Genuine
As Canada faces rising inflation and increasing costs of living, the government has made a significant change to its retirement benefits in 2025.
If you’re already retired, or you’re planning to retire soon, you could be eligible for increased monthly pension payments from the Canada Pension Plan (CPP) and Old Age Security (OAS).
In this article, we’ll break down the new pension updates, explain how you can benefit from them, and walk you through eligibility criteria, payment dates, and strategies to maximize your retirement benefits.
2025 Canada Retirement Pension Overview
In 2025, Canadians will see a rise in their monthly retirement benefits through CPP and OAS. These increases come as a relief to many seniors who are grappling with higher costs for housing, groceries, healthcare, and transportation.
| Feature | Details |
|---|---|
| Max CPP Monthly Benefit | $1,433.00 |
| Average CPP Monthly Benefit | $808.14 |
| Max OAS (75+) | $800.44/month |
| Combined Max CPP + OAS | $2,233.44/month |
| CPP Eligibility | Age 60–70 |
| OAS Eligibility | Age 65+ |
| CPP Increase (2025) | ~2.6% (based on YMPE) |
| OAS Adjustment | Quarterly, based on CPI |
| Next Payment Date | June 26, 2025 |
These increases are part of Canada’s ongoing adjustments to keep up with inflation, ensuring seniors can maintain their quality of life. Let’s explore what this means for you.
How the Canada Pension Plan (CPP) Works
The CPP is designed to provide Canadians with a monthly income during retirement, based on the contributions made during their working years. The amount you receive depends on how much you contributed and when you choose to start collecting your payments.
- Max CPP at Age 65: As of 2025, the maximum monthly benefit for someone who starts receiving CPP at age 65 is $1,433.
- Average CPP: Most Canadians receive a much lower amount, with the average CPP monthly payment sitting at around $808.14.
Factors Affecting Your CPP Payments
- Income and Contributions: Higher income and consistent contributions throughout your career will result in higher monthly payments.
- Work History: The longer you contribute, the more you’ll receive.
- Start Age: The earlier you begin collecting CPP (from age 60), the lower your monthly benefit will be. Waiting until age 70 can increase your CPP by over 40%.
For example, someone who waits until 70 to collect CPP will see a significant increase in their monthly payment, a crucial strategy if you are financially stable and in good health.
Understanding Old Age Security (OAS)
Unlike CPP, OAS is not based on your work history. It’s a government-provided pension available to Canadians over the age of 65.
- OAS Payments for 2025:
- $727.67/month for those aged 65–74
- $800.44/month for those aged 75+
OAS payments are adjusted every three months according to inflation, using the Consumer Price Index (CPI), ensuring that payments keep up with the rising costs of living.
Eligibility for CPP and OAS
Canada Pension Plan (CPP) Eligibility
- Age: You must be between 60 and 70 to qualify.
- Contributions: You must have made at least one valid CPP contribution during your working years.
Old Age Security (OAS) Eligibility
- Age: You must be 65 or older.
- Residency: You need to have lived in Canada for at least 10 years after the age of 18 to qualify for partial OAS. For full benefits, you’ll generally need to have lived in Canada for 40 years.
If you’ve lived or worked in other countries, international agreements may still allow you to qualify for OAS.
Maximizing Your Benefits
To make the most out of these government benefits, it’s essential to consider strategies that can increase your total monthly income:
Delaying Your CPP
Delaying your CPP until age 70 can boost your monthly payments by over 40%. If you’re in good health and don’t need to rely on CPP immediately, this could be a valuable strategy to maximize your benefits.
Applying for Guaranteed Income Supplement (GIS)
If you’re eligible for OAS and have low income, you may qualify for the Guaranteed Income Supplement (GIS), which can provide up to $1,065/month for single seniors. This is a crucial benefit for those who need additional support beyond CPP and OAS.
Splitting CPP
If your spouse has a significantly higher CPP benefit, you can consider pension sharing, which can reduce your overall tax burden without impacting your total income.
Avoiding OAS Clawbacks
If your income exceeds $90,997 annually, OAS will be clawed back. To avoid this, consider splitting income with a spouse, using Tax-Free Savings Accounts (TFSAs) for withdrawals, and seeking advice from a tax professional to tailor your strategy.
Upcoming Payment Dates
Both CPP and OAS payments are made monthly. Here are the upcoming 2025 payment dates:
- May 28, 2025
- June 26, 2025
- July 29, 2025
- August 27, 2025
- September 25, 2025
- October 29, 2025
- November 26, 2025
- December 22, 2025
Ensure your My Service Canada Account is up-to-date to avoid delays in receiving your benefits.
Canada’s increased retirement pension benefits in 2025 provide much-needed financial relief for seniors navigating the rising costs of living.
By understanding the eligibility requirements and making strategic decisions—such as delaying CPP, applying for GIS, and splitting income—you can ensure that you’re getting the most out of your benefits.
Whether you’re already retired or planning for the future, these updates can help you build a more secure retirement.
FAQs
How much will I receive from CPP if I start collecting at age 60?
The amount will be lower than the maximum of $1,433, as starting early reduces your monthly payments. You can expect a significant decrease, depending on how early you start.
Can I qualify for OAS if I’ve lived in other countries?
Yes, international agreements may allow you to qualify for OAS even if you didn’t live in Canada for the required 40 years.
What is the GIS, and how do I apply?
The GIS is a supplementary benefit for low-income seniors who receive OAS. You can apply through your My Service Canada Account or during your OAS application process.