In 2025, Canada’s retirement pension programs have undergone an important update, offering more financial support for seniors.
If you’re nearing retirement or already receiving benefits, it’s crucial to understand the recent changes to the Canada Pension Plan (CPP) and Old Age Security (OAS) programs.
These increases are designed to help retirees manage the rising costs of living, including housing, groceries, healthcare, and transportation.
This article breaks down the details of these updates and provides information on eligibility, payment dates, and strategies to maximize your benefits.
Overview of Canada’s 2025 Retirement Pension Increase
Here is a quick overview of the 2025 pension adjustments:
| Feature | Details |
|---|---|
| Max CPP Monthly Benefit | $1,433.00 |
| Average CPP Monthly Benefit | $808.14 |
| Max OAS (75+) | $800.44 |
| 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 | May 28, 2025 |
Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) is one of the most important pillars of Canada’s retirement income system. It is funded through payroll contributions throughout your working life. The amount you receive from CPP depends on how much you contributed and when you start collecting your pension.
As of 2025, the maximum monthly CPP payment at age 65 is $1,433. On average, however, most Canadians receive approximately $808 per month.
Factors Affecting Your CPP:
- Your income and contributions: Higher, steady earnings typically result in higher contributions.
- Your work history: The longer you contribute, the better your CPP benefit.
- Your start age: You can start receiving CPP benefits as early as age 60. However, delaying your start until age 70 can increase your monthly benefit by 0.7% for each month after age 65, resulting in a more substantial increase (over 40%).
Old Age Security (OAS)
Old Age Security (OAS) is different from CPP. It is a non-contributory benefit, meaning you don’t need to have worked or contributed to receive OAS. The benefit is determined based on your age and the length of your residency in Canada.
In 2025, OAS pays:
- $727.67 per month for those aged 65 to 74
- $800.44 per month for those aged 75 and older
These amounts are reviewed every three months and adjusted for inflation using the Consumer Price Index (CPI).
Eligibility for CPP and OAS
To qualify for CPP:
- You must be at least 60 years old
- You must have made at least one valid CPP contribution
To qualify for OAS:
- You must be at least 65 years old
- You must have lived in Canada for at least 10 years after turning 18 for partial benefits
- To receive full OAS, you need to have lived in Canada for 40 years after age 18
If you live outside Canada, you may still qualify for OAS depending on your residency history and any social security agreements Canada has with your country.
Combined Benefits
In 2025, if you’re 75 or older and receive the maximum of both CPP and OAS, you could receive up to $2,233.44 per month or $26,801.28 annually.
However, most people do not receive the maximum. Even with partial benefits, the combined CPP and OAS programs offer a solid foundation for your retirement income.
Maximizing Your Benefits
- Delaying Your CPP: By delaying your CPP payments until age 70, you can increase your monthly benefit by more than 40%. Consider waiting if you are healthy and have other savings.
- Guaranteed Income Supplement (GIS): If your income is low and you are receiving OAS, you may qualify for GIS. In 2025, GIS can add up to $1,065 per month for single seniors.
- Pension Sharing: If your spouse has a much higher CPP than you, pension sharing may reduce overall taxes without reducing your income.
Important Payment Dates for 2025
Both CPP and OAS are paid monthly. The upcoming payment dates for 2025 are:
- May 28, 2025
- June 26, 2025
- July 29, 2025
- August 27, 2025
- September 25, 2025
- October 29, 2025
- November 26, 2025
- December 22, 2025
Make sure to update your banking details via your My Service Canada Account to avoid delays.