March COLA Increase The stack of bills on Margaret Wilson’s kitchen table in Winnipeg seems to grow taller each month. At 68, the retired school administrator has watched her grocery costs climb steadily over the past two years, while her heating bills this winter have reached levels she’s never seen in her four decades in the same modest bungalow.
Also Read:- Big News Australia Pension Scheme Change in April 2025 & Check Eligibility Now
“You become a bit of a mathematician in retirement,” she tells me with a wry smile as she sorts through her monthly expenses. “Except the numbers keep changing, and rarely in your favour.”
For Wilson and thousands of other Canadian benefit recipients, March will bring some welcome relief as various government programs implement their scheduled cost-of-living adjustments (COLAs). These increases, designed to help benefits keep pace with inflation, come at a critical time for many seniors and other benefit recipients struggling with Canada’s persistent inflation and high cost of living.
“Even a modest increase makes a difference when you’re counting every dollar,” Wilson says. “When you’re on a fixed income, there’s no asking for a raise or picking up extra shifts. The COLA is the only raise we get.”
As March approaches, understanding which benefits are increasing, by how much, and who qualifies has become essential knowledge for millions of Canadians dependent on these programs. Let’s examine the upcoming changes and what they mean for recipients across the country.
Understanding COLA: Why These Adjustments Matter
Cost-of-living adjustments are not a bonus or a gift from the government—they represent an essential mechanism to prevent benefits from being eroded by inflation. Without regular COLAs, the real purchasing power of fixed benefits would steadily decline, potentially pushing vulnerable populations into financial hardship.
“The fundamental purpose of indexing benefits to inflation is to maintain their purchasing power over time,” explains Dr. Thomas Chen, an economics professor at the University of British Columbia who specializes in retirement security. “Without these adjustments, a benefit that seems adequate today could become insufficient within just a few years.”
Canada uses the Consumer Price Index (CPI) as the benchmark for most of its COLA calculations. This index tracks the average change in prices paid by consumers for a basket of goods and services, providing a standardized measure of inflation. When the CPI rises, benefits indexed to it increase proportionally.
“It’s important to understand that COLAs aren’t designed to improve living standards—they’re intended to prevent decline,” Chen adds. “They’re a preservation mechanism, not an enhancement.”
For the upcoming March adjustments, most increases reflect the average inflation rate over the previous year, which has finally begun to moderate after reaching multi-decade highs in 2022 and early 2023.
The Psychology of Fixed Incomes in Inflationary Times
Beyond the pure economics, there’s a psychological dimension to COLAs that’s often overlooked in policy discussions. For those living on fixed incomes, watching prices rise faster than their income creates not just financial stress but also significant anxiety about the future.
“When you’re younger and working, inflation is challenging but there’s often a path forward—changing jobs, asking for raises, working more hours,” notes Dr. Sarah Williams, a gerontologist at Ryerson University who studies financial wellbeing among seniors. “In retirement, those options largely disappear. That creates a unique type of stress we call ‘fixed-income anxiety.'”
This anxiety isn’t just unpleasant—it can lead to problematic behaviors like medication rationing, inadequate nutrition, or dangerous home temperature settings as seniors try to control costs. The anticipation of COLA increases often provides not just financial relief but also psychological reassurance.
“We see measurable improvements in mental health indicators among seniors in the months following COLA announcements,” Williams says. “There’s a sense of having some protection against an uncertain economic environment.”
Old Age Security and Guaranteed Income Supplement: March Increases
For Canada’s seniors, Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) represent critical pillars of retirement income security. Both programs will see adjustments in March based on recent inflation figures.
Old Age Security, which provides a basic income to seniors 65 and older who meet residency requirements, will increase by 0.9% for the January-March quarter. While this may seem modest, it reflects the recent moderation in inflation compared to earlier periods. For those receiving the maximum basic OAS pension, this translates to an increase of approximately $6.75 per month, bringing the maximum monthly payment to about $757.
“Every bit helps,” says Robert Adamson, 72, a retired factory worker from Hamilton, Ontario. “Six dollars might not sound like much, but that’s a prescription co-pay or a couple of bus tickets. For some of us, that makes a real difference.”
The Guaranteed Income Supplement, which provides additional money to OAS recipients with low incomes, will see a similar percentage increase. For single seniors receiving the maximum GIS, this means an additional $9.45 monthly, bringing their payment to approximately $1,060 per month.
“The GIS increase is particularly significant because it targets the most financially vulnerable seniors,” notes Chen. “Recipients of maximum GIS are typically living very close to or below poverty thresholds, so even small dollar increases have meaningful impact on their daily lives.”
