Federal Government Announces Date For $500 Payout To Older Seniors

It is something seniors in Moose Jaw have been speaking about and anticipating a one-time $500 payment to older seniors sometime in 2021. Well the suspense is over as the federal government has announced the week when the cheques will be issued.

On Wednesday (July 7th) the federal government announced the date of a one-time $500 payment to older seniors as well as in July 2022 a ten (10) percent increase to OAS for those 75 years of age and older.

The date for the $500 one-time payment for older seniors (born on or before June 30, 1947) will be issued during the week of August 16th, 2021. The $500 one-time payment will be issued to an estimated 3.3 million eligible older seniors.

It has been a sore spot for some younger Moose Jaw seniors who are not old enough to qualify for the one-time payout.

The federal government has justified the payout to older seniors as recognition and to help pay for their higher financial needs.

“The Government is continuing to improve the financial security of Canadians in retirement after a lifetime of hard work. Increasing Old Age Security for older seniors helps all Canadians with their extra needs later in life. While no single solution can meet every need, step by step our progressive measures are making a real difference in the lives of seniors. Canadian seniors can always count on us to listen, understand their needs and work hard to deliver for them,” Deb Schulte Minister of Seniors said in a statement.

The payment is arriving just ahead of what many political pundits are saying could be a Fall federal election.

No action needs to be taken by older seniors as the funds will be issued automatically to those who qualify.

The ten percent increase for older seniors in July 2022 will be the first increase to OAS since 1973 other than annual adjustments for inflation.

In July 2021, OAS benefits will automatically increase 1.3%, bringing the maximum monthly OAS pension amount to $626.49, up from $618.45. Over the coming year, the increase is worth up to $96.48 as an adjustment for inflation. All seniors eligible for OAS will receive this increase.

The objective of the Old Age Security program is to ensure a minimum income for seniors and help reduce the incidence of low income among Canada’s seniors.

The OAS benefits include: the OAS pension; which is paid to all individuals aged 65 and older who meet the residence requirements; the GIS for low-income seniors; and the Allowances for low-income Canadians aged 60 to 64 who are the spouses or common-law partners of GIS recipients, or who are widowed or widowers.