Social Security 2026 Update: If you’re a Canadian planning for retirement or already collecting benefits, the CPP & OAS changes coming in 2025 are essential news. These programs form the bedrock of retirement income for millions of Canadians. Whether you’re newly retired, planning to leave the workforce soon, or simply thinking ahead, understanding how the Canada Pension Plan (CPP) and Old Age Security (OAS) are evolving can help you plan wisely.
In 2025, significant updates are being made to both programs. These updates are designed to strengthen long-term financial stability, align benefits with inflation, and create fairer contribution structures for earners across all income levels. This article explores every key change—from increased maximum monthly payments and enhanced contribution structures to revised eligibility thresholds and payment dates.
We break it all down in a simple, conversational way—clear enough for beginners, but comprehensive enough for financial professionals. If you’re looking to understand exactly what’s changing and how it impacts your retirement plan, you’re in the right place.
Social Security 2026 Update
| Feature | Details | Source / Link |
|---|---|---|
| CPP Contribution Rate (2025) | 5.95% for employees and employers; 11.9% for self-employed individuals | Wealthsimple |
| CPP Max Monthly Benefit | $1,433.00 at age 65; Average payment: $899.67 | Hudspeth |
| OAS Max Monthly (65-74 / 75+) | $727.67 / $800.44 depending on age bracket | Canada.ca |
| OAS Clawback Threshold | Starts at $93,454; eliminated at $151,668 (65–74) or $157,490 (75+) | Canada.ca |
| YAMPE Expansion | Contributions apply to earnings between $71,300 and $81,200 | Wealthsimple |
| CPP/OAS Payment Dates | Monthly in 2025: Jan 29, Feb 26, Mar 27, Apr 28, and so on | QTrade |
The CPP & OAS updates for 2025 bring meaningful increases in benefits and updated thresholds that better reflect today’s cost of living. With changes like enhanced YAMPE contributions, inflation-indexed payments, and clear incentives for deferral, Canadians have more control and clarity than ever in retirement planning.
Take the time to review your income, use online estimators, and speak with a financial advisor. Small choices—like when to start your benefits or whether to defer—can have big long-term impacts on your financial security.
Canada Pension Plan (CPP): What’s Changing in 2025?
Understanding CPP
The Canada Pension Plan (CPP) is a government-managed retirement income program for workers in Canada (excluding Quebec). It’s funded through payroll contributions and provides income replacement based on earnings and contributions made during your career.
Contribution Increases
In 2025, the base contribution rate remains 5.95% each for employees and employers. If you’re self-employed, you pay the full 11.9%. Contributions apply to income above $3,500 up to a maximum of $71,300.
That means a worker earning $71,300 will contribute $4,067 annually, and their employer will match it—totaling over $8,134 annually toward their future retirement.
New Tier: YAMPE Contributions
The Year’s Additional Maximum Pensionable Earnings (YAMPE) introduces a second tier for higher earners:
- Applies to earnings between $71,300 and $81,200
- Employees and employers each contribute 4% on these earnings
- Self-employed individuals pay 8%
This tier helps fund enhanced benefits for those who contribute more, creating a more equitable retirement plan.
Higher Monthly CPP Payments
Starting in 2025, the CPP enhancement phase reaches its next level:
- Income replacement increases from 25% to 33.33%
- Maximum monthly CPP at age 65 increases to $1,433
- Average monthly CPP payment: approximately $899.67
This increase is great news for new retirees who have contributed consistently over their careers.
Other CPP Notes
- CPP remains portable—you can receive it even if you move abroad.
- Early retirement (starting as early as age 60) reduces your benefit by 0.6% per month early.
- Delaying beyond age 65 boosts benefits by 0.7% per month, up to age 70.
Old Age Security (OAS): What’s New in 2025?
Understanding OAS
Old Age Security (OAS) is Canada’s universal pension, funded through general tax revenue. It’s not tied to your employment or income history and is available to most residents age 65 or older who meet residency requirements.
Increased OAS Monthly Payments
OAS benefits increase in 2025 due to inflation adjustments:
- Ages 65–74: Maximum monthly payment is $727.67
- Ages 75+: Higher maximum of $800.44 to reflect increased health needs
These amounts are automatically adjusted quarterly based on the Consumer Price Index (CPI).
OAS Clawback Thresholds
High-income seniors will see some or all of their OAS benefits reduced:
- Clawback begins at net annual income of $93,454
- Benefits eliminated at:
- $151,668 for those aged 65–74
- $157,490 for those aged 75+
This ensures that the highest-income seniors do not receive full public benefits.
Deferral Incentives
You may defer OAS for up to 60 months (5 years) beyond age 65. Each month deferred increases the payment by 0.6%, for a maximum 36% increase if you wait until age 70.
This can be a smart strategy for people with other retirement income sources early on.
CPP & OAS Payment Dates for 2025
Here are the scheduled payment dates for both CPP and OAS benefits in 2025:
- January: 29
- February: 26
- March: 27
- April: 28
- May: 28
- June: 26
- July: 29
- August: 27
- September: 25
- October: 29
- November: 26
- December: 22
Set up direct deposit through your My Service Canada Account to receive payments securely and promptly.
Social Security 2026 Update Apply for CPP & OAS
Apply Online
- Visit Service Canada
- Log into your My Service Canada Account (MSCA)
- Click on Apply for CPP/OAS
- Complete and submit the form
Apply by Mail
- Download the CPP or OAS application from the Service Canada website
- Fill out all required sections
- Mail the form to the address indicated on the document
Tip: Apply about 6 months before your preferred start date to avoid delays.
Massive Social Security Updates for 2025 — Higher Checks and New Age Rules!
Real-World Examples
Sarah, 65
Sarah has earned around $60,000 for most of her career and retires in 2025.
- CPP Contribution: ~$3,381/year
- Receives: ~$1,100/month CPP + $727.67 OAS
- Total Monthly Income: $1,827.67
Dave, 75
Dave earns over $155,000 in retirement income.
- Receives max CPP: $1,433/month
- No OAS due to full clawback
- Total Monthly Income: $1,433
Aisha, 68
Aisha deferred her OAS by 2 years.
- Regular OAS: $727.67
- Deferred OAS: $727.67 + 14.4% = $832.42/month
FAQs On Social Security 2026 Update
Can I collect CPP and OAS at the same time?
Yes. Most retirees receive both programs simultaneously.
Are CPP and OAS taxable?
Yes. Both are considered taxable income by the CRA.
Will working after 65 affect my benefits?
Yes and no. You can still collect CPP and OAS while working, but high income may reduce OAS due to the clawback.
Can I get these benefits if I live outside Canada?
CPP is paid worldwide. OAS requires 20+ years of Canadian residency after age 18 to qualify for full payments abroad.
Is it better to delay CPP or OAS?
That depends on your health, income needs, and retirement goals. Delaying can increase your lifetime benefit.
