Introduction
October 1, 2026 brought some genuinely good news for Canadian seniors: Old Age Security (OAS) benefits are going up. The Government of Canada has increased OAS by 1.4% for the October–December 2026 quarter, the latest in a series of quarterly adjustments tied to inflation. If you’re 65 or older and receiving OAS, a little extra is landing in your account this month — and this year has brought a bigger increase than most people realize.
Table of Contents
- – How Much Extra Are You Actually Getting?
- – Why OAS Increases Every Quarter
- – The October 28 Payment Date and What to Check
- – 4 Smart Moves to Make With the Increase
How Much Extra Are You Actually Getting?
The official increase for the October–December 2026 quarter is 1.4%. That may sound small, but it stacks up: OAS benefits are up 3.0% over the year from October 2025 to October 2026. On a payment of roughly $740 a month, that means about $10 more per month this quarter, or around $22 more per month than you were receiving this time last year — roughly $265 extra per year, straight into your pocket, tax-free adjustments aside. It’s not life-changing money, but for a retiree budgeting down to the dollar, every extra dollar matters. And unlike a one-time bonus, this increase is baked into every future payment.
Why OAS Increases Every Quarter
OAS is one of the few income sources in Canada that automatically fights inflation. The benefit amounts are reviewed every January, April, July, and October based on changes in the Consumer Price Index (CPI). When the cost of living rises, OAS rises with it. When inflation is flat or negative, payments stay the same — OAS never decreases. That automatic adjustment is worth appreciating: most workplace pensions and rental income streams have no such guarantee, which is exactly why many retirees slowly lose purchasing power over decades while OAS holders keep pace.
The October 28 Payment Date and What to Check
The Government of Canada’s payment calendar lists October 28, 2026 as the payment date for CPP and OAS. If you receive both, both land that day. Before the payment hits, take five minutes to check these things in your My Service Canada Account: confirm your direct deposit details are current, verify your mailing address is correct, and check that your income information is up to date — because your income determines whether you receive the Guaranteed Income Supplement (GIS) on top of OAS, and whether the OAS recovery tax (the “clawback”) applies to you. High-income seniors see OAS reduced once net income crosses the recovery threshold, so knowing where you stand matters for year-end tax planning too.
4 Smart Moves to Make With the Increase
- 1. Don’t let it vanish into daily spending. An extra $10–$22 a month is invisible inside your regular account. Move it — deliberately — to a purpose: an emergency buffer, a prescription fund, or a small TFSA contribution.
- 2. Check your GIS eligibility. If your income dropped recently (a spouse passed away, work income ended), you may now qualify for the Guaranteed Income Supplement, which pays on top of OAS. Apply through Service Canada — it’s not automatic.
- 3. Watch the clawback threshold. If you’re still working or have investment income pushing you near the OAS recovery threshold, consider whether RRSP withdrawals or capital gains timing could tip you over. A conversation with a tax advisor before year-end can save real money.
- 4. Update your budget once, properly. Recalculate your monthly income with the new OAS amount, your CPP, and any GIS or private pension. Retirees who re-budget twice a year — January and October, when OAS adjusts — almost always feel more in control than those who never look.
Conclusion
Nobody’s getting rich off a 1.4% increase — but that’s the wrong way to look at it. OAS is doing exactly what it was designed to do: quietly protecting your purchasing power while everything around you gets more expensive. The 3% raise over the past year covered roughly the inflation you actually felt. Take the win, verify your details in My Service Canada Account before the October 28 payment, and point that extra money somewhere on purpose.