Who Qualifies and How Payments Work
Eligibility for OAS and GIS hasn’t changed with the COLA adjustments. OAS eligibility still requires:
Being 65 years of age or older
Canadian citizenship or legal residency status
Having resided in Canada for at least 10 years after turning 18
For GIS, recipients must:
Be receiving OAS
Have an annual income below the threshold (currently $20,832 for single seniors)
File their income tax returns annually to maintain eligibility
The payment schedule remains unchanged, with deposits typically arriving during the last week of each month. The March adjustments will be reflected in the payment received in late March.
“One challenge we often see is that some eligible seniors aren’t receiving GIS simply because they haven’t applied or haven’t filed their taxes,” says Marie Lapointe, a financial counselor with Seniors First, a non-profit organization that helps older Canadians navigate benefit systems. “I encourage all low-income seniors to ensure they’ve applied for all benefits they’re entitled to, especially with these increases coming.”
Canada Pension Plan: Understanding the Annual Adjustment
Unlike OAS and GIS, which see quarterly adjustments, the Canada Pension Plan (CPP) increases once annually, with changes taking effect in January. However, many recipients report that understanding how these adjustments affect their particular situation can be confusing.
The January 2024 adjustment increased CPP payments by 2.7%, reflecting the year-over-year change in the Consumer Price Index. For someone receiving the maximum CPP retirement benefit, this meant an increase from $1,306.57 to $1,341.85 monthly—an additional $35.28 per month or $423.36 annually.
However, it’s important to note that most Canadians don’t receive the maximum CPP benefit. The average new CPP retirement pension (at age 65) is approximately $770 per month after the adjustment.
“The CPP increase is often misunderstood because people hear about the percentage increase and apply it to their own benefit, which is correct, but then they hear about the maximum benefit and assume that’s what everyone gets,” explains Lapointe. “In reality, your CPP benefit depends on how much and how long you contributed to the program during your working years.”
CPP Disability and Survivor Benefits
The COLA adjustments also apply to CPP disability benefits and survivor benefits. The maximum CPP disability benefit increased to $1,578.49 monthly after the January adjustment, while the death benefit remained fixed at $2,500 (as this particular benefit is not indexed to inflation).
“The disability benefit adjustment is particularly important because recipients often face additional costs related to their disabilities that may also be rising with inflation,” notes Dr. Williams. “Things like specialized transportation, home care services, or medical supplies not covered by provincial health plans can all increase in price.”
For Diane Leblanc, 54, who receives CPP disability benefits after a workplace injury ended her career as a personal support worker, the annual increase provides some breathing room in a tight budget.
“When you’re on disability, your income is already significantly lower than when you were working,” Leblanc explains from her apartment in Moncton, New Brunswick. “The annual increase doesn’t make you whole again, but it helps you keep your head above water as costs rise.”
Provincial Programs and Supplements
While federal programs like OAS, GIS, and CPP receive the most attention, many provincial benefit programs also feature cost-of-living adjustments that will take effect in March. These programs vary significantly by province but often provide crucial additional support for low-income seniors and other vulnerable populations.
In British Columbia, the Senior’s Supplement—which provides additional monthly payments to low-income seniors receiving federal OAS and GIS—will see a modest increase. Similarly, Alberta’s Seniors Benefit, Ontario’s Guaranteed Annual Income System (GAINS), and Quebec’s Supplement to the Guaranteed Income programs will all implement inflation-based adjustments.
“Provincial supplements often don’t get the same attention as federal programs, but for many low-income seniors, these additional benefits can make a substantial difference,” says Chen. “They’re designed to reflect the specific cost challenges in different provinces.”
Recipients of provincial benefits should check with their specific provincial ministry responsible for seniors or social benefits to confirm exact adjustment amounts, as these vary by program and jurisdiction.
The Impact of Regional Cost Variations
One challenge with nationwide programs is that they can’t easily account for regional cost variations. A senior living in Vancouver or Toronto faces significantly different housing costs than someone in a smaller community in Saskatchewan or New Brunswick.
“The standard COLA approach treats all recipients equally in percentage terms, but doesn’t account for the fact that the same basket of goods might cost 30% more in one community versus another,” notes Chen. “This is where provincial supplements become particularly important—they can help address these regional disparities.”
For Margaret Wilson in Winnipeg, this reality is evident when she speaks with her sister in Vancouver, who also relies on government benefits.
“We both get the same percentage increases, but her rent takes up nearly 70% of her income, while mine is about 40%,” Wilson explains. “The same dollar amount goes much further depending on where you live.”
