Episode 85 : Your OAS Went Up — But So Did the Cost of Living. What Should Retirees Review Now?

Published September 28, 2026

An increase in Old Age Security can be welcome news for Canadian retirees. But what matters isn't simply whether your OAS payment went up.

It's whether your overall retirement income is keeping pace with your actual cost of living.

In this episode of Money Monday, Darren Devine, Financial Planner with Sun Life and President of Devine & Associates, explores what an increase in Old Age Security (OAS) can mean within the bigger retirement income picture.

OAS payments are reviewed periodically and adjusted based on changes in the Consumer Price Index. But an increase in a government benefit doesn't necessarily mean every retiree's individual cost of living has increased by the same amount—or that their retirement income needs haven't changed.

That's because every household experiences rising costs differently.
Groceries, utilities, property taxes, insurance, transportation, travel, home maintenance and other everyday expenses can all affect how far retirement income actually goes.

That's why an OAS increase can provide a useful opportunity to review more than the payment itself.

This episode explores several areas retirees may want to revisit:
→ Everyday spending: Have regular expenses gradually increased over the past year?
→ Retirement income: How do OAS, CPP, pensions, investments, savings and other income sources work together?
→Family responsibilities: Has helping children, grandchildren or other family members changed your spending?
→ Lifestyle: Are you traveling more, spending differently, or pursuing new priorities in retirement?
→ Personal circumstances: Have health, housing, family or other life changes affected what you need from your financial plan?
→ Long-term goals: Does your current retirement strategy still reflect what's important to you today?

Retirement planning isn't about watching one number in isolation.

It's about understanding how all the pieces work together.

An increase in one source of retirement income may be positive, but it doesn't automatically tell you whether your overall plan is keeping pace with your spending, goals and changing circumstances.

That's one of the reasons regular financial reviews can be valuable.

They create an opportunity to look at what has changed, identify expenses that may have quietly increased, revisit income needs and make sure the plan continues to reflect the life you're actually living.

Because retirement isn't static.
Your retirement plan shouldn't be either.

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Related Money Monday Episodes 

An OAS increase is only one piece of your retirement income picture. Understanding how government benefits, taxes, withdrawals, spending and inflation work together can provide a clearer view of whether your retirement plan is still supporting the life you want to live.
These Money Monday episodes explore some of those connected retirement income decisions.
Episode 56: What Will Your Paycheque Be in Retirement in 2026?
Retirement income can come from several different sources. This episode explores how CPP, OAS, pensions, savings and investments can work together to create the income you'll rely on after your regular employment paycheque ends.
Episode 60: Will You Outlive Your Money… or Will Your Money Outlive You?
Rising living costs matter even more when retirement could last decades. This episode explores longevity and why retirement planning needs to consider how long your income and savings may need to support you.
Episode 61: When Should I Take CPP? 60, 65, or 70?
CPP and OAS may both form part of your government retirement benefits, but the decisions surrounding them are different. This episode explores the considerations that can influence when Canadians choose to begin CPP.
Episode 63: How Is CPP Taxed in Retirement?
The amount of retirement income you receive isn't always the same as the amount available to spend. This episode explores how CPP is taxed and why taxes need to be considered when looking at your overall retirement income.
Episode 65: How Much Tax Will I Pay on My RRIF?
RRIF withdrawals can become another important source of taxable retirement income. This episode explores how RRIF taxation fits into the broader retirement income picture and why withdrawal planning matters.

Your OAS Went Up — But So Did the Cost of Living. What Should Retirees Review Now?


Presented by Darren Devine, CFP®, CLU®, Financial Planner, Sun Life and President of Devine and Associates Financial Services Inc.

Your Old Age Security may have gone up—but so has the cost of living. So the real question is: has your plan kept up too?

Hello, and welcome to Money Monday, where we help simplify your financial journey. I’m Darren Devine, Financial Planner with Sun Life and President of Devine & Associates. For over 20 years, I’ve been helping families across Ontario plan with confidence, protect what matters most, and stay grounded through life’s financial ups and downs.

When retirees hear that their OAS has increased, it can feel like welcome news.

And it is.

But for many people, that increase doesn’t always go as far as they hoped.

Because while government benefits may rise over time, so can the day-to-day cost of living.
Groceries, utilities, property taxes, insurance, travel, home maintenance—those costs don’t always move evenly, and they don’t affect every household the same way.

That’s why moments like this are a good reminder to review the bigger picture.

Not just what came in.

But what’s going out.

And whether your current plan still reflects the life you’re living now.

For some retirees, this is a good time to review spending.

Are there areas where costs have quietly crept up?

Are regular monthly expenses looking different than they did a year ago?

Has helping family, travelling more, or simply managing everyday life started to cost more than expected?

For others, it may be time to review income sources more broadly.

How do government benefits fit alongside pensions, savings, or other retirement income?

Are all the pieces still working together the way they were meant to?

And then there are the personal changes that numbers alone don’t always capture.

  • Health changes.
  • Family changes.
  • A shift in priorities.
  • A different vision for retirement than the one you originally had.

These are often the moments that matter most in a review.

Because good planning is not just about watching one number go up or down.

It’s about making sure the full plan still supports your needs, your goals, and the life you want to live.

That’s one of the reasons regular reviews are so important.

They help catch the details.

The changes that may seem small at first.

The questions that have been sitting in the background.

And the goals that are unique to each client and each family.

So yes, if your OAS has gone up, that’s worth noting.

But it’s also worth asking:

Has my spending changed?

Have my goals changed?

Has anything in my life changed that should be reflected in my plan?

Because retirement planning is not something you set once and forget.

It should keep up with your life as it evolves.

Thanks for tuning into Money Monday. Don’t forget to like and comment for more episodes filled with tips to help make your financial journey a breeze. Until next time, I’m Darren Devine, and you can always talk to us today at DevineAndAssociates.ca!

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