Budget 2025: What It Means for Seniors

The Bottom Line

Budget 2025 increases the Alberta Seniors Benefit by $33 million to $540 million, funds the Seniors Drug Program at $863 million covering over 700,000 seniors, and launches a new $3.8 billion continuing care agency called Assisted Living Alberta. You will also benefit from the new 8% tax bracket if you have taxable income. However, the province is projecting a $5.2 billion deficit, and education property taxes are rising after a one-year freeze.

Top Measures That Affect You

1. Alberta Seniors Benefit increases to $540 million in 2025-26, up $33 million from last year. This is driven by growth in the seniors population and the annual rate escalation. The program reaches $619 million by 2027-28.

2. Seniors Drug Program budgeted at $863 million, supporting over 700,000 seniors in 2025-26. This is part of the larger Drugs and Supplemental Health Benefits budget of $1,995 million. Alberta is also participating in the National Pharmacare initiative.

New 8% income tax bracket on the first $60,000 of income saves you up to $750 in 2025. If you are on a pension or have taxable retirement income, this applies to you. Effective January 1, 2025, with payroll adjustments after July 1.

Assisted Living Alberta launches April 1, 2025 with a $3,848 million operating budget (up 5% from 2024-25). This new provincial health agency consolidates continuing care services from home care and community care to assisted living and housing with social supports.

$150 million over three years for the Seniors Lodge Modernization Program, including $50 million in new funding. Lodges provide a safe, secure, and affordable home for lower-income seniors to age in their communities.

$769 million in capital funding for transformational changes in continuing care, including the Continuing Care Capital Program and continuing care centres.

AISH funding at $1,641 million in 2025-26. If you are a senior with a severe disability, benefits remain the same and the new Alberta Disability Assistance Program launching in 2026 will better empower those with disabilities to work without significant reductions to income assistance or medical benefits.

Direct Financial Impact

Income tax: If you have taxable income above $60,000, you save up to $750 per year under the new bracket. If your taxable income is under $60,000, your provincial taxes drop by roughly 20%.

Alberta Seniors Benefit: This is an income-tested benefit. The $33 million increase and growing program budget mean annual rate escalation is keeping pace with costs. Exact payment amounts depend on your marital status, living situation, and income.

Seniors Drug Program: Over 700,000 seniors are covered. If you are 65 or older, this program helps pay for eligible prescription drugs, up to a maximum based on your income. The budget at $863 million ensures the program continues at current service levels.

Property taxes: If you own your home, education property tax rates will increase in 2025-26 after being frozen in 2024-25. The rate is being adjusted to cover roughly one-third of Education's operating costs. The exact increase depends on your municipality and property assessment.

Continuing care costs: The creation of Assisted Living Alberta aims to provide a more efficient and comprehensive approach to continuing care. Federal funding of about $40 million per year for the next three years under the Aging with Dignity agreement supports wage enhancements for Personal Support Workers, which should improve the quality of care you receive.

Service Changes

Assisted Living Alberta (launching April 1, 2025): This new agency takes over all continuing care services, creating a single point of coordination for the full continuum of care from home care to facility-based living. It is budgeted at $3.8 billion and sits under Seniors, Community and Social Services rather than Health. The goal is to ensure that all services, from assisted living and home care to housing and social supports, are available through one system.

Lodge modernization: The $150 million three-year program (including $50 million in new funding) will maintain service quality and support lodge operators providing housing to lower-income seniors across the province.

Primary Care Alberta: A new $322 million agency that aims to improve your access to family physicians, nurse practitioners, and pharmacists, including after-hours and virtual services. Primary care teams will provide coordinated, comprehensive care.

Rural Health Action Plan: The 2024-2027 plan continues, with $44 million for the Physician Training Expansion Program to attract and retain health care providers in rural communities. If you live in a rural area, this aims to improve your access to care.

Affordable Housing Strategy: $767 million over three years through ASHC to expand housing options. Over 110,000 Albertans in 60,746 households are already supported through affordable housing, rental supplements, and other programs.

Home care: Under Assisted Living Alberta, the home care component aims to allow more seniors to receive care at home. The Aging with Dignity agreement funds support this with approximately $40 million per year in federal funding.

What's Missing

No increase to the Seniors Property Tax Deferral Program: Despite education property tax rates rising, the budget does not announce any enhancements to help seniors on fixed incomes defer their property taxes.

No new dental or vision coverage: The budget does not expand supplemental health benefits beyond existing programs.

No inflation-indexed guarantee: While the Alberta Seniors Benefit has an annual rate escalator, the budget does not provide specific guarantees that benefit increases will match the projected 2.6% CPI inflation rate.

Pharmacare details limited: Alberta is participating in the National Pharmacare initiative, but the budget provides limited detail on what additional drug coverage this may provide beyond existing programs.

No dedicated transportation support: Many seniors face transportation challenges, particularly in rural areas. The budget does not include targeted transportation programs for seniors.

Rising utility costs not directly addressed: While the budget notes lower electricity price forecasts, there are no specific utility rebates or affordability measures for seniors in this budget.

Key Dates

Date	What Happens
January 1, 2025	New 8% tax bracket takes effect
After July 1, 2025	Tax savings visible on pension/income withholdings
April 1, 2025	Assisted Living Alberta officially launches
April 1, 2025	New fiscal year begins
2025-26	Seniors Drug Program covers 700K+ seniors at $863M
2025-26 to 2027-28	$150M for Seniors Lodge Modernization
2026	Alberta Disability Assistance Program launches
By 2027-28	Alberta Seniors Benefit projected to reach $619M

Where to Get Help

Alberta Seniors Benefit: Apply through Alberta Seniors, Community and Social Services. Visit alberta.ca/alberta-seniors-benefit or call 1-877-644-9992.

Seniors Drug Program: If you are 65 or older, apply for coverage through Alberta Blue Cross. Visit alberta.ca/seniors-drug-coverage.

Continuing care and home care: Contact Assisted Living Alberta (after April 1, 2025) through your local health services or visit alberta.ca/continuing-care.

Lodge programs: Contact your local seniors lodge or the Alberta Seniors and Community Housing Association for information about lodge living options.

Income tax questions: Contact Alberta Treasury Board and Finance at 780-427-5364 (toll-free: 310-0000 then 780-427-5364).

Alberta 211: Dial 211 for information about community and social services, including programs available to seniors.