Maximizing Your Benefits: What Recipients Should Know
As these COLA increases approach, benefit recipients should take several steps to ensure they’re receiving everything they’re entitled to:
Ensure your information is current: Make sure Service Canada has your correct address and direct deposit information to prevent payment disruptions.
File your taxes annually: Even if you have little or no taxable income, filing your taxes is essential for maintaining benefit eligibility, particularly for GIS.
Check for provincial programs: Many provincial benefit programs require separate applications and aren’t automatically provided even if you qualify.
Review your benefit statements: When you receive notification of COLA increases, verify that the adjustments have been correctly applied to your payments.
“The system puts a lot of responsibility on the individual to ensure they’re receiving all eligible benefits,” notes Lapointe. “Unfortunately, the most vulnerable—those with cognitive impairments, language barriers, or limited financial literacy—are often the most likely to miss out on benefits they’re entitled to.”
Resources for Assistance
For those needing help navigating the system, several resources are available:
Service Canada offices provide in-person assistance with federal benefits
Provincial seniors’ ministries can help with regional programs
Non-profit seniors’ organizations often offer benefit navigation services
Financial counselors specializing in seniors’ issues can provide personalized guidance
“Don’t be afraid to ask for help,” advises Lapointe. “These benefits exist because you’ve earned them through your contributions to Canada throughout your working life. Making sure you receive everything you’re entitled to isn’t being greedy—it’s being prudent.”
The Future of Benefit Indexing
As Canada’s population ages and inflation remains a concern, discussions about the adequacy of current indexing mechanisms have intensified. Some advocacy groups argue that the standard CPI doesn’t accurately reflect the spending patterns of seniors, who typically spend more on healthcare and housing—categories that often see higher-than-average inflation.
“There’s growing interest in the concept of a ‘seniors’ price index’ that would more accurately track the actual expenses faced by older Canadians,” explains Chen. “This could potentially lead to more appropriate COLA adjustments for programs specifically targeting seniors.”
For now, however, recipients will continue to receive adjustments based on the standard CPI, with the March increases providing some welcome, if modest, relief from ongoing inflationary pressures.
As Margaret Wilson finishes sorting her bills, she places them in a neat stack with a renewed sense of organization, if not abundance. “You learn to be grateful for what you have,” she reflects. “And to watch the calendar for those months when the adjustments come through.”
For thousands of Canadians like Wilson, March will bring a small but meaningful step toward maintaining financial dignity in the face of rising costs—a reminder that while inflation may be an economic statistic to some, it’s a daily reality for those whose financial security depends on benefits keeping pace with the cost of living.
Frequently Asked Questions (FAQs)
What is a COLA increase?
A Cost-of-Living Adjustment (COLA) is an increase in benefit payments designed to help them keep pace with inflation. These adjustments ensure that the purchasing power of benefits isn’t eroded over time as prices rise.
Which benefits are receiving COLA increases in March?
Old Age Security (OAS) and Guaranteed Income Supplement (GIS) will see adjustments in March. The Canada Pension Plan (CPP) already received its annual adjustment in January 2024.
How much will the OAS increase be?
OAS will increase by 0.9% for the January-March quarter. For those receiving the maximum basic OAS pension, this translates to approximately $6.75 per month, bringing the maximum monthly payment to about $757.
How much will the GIS increase be?
The GIS will see a similar percentage increase of 0.9%. For single seniors receiving the maximum GIS, this means an additional $9.45 monthly, bringing their payment to approximately $1,060 per month.
Who qualifies for OAS and GIS?
OAS eligibility requires being 65 years or older, having Canadian citizenship or legal residency status, and having resided in Canada for at least 10 years after turning 18. For GIS, recipients must be receiving OAS, have an annual income below the threshold (currently $20,832 for single seniors), and file their income tax returns annually.
Do provincial benefits also have COLA increases?
Yes, many provincial benefit programs also feature cost-of-living adjustments. These include BC’s Senior’s Supplement, Alberta’s Seniors Benefit, Ontario’s Guaranteed Annual Income System (GAINS), and Quebec’s Supplement to the Guaranteed Income programs. The exact adjustment amounts vary by program and jurisdiction.
What should I do to ensure I receive my COLA increases?
Ensure Service Canada has your current address and direct deposit information, file your taxes annually (even with little or no taxable income), check for provincial programs you might qualify for, and review your benefit statements to verify adjustments have been correctly applied.
Where can I get help understanding my benefits?
Assistance is available through Service Canada offices, provincial seniors’ ministries, non-profit seniors’ organizations, and financial counselors specializing in seniors’ issues.
Also Read:- 2025 IRS Refund Delays: What’s Causing It & You Can Speed Up the Process