Canada’s Retirement Pension Just Increased: If you’re a Canadian retiree or planning to retire soon, you’ll want to know about the latest increase to Canada’s retirement pension benefits. In 2025, the Canada Pension Plan (CPP) has increased its maximum monthly benefit to $1,433, while the Old Age Security (OAS) payment has risen to $800.44 for those 75 and over. Combined, eligible seniors can now receive up to $2,233.44 per month in federal retirement benefits—a much-needed boost amid rising living costs and inflation.
With inflation putting pressure on housing, healthcare, food, and other everyday essentials, the 2025 retirement pension adjustments are welcome news. These enhancements are part of a broader effort by the Canadian government to help older adults maintain financial independence and quality of life as costs rise. But understanding exactly how these payments work—and how to get the full amount—can be a bit complicated.
This comprehensive guide breaks down what these increases mean for you. It covers eligibility, payment schedules, tips for maximizing your pension, and strategies to coordinate with other benefits like the Guaranteed Income Supplement (GIS). Whether you’re already drawing benefits or planning ahead, this information can help you feel more financially secure in your retirement.
Canada’s Retirement Pension Just Increased
| Feature | Details |
|---|---|
| Max CPP Monthly Benefit | $1,433.00 |
| Average CPP Monthly Benefit | $808.14 |
| Max OAS (Age 75+) | $800.44/month |
| Combined Max CPP + OAS | $2,233.44/month |
| Eligibility Ages | CPP: 60–70; OAS: 65+ |
| CPP Increase (2025) | 2.6% (approximate, indexed to YMPE) |
| OAS Adjustment | Indexed quarterly to Consumer Price Index (CPI) |
| Next Payment Date | May 28, 2025 |
| Official Source | Canada.ca – CPP & OAS |
With the 2025 increases to Canada’s retirement pensions, CPP and OAS offer stronger support to seniors navigating rising living costs. While few people receive the absolute maximum, these programs—combined with GIS and other provincial supports—can make a significant difference in retirement stability.
Taking control of your retirement income means understanding your eligibility, applying strategically, and making informed decisions. Every dollar counts, especially in retirement. So if you’re eligible or nearing eligibility, don’t leave money on the table. Review your options, optimize your plan, and apply confidently.
Understanding the Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) is a public retirement program funded by contributions from Canadian workers and their employers. You make mandatory contributions during your working years, and in return, receive a monthly benefit after you retire.
In 2025, the maximum monthly CPP benefit for someone retiring at 65 is $1,433, up approximately 2.6% from the previous year. However, the average CPP payment is currently $808.14, reflecting differences in work history, contributions, and age of retirement.
What Affects Your CPP Amount?
- Your contribution history: Contributions are based on annual income up to a yearly maximum (the YMPE).
- Your average annual earnings: Higher consistent income equals higher contributions.
- The age you begin your CPP: You can take CPP as early as age 60 or delay until age 70. Starting early results in a lower monthly payment, while delaying increases your benefit by about 0.7% for each month after age 65.
Deferring until age 70 can increase your CPP by over 40%, which could significantly improve your financial situation in later years. To apply, use your My Service Canada Account, and monitor your contribution history for accuracy.
What You Need to Know About Old Age Security (OAS)
Unlike CPP, Old Age Security (OAS) is funded through general tax revenues and does not require prior employment or contributions. Instead, it’s based on age and residency.
In 2025, OAS provides:
- $727.67/month for seniors aged 65 to 74
- $800.44/month for those 75 and older
These amounts are reviewed quarterly and adjusted based on changes in the Consumer Price Index (CPI) to maintain purchasing power.
OAS Eligibility Requirements:
- You must be 65 years or older
- You must have lived in Canada for at least 10 years since age 18 to receive partial benefits
- To receive the full amount, 40 years of residency is typically required
Even if you live outside of Canada, you may qualify for OAS if you meet the residency and citizenship requirements. For more information, use the OAS estimator to calculate your potential benefit.
