If you’re a Canadian senior planning for retirement—or already receiving public pension benefits—you’ve likely heard the figures $1,620, $1,950, and $2,700 when discussing monthly retirement income.
These figures aren’t random; they represent combinations of Canada Pension Plan (CPP), Old Age Security (OAS), and, in some cases, the Guaranteed Income Supplement (GIS).
This article explains where these numbers come from, who qualifies for these benefits, and how you can make the most out of your retirement benefits.
Understanding CPP and OAS
What is Canada Pension Plan (CPP)?
CPP is a work-based pension available to those who have contributed during their working years, either through employment or self-employment. It provides monthly payments during retirement, with the amount based on how much you contributed over the years.
- Eligibility for CPP:
- Be at least 60 years old.
- Have made at least one valid CPP contribution.
- You can begin collecting CPP as early as age 60.
- CPP Payment Amount:
- The full CPP amount is available starting at age 65.
- If you delay your CPP collection until after 65, your payments will increase by 8.4% per year up to age 70.
What is Old Age Security (OAS)?
OAS is a non-work-based pension for seniors who meet specific residency requirements. Unlike CPP, OAS is not based on your work history but on your age and years of residency in Canada.
- Eligibility for OAS:
- You must be at least 65 years old.
- You need to have lived in Canada for at least 10 years after turning 18.
- OAS is available to seniors who have lived in Canada, even if they move abroad, as long as they meet residency criteria.
- OAS Payment Amount:
- $727.67 per month for ages 65 to 74.
- $800.44 per month for ages 75+.
What is Guaranteed Income Supplement (GIS)?
The GIS is an additional benefit for low-income seniors. It is available to those already receiving OAS, and it is not taxable.
- Eligibility for GIS:
- Must already receive OAS.
- Income must fall below specific thresholds, which varies depending on marital status.
Who Qualifies for $1,620, $1,950, and $2,700?
The $1,620, $1,950, and $2,700 monthly combinations represent different scenarios based on your work history, age, and financial status.
Monthly Scenarios for 2025
$1,620/Month Scenario
This is a typical situation for seniors who contributed regularly to CPP and receive the standard OAS.
- CPP (Average): ~$808.14
- OAS (Age 65–74): $727.67
- Total: ~$1,620/month
$1,950/Month Scenario
This applies to those who have higher lifetime earnings and are eligible for the OAS increase after turning 75.
- CPP (Higher Contributor): ~$1,150
- OAS (75+): $800.44
- Total: ~$1,950/month
$2,700/Month Scenario
This scenario includes seniors who are eligible for maximum CPP, OAS for those aged 75+, and GIS for those with low income.
- CPP (Maximum): $1,433.00
- OAS (75+): $800.44
- GIS (Low Income): $1,086.88
- Total: ~$2,700/month
Eligibility Criteria for CPP, OAS, and GIS
CPP Eligibility
- At least 60 years old.
- Must have contributed to CPP during employment or self-employment.
- You can apply online or via My Service Canada Account.
OAS Eligibility
- Must be 65 or older.
- Must have lived in Canada for at least 10 years after turning 18.
- OAS is available even if you live abroad, as long as you meet the residency requirements.
GIS Eligibility
- Must be already receiving OAS.
- Income must be below the GIS threshold (about $21,456 for single individuals).
- Application is required through Service Canada.
How to Maximize Your Benefits
- Delay CPP:
Delaying CPP after age 65 increases your monthly benefit by 0.7% per month, up to a 42% increase if you wait until age 70. - Review Your CPP Contributions:
Regularly check your My Service Canada Account to verify your CPP contribution history. This helps you estimate future payments and ensures everything is accurate. - Avoid OAS Clawback:
If your income exceeds $86,912 in 2025, your OAS will be reduced. Consider income-splitting or withdrawing from RRSPs strategically to stay below the threshold. - Apply Early:
Apply for CPP and OAS at least 6 months before you want to begin receiving payments. This avoids delays and ensures you receive your benefits on time. - Split CPP with Your Spouse:
If both you and your spouse are receiving CPP, consider splitting the benefit to lower taxable income and possibly avoid the OAS clawback.
When Will Payments Be Made?
The payment date for June 2025 is June 28, 2025. Payments are typically issued on the last weekday of the month. To ensure you don’t experience delays, keep your direct deposit information updated through your My Service Canada Account.
Understanding the ins and outs of CPP, OAS, and GIS is crucial for maximizing your retirement benefits. By reviewing your eligibility and taking steps to optimize your benefits, you can ensure a steady income during retirement.
Whether you’re looking at $1,620, $1,950, or $2,700 per month, knowing how to qualify, apply, and plan ahead can significantly impact your financial future.
FAQs
How much can I receive from CPP and OAS in 2025?
You can receive anywhere from $1,620 to $2,700 per month depending on your contributions to CPP, eligibility for OAS, and eligibility for GIS.
Can I receive both OAS and GIS?
Yes, you can receive both OAS and GIS if you meet the income requirements for GIS while receiving OAS.
When should I apply for CPP and OAS?
It’s recommended to apply at least 6 months before you want to start receiving your benefits to avoid delays in processing.