The Canadian government will increase the Old Age Pension (OAS) starting next week, a move the feds say will be the first permanent pension increase in almost 50 years.
The initiative would result in a permanent 10 percent increase in OAS for seniors 75 and older.
A statement released by the federal government on Thursday said that, apart from adjustments for inflation, it would be the first permanent pension increase since 1973.
The federal Liberals mentioned the 10 percent OAS increase in their platform and later included the measure in the 2021 budget.
Full retirees can expect to receive more than $800 in extra funds in the first year, the statement said, with 3.3 million seniors benefiting.
“The permanent increase in the OAS pension will help provide older people with greater financial security now and in the future,” said Senior Citizens Minister Kamal Khera.
“Younger seniors – and all Canadians – can enjoy greater peace of mind as they plan their retirement finances, knowing they’ll be able to count on more support from the OAS pension in their later years.”
The OAS pension is paid monthly to seniors 65 and older in Canada.
The federal government offered a one-time payment of $500 in August 2021 to OAS-eligible seniors. This was also part of last year’s budget.
The planned increase comes after Canada’s inflation rate rose 8.1 percent in June from a year earlier, making it the largest annual increase since January 1983.
With files from The Canadian Press
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