The Guaranteed Income Supplement (GIS) provides financial support for low-income Canadian seniors. The maximum monthly GIS payment in the third quarter (Q3) of 2025 is $1,097.75 for single, divorced, or widowed seniors earning below $22,272 annually.
Canadian couples who both receive Old Age Security (OAS) get up to $660.78 each month if the combined income is under $29,424. Notably, most recipients receive less than maximum amounts, as GIS is reduced by 50 cents for every dollar of other income received.
It’s crucial to note that certain situations can jeopardize your monthly GIS payout. Here are five critical warning signs to watch for:
1. Missing tax-filing deadlines: Failing to file your annual income tax return is the most common reason GIS payments are suspended. Even with minimal income, you must file taxes with the Canada Revenue Agency every year to maintain eligibility.
2. Exceeding income thresholds: GIS is income-tested, with strict annual limits. For 2025, single recipients face a $22,272 threshold, while couples have varying limits from $29,424 to $53,376. Additional government benefits like CERB (Canada Emergency Response Benefit) or employment insurance can temporarily push you over these limits.
3. Extended absence from Canada: Leaving Canada for more than six consecutive months automatically stops GIS payments, as the benefit requires Canadian residency with no international protection agreements.
4. Loss of Old Age Security: Since GIS eligibility depends on receiving OAS, any interruption to your OAS pension immediately affects your GIS payments.
5. Unreported marital status changes: Marriage, divorce, or spousal death impacts GIS calculations. Failing to notify Service Canada of these changes promptly can result in overpayments requiring repayment or sudden payment reductions.
We can see that the monthly GIS payout may not be enough to cover your expenses. So, it’s essential to supplement these payouts with other income streams. One low-cost strategy to create a passive-income stream is to invest in blue-chip dividend stocks such as Bank of Nova Scotia (TSX: BNS) that offers a yield of almost 6%.
Source: Getty Images
Should you own BNS stock right now?
Bank of Nova Scotia reported fiscal Q2 adjusted earnings of $2.1 billion, or $1.52 per share, amid a challenging macroeconomic environment marked by trade tensions and tariff uncertainty.
CEO Scott Thomson emphasized the bank’s focus on controllable factors, including the strengthening of its balance sheet and disciplined capital allocation. Scotiabank announced a quarterly dividend of $1.10, up from $1.06 per share. BNS also launched a 20 million share buyback program, which showcases confidence in its capital generation capabilities. The Canadian big bank ended Q2 with a common equity tier-one ratio of 13.2%, up from 12.9% in Q1.
The bank took a conservative approach to credit provisioning, building nearly $200 million in allowances this quarter for a cumulative $1.8 billion build since late 2022. This provision reflects management’s cautious stance regarding potential tariff impacts on trade-sensitive sectors like automotive, agriculture, and manufacturing.
Its Global Wealth Management delivered strong 17% earnings growth, while Global Banking and Markets generated fee income growth of 26% in underwriting and advisory services. Canadian Banking faced headwinds from deposit margin compression due to rate cuts, though the bank maintained strong mortgage renewal rates exceeding 90%.
International Banking demonstrated the benefits of geographic diversification, with solid performance in Chile, Peru, and the Caribbean offsetting concerns in Mexico. The bank remains committed to its 5-7% earnings per share growth target for fiscal 2025, including the impact of recent provisions and KeyCorp contributions.
Management maintains confidence in achieving a +14% return on equity over the medium term, supported by strategic investments in client primacy, operational efficiency improvements, and strong capital positioning to navigate ongoing uncertainty.
A widening earnings base should support consistent dividend hikes, which will enhance the yield at cost. Analysts expect the TSX stock to raise its annual dividend from $4.32 per share in 2024 to $4.87 per share in 2029.