CPP and OAS Payment Schedule for 2025
Your CPP and OAS benefits are deposited monthly. Here are the remaining dates in 2025:
- May 28
- June 26
- July 29
- August 27
- September 25
- October 29
- November 26
- December 22
To avoid delays, keep your direct deposit and mailing address information current in your My Service Canada Account.
Who Is Eligible for CPP and OAS?
CPP Eligibility:
To qualify for the Canada Pension Plan, you must:
- Be 60 years or older
- Have made at least one valid contribution to the plan
OAS Eligibility:
To receive Old Age Security, you must:
- Be 65 or older
- Have lived in Canada for 10+ years after age 18
- To receive full benefits, 40+ years of residency is typically required
Your country of residence may affect benefit taxation and eligibility if you’ve moved abroad. Review Canada’s international social security agreements if this applies to you.
What Can You Expect From Combined CPP and OAS Benefits?
In 2025, the maximum combined CPP and OAS benefit for someone over 75 is $2,233.44 per month, or $26,801.28 per year. This assumes full eligibility and maximum contribution history.
Most Canadians receive less than the maximum due to gaps in work history or immigration. But even with a partial pension, CPP and OAS can form a solid foundation for retirement planning.
Real-World Example:
Helen, age 70, worked full-time for 30 years but took 10 years off to raise children. She receives $970 in CPP and $800.44 in OAS, totaling $1,770.44/month. She also qualifies for partial GIS based on her modest savings and low current income.
Tips to Maximize Your CPP and OAS Benefits
1. Delay Payments If Possible
Delaying CPP and OAS up to age 70 results in larger monthly benefits. OAS increases by 0.6% per month delayed after age 65—a total increase of 36% by age 70.
2. Check Your Contribution Record
Sign in to your My Service Canada Account to verify your CPP contributions and request corrections if needed.
3. Apply for Guaranteed Income Supplement (GIS)
If you receive OAS and have a low income, you may also qualify for the GIS, which can add up to $1,065/month for single seniors. Couples may also qualify based on joint income. See GIS eligibility.
4. Explore Pension Sharing
If one spouse has higher CPP income, sharing it can reduce taxes. This strategy may help couples lower their combined tax burden.
5. Track Clawback Thresholds
OAS benefits begin to be clawed back when your income exceeds $90,997 in 2025. To reduce clawbacks:
- Use income-splitting
- Withdraw strategically from RRSPs or TFSAs
- Work with a tax advisor
What If You’re Still Working at Age 65 or 70?
Continuing to work into your 60s can still be financially rewarding. If you’re receiving CPP before age 65 and continue working, you must continue to contribute to CPP until 65. These contributions earn you Post-Retirement Benefits (PRB), which are added to your monthly payment.
You may also choose to continue contributing between ages 65 and 70, which further increases your PRB. OAS eligibility is unaffected by your employment, but high-income earners may face the OAS Recovery Tax (clawback).
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What Financial Experts Recommend
“CPP and OAS are just two pieces of your retirement puzzle. You should also factor in personal savings, employer pensions, and government supplements like GIS,” says Clara Lee, CFP, RetireSmart Canada.
“Delaying benefits can pay off in the long run—especially if you’re healthy and expect to live into your 80s or 90s. Don’t just take benefits because you’re eligible. Consider the long-term math,” advises James Murray, CPA and retirement planner in Ottawa.
FAQs On Canada’s Retirement Pension Just Increased
1. Can I receive CPP and OAS together?
Yes. Many retirees qualify for and receive both benefits simultaneously.
2. Are CPP and OAS taxable?
Yes. Both are considered taxable income and must be included in your annual tax return.
3. Can I apply for CPP or OAS retroactively?
Yes. You can request retroactive payments of up to 12 months for CPP and 11 months for OAS.
4. How do I update my banking info for direct deposit?
Update your direct deposit details through My Service Canada Account.
5. What happens if I miss the application deadline?
There is no fixed deadline, but you may lose out on months of benefits. Apply 6–8 months before your desired start date.
