In May 2025, Canadians aged 60 and over are seeing a significant increase in retirement pension payments. The Canada Pension Plan (CPP) now offers a maximum monthly benefit of $1,433, while the Old Age Security (OAS) payment for those aged 75 and over has climbed to $800.44/month.
Together, this gives eligible retirees a possible combined federal retirement benefit of $2,233.44/month, or over $26,800/year—a welcome improvement amidst the rising cost of living.
This boost reflects inflation-indexed adjustments designed to protect seniors’ purchasing power and offer financial stability during retirement.
But not all retirees will receive the full amount, as payments depend on work history, contribution levels, and residency status.
Quick Snapshot of Canada’s 2025 Pension Changes
| Feature | Details (2025) |
|---|---|
| Max CPP Monthly Benefit | $1,433.00 |
| Average CPP Benefit | $808.14 |
| Max OAS (75+) | $800.44 |
| Max OAS (65–74) | $727.67 |
| Combined Max (CPP + OAS) | $2,233.44/month |
| Eligibility Ages | CPP: 60–70, Old Age Security: 65+ |
| Next Payment Date | May 28, 2025 |
| CPP Increase | 2.6% (indexed to YMPE) |
| Old Age Security Adjustment | Indexed quarterly to CPI |
What is the Canada Pension Plan (CPP)?
The CPP is a mandatory retirement savings plan funded through contributions from workers and employers. Benefits are paid monthly and calculated based on your income and contribution history.
- Maximum CPP (2025): $1,433/month
- Average Payment: $808.14/month
- You can start CPP at age 60 (with reduced benefits) or delay until age 70 for increased payments—up to 42% more.
Tip: Delaying CPP past age 65 increases your benefit by 0.7% for each month deferred.
Old Age Security (OAS) in 2025
The OAS is a government-funded monthly payment for seniors 65 or older. Unlike CPP, it is not based on work history, but on age and residency.
- Age 65–74: $727.67/month
- Age 75+: $800.44/month
- Indexed quarterly to match inflation (CPI)
- To qualify for full Old Age Security, you typically need 40 years of residency in Canada
Seniors living abroad may still qualify if they meet residency and citizenship requirements.
Payment Dates for CPP & OAS (Remaining 2025)
| Month | Payment Date |
|---|---|
| May | May 28, 2025 |
| June | June 26, 2025 |
| July | July 29, 2025 |
| August | August 27, 2025 |
| September | September 25, 2025 |
| October | October 29, 2025 |
| November | November 26, 2025 |
| December | December 22, 2025 |
Make sure your banking info and address are up to date in your My Service Canada Account to avoid delays.
How to Maximize Your CPP and OAS Benefits
- Delay Benefits: Waiting until age 70 boosts both CPP and Old Age Security payments significantly.
- Review Your Records: Check for contribution errors via your My Service Canada Account.
- Apply for GIS: If your income is low, the Guaranteed Income Supplement could add up to $1,065/month.
- Use Pension Splitting: Couples can split CPP income to lower taxes.
- Avoid OAS Clawbacks: Keep income below $90,997 to avoid benefit reductions.
Are You Still Working at 65+?
- If you’re under 65 and receiving CPP while working, you must continue contributing, which earns Post-Retirement Benefits (PRB).
- Between 65 and 70, contributions are optional—but still beneficial.
- Old Age Security continues regardless of work status, though high-income retirees may face a clawback (Recovery Tax).
Real-Life Scenario
Michael, age 68, worked for 35 years and delayed CPP until age 67. He now receives $1,250 in CPP, $727.67 in OAS, and $200 in GIS, totaling $2,177.67/month. He benefits from CPP deferral, low-tax pension splitting, and GIS eligibility due to low savings.
The 2025 increase in Canada’s CPP and Old Age Security pensions reflects a significant commitment to seniors’ financial well-being.
With a combined monthly maximum of $2,233.44, retirees can breathe easier amidst inflation and rising costs.
But getting the most out of your benefits requires careful planning—delaying benefits, tracking your records, and leveraging GIS or pension splitting could all make a big difference. If you’re eligible, act wisely, review your options, and ensure you’re not leaving money unclaimed.
FAQs
How do I apply for CPP and OAS?
You can apply online using your My Service Canada Account or submit a paper application.
Can I receive both CPP and OAS?
Yes, if you’re eligible for both based on contributions and residency, you can receive both simultaneously.
When are the next CPP and OAS payments?
The next payment is May 28, 2025, with monthly payments continuing throughout the year.