Sherry
If you’re a Canadian senior relying on the Canada Pension Plan (CPP) or Old Age Security (OAS) benefits, mark your calendars: June 26, 2025 is the next payment date.
Moreover, July 2025 brings a 1.0% increase in OAS payments, reflecting a 2.3% rise over the past year. This adjustment aims to help seniors keep pace with the rising cost of living.
In this article, we’ll delve into the specifics of these payments, including eligibility, amounts, and how to manage your payments effectively.
Payment Dates for June 2025
Both CPP and OAS payments are scheduled for Thursday, June 26, 2025. If you’re enrolled in direct deposit, expect the funds to appear in your account on that date. For those receiving paper cheques, delivery may take a few additional business days.
Canada Pension Plan (CPP) Payments
Eligibility
To qualify for CPP benefits, you must have:
- Made contributions to the CPP during your working years.
- Reached the age of 60 or older.
Payment Amounts
As of January 2025, the maximum monthly CPP payment for someone starting at age 65 was $1,433. However, most recipients receive less than this maximum. The average new retirement benefit at age 65 is closer to $900 per month.
Taxation
CPP payments are considered taxable income. Taxes are not automatically withheld unless you opt for voluntary deductions. To set this up, you can:
- Log in to your My Service Canada Account.
- Call 1-800-277-9914.
- Visit a Service Canada office in person.
Old Age Security (OAS) Payments
Eligibility
To be eligible for OAS:
- You must be 65 years or older.
- Be a Canadian citizen or legal resident.
- Have lived in Canada for at least 10 years after turning 18.
Payment Amounts (April to June 2025)
| Age Group | Maximum Monthly Payment | Income Threshold (2023) |
|---|---|---|
| 65–74 | $727.67 | < $142,609 |
| 75+ | $800.44 | < $148,179 |
*Note: These amounts are based on the April to June 2025 quarter.
Upcoming Increase in July 2025
Starting July 2025, OAS payments will increase by 1.0%, resulting in a 2.3% rise over the past year. This adjustment reflects changes in the Consumer Price Index (CPI).
Summary Table
| Benefit | Payment Date | Maximum Monthly Amount (April–June 2025) | July 2025 Increase |
|---|---|---|---|
| CPP | June 26 | Up to $1,433 | N/A |
| OAS | June 26 | $727.67 (65–74), $800.44 (75+) | +1.0% |
Managing Your Payments
Direct Deposit
To ensure timely receipt of your payments:
- Sign up for direct deposit through your My Service Canada Account.
- Alternatively, you can call 1-800-277-9914 or visit a Service Canada office.
Tax Considerations
Remember, both CPP and OAS payments are taxable. To avoid surprises during tax season, consider setting up voluntary tax deductions.
The upcoming June 26, 2025 payments for CPP and OAS are crucial for many Canadian seniors. By understanding the payment schedules, amounts, and tax implications, you can better manage your finances. Remember, enrolling in direct deposit and considering voluntary tax deductions can streamline your experience and ensure timely and efficient receipt of your benefits.
FAQs
When will I receive my June 2025 CPP and OAS payments?
Both payments are scheduled for Thursday, June 26, 2025. Direct deposit recipients will see the funds in their accounts on that date, while cheque recipients may experience a slight delay.
How can I increase my OAS payments?
You can increase your OAS payments by deferring them until after age 65. For each month you delay, your monthly amount increases by 0.6%, up to a maximum of 36% at age 70.
Are CPP and OAS payments taxable?
Yes, both CPP and OAS payments are taxable. You can set up voluntary tax deductions through your My Service Canada Account or by contacting Service Canada directly.