If you’re retired or planning to retire soon in Canada, there’s some great news for your wallet. In 2025, both Canada Pension Plan (CPP) and Old Age Security (OAS) benefits have increased, helping seniors better manage rising living costs. With food, housing, transportation, and healthcare expenses growing, these updated payouts are arriving just in time.
Whether you’re currently retired or preparing for the future, knowing how CPP and OAS work—and how to combine them effectively—can make a big difference in your monthly income and long-term financial comfort.
Overview
Let’s look at the updated retirement benefits for 2025:
| Feature | Details |
|---|---|
| Max CPP Monthly Benefit | $1,433.00 |
| Average CPP Benefit | $808.14 |
| Max OAS (Age 75+) | $800.44 |
| Max CPP + OAS Combined | $2,233.44 per month |
| CPP Eligibility | Ages 60–70 |
| OAS Eligibility | Age 65+ |
| CPP Increase (2025) | About 2.6% (based on YMPE) |
| OAS Adjustment | Quarterly (tied to CPI) |
| Next Payment Date | May 28, 2025 |
CPP
The Canada Pension Plan is funded by your contributions during your working life. Your payout depends on how much you contributed and when you start collecting.
In 2025:
- Max monthly payment at age 65 is $1,433
- Average payment is $808.14
Factors that affect your CPP:
- Earnings and contributions: More income = higher benefits
- Work history: The longer you pay into CPP, the better
- Start age: You can begin as early as 60, but benefits are reduced. Delaying increases your monthly payment by 0.7% for each month after 65—up to 42% more if you wait until 70.
OAS
Old Age Security doesn’t require contributions. It’s based on your age and residency in Canada.
In 2025:
- Ages 65–74 get up to $727.67/month
- Ages 75+ get up to $800.44/month
This amount adjusts every three months based on the Consumer Price Index (CPI), so it keeps up with inflation.
OAS Eligibility:
- Must be 65 or older
- Must have lived in Canada for at least 10 years after age 18
- Full benefit usually requires 40 years of Canadian residency
- Some non-residents can qualify under international agreements
Payment Dates
Monthly payments continue throughout the year. Here’s when CPP and OAS will be issued for the rest of 2025:
| Month | Payment Date |
|---|---|
| May | May 28 |
| June | June 26 |
| July | July 29 |
| August | August 27 |
| September | September 25 |
| October | October 29 |
| November | November 26 |
| December | December 22 |
You can manage or update your payment info using your My Service Canada Account.
Combined Benefits
If you qualify for the maximum CPP and OAS and are 75 or older, you could collect up to $2,233.44/month, which equals $26,801.28/year.
Most Canadians receive less than the maximum, but even partial benefits provide a solid income base in retirement.
Example:
Helen, 70, worked for 30 years and raised kids for 10. She gets $970 from CPP and $800.44 from OAS, totaling $1,770.44/month. She also receives GIS (Guaranteed Income Supplement), since her income is modest.
Tips
Delay CPP or OAS
- CPP increases 0.7% for every month you delay past 65—up to 42% more by age 70.
- OAS increases 0.6% per month after 65—up to 36% more by age 70.
Check Your Record
Use My Service Canada Account to view your CPP history and confirm it’s accurate. Missing contributions could lower your benefits.
Apply for GIS
If your income is low, the Guaranteed Income Supplement can add up to $1,065/month in 2025 for single seniors receiving OAS.
Use Pension Sharing
If your spouse has higher CPP, pension sharing can reduce your taxes without reducing your combined income.
Avoid the OAS Clawback
OAS starts getting clawed back once your income exceeds $90,997. To avoid this:
- Split income with a spouse
- Withdraw from TFSAs instead of RRSPs
- Consult a tax advisor for personalized planning
Still Working?
If you take CPP before age 65 and continue working, you must keep contributing. These extra contributions create Post-Retirement Benefits that add to your future payments. After age 65, contributions are optional but still beneficial.
OAS is not reduced by work income, but higher income could trigger the OAS Recovery Tax.
Expert Advice
Clara Lee, financial planner with RetireSmart Canada, says, “CPP and OAS are great tools, but you need to include RRSPs, workplace pensions, and GIS in your plan.”
James Murray, CPA and retirement advisor in Ottawa, adds, “Delaying your benefits can really pay off if you expect to live into your 80s or 90s. It’s not just about age—it’s about maximizing income over time.”
FAQs
What is the max CPP payment in 2025?
The maximum CPP benefit in 2025 is $1,433 per month.
Who qualifies for OAS in Canada?
Anyone 65+ who lived in Canada for 10+ years after age 18.
When are CPP and OAS paid next?
The next payment date is May 28, 2025.
Can I get both CPP and OAS?
Yes, many Canadians receive both programs together.
What is GIS and who gets it?
The Guaranteed Income Supplement supports low-income OAS recipients.
