Good afternoon! Today's stories share one thread: the government money you count on and the money you actually need don't always line up. A bigger OAS cheque, a grocery benefit and a savings target all look reassuring on paper. How far each one goes depends on your income, your paperwork and the life you want to afford.
On The Money Today:
Why a bigger benefit cheque doesn't always mean more money in your pocket
The filing gap that could leave you out of a payment you're counting on
What it takes to fill the space that government benefits leave behind
Let's dive in.
RETIREMENT
OAS rises 1.4% on October 28, but tax and clawback decide how much of the raise you actually keep
The maximum OAS pension climbs to about $762.50 a month for seniors aged 65 to 74 and about $838.75 for those 75 and older. It's the largest of this year's four quarterly adjustments. The single GIS maximum rises to about $1,138.89.
What lands in your account depends on which benefit you get. OAS is taxable while GIS isn't. The clawback threshold stays fixed at $93,454, so if your income already sits near that line, part of your raise is withheld before you see it. Find out what the increase is worth to your budget and what to check before the October 28 deposit.
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NEWS
The next Canada Groceries and Essentials Benefit payment lands October 5. Here's why some Canadians won't get one
The CGEB replaced the GST/HST credit this year. It pays up to $169.75 for singles and $222.50 for couples, plus $58.50 for each eligible child under 19.
There's no application, but you have to have filed your 2025 tax return and fall under the CRA's income limit. If you filed late and missed the July payment, the missed amount gets added to this one. A quick check of your CRA account tells you whether a deposit is coming your way.
MUST READ
How much do you need saved to retire comfortably once CPP and OAS stop covering the basics?
There's no single number that works for everyone. Advisors say most Canadians set their target without fully pricing in healthcare costs, inflation and a retirement that could stretch 25 years or longer.
CPP and OAS cover part of the picture, but your income, your lifestyle and where you plan to live decide how big the gap is. Work out a target that fits your life instead of relying on a rule of thumb.
MONEY IQ
Many Canadians use a TFSA to fill the retirement gap that CPP and OAS leave behind. In what year did Canadians first get to open a TFSA?
ALSO MAKING THE ROUNDS TODAY
NEWS: Lost money to a scammer who demanded Apple gift cards? A proposed $1.25M settlement could pay back Canadians scammed since 2016
REAL ESTATE: A BC landlord faced $17,600 in penalties for cutting a tenant's power. Here's what renters in every province can claim
NEWS: A viral Reddit post exposed a Keanu Reeves romance scam. Here's how to spot a celebrity impersonator and protect an aging parent
REAL ESTATE: Own a Florida condo? Canadian snowbirds could face six-figure assessments before a December 31 reserve deadline
MONEY IQ: HOW'D YOU DO?
Answer: C) 2009. TFSAs became available on January 1, 2009, with an annual contribution limit of $5,000. Because unused room carries forward, anyone who has been eligible since the start and never contributed has built up a significant amount of tax-free room to catch up on.
That's a wrap for today! Before you go, we'd love to know what you thought of today's newsletter. Hit REPLY if you have more to share — we read every reply.
