aged 65-74 years

Regardless of the increase associated with the inflation index, the full OAS for ages 65 to 74 remains unchanged at $666.83 per month.

The Quebecwa bloc has called for an increase in OAS for all older people over 65 over the past year, even talking about “discrimination” against those aged 65 to 74.

Statistics Canada reported an inflation rate of 8.1% on Wednesday, the highest number since 1983. This significant increase in the cost of living is largely offset by higher gasoline prices.

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Employment and Social Development Canada said in a statement: “In 2018, 59% of OAS retirees aged 75 or over had incomes of less than $30,000, compared to 52% of retirees aged 65 and over. and 74 years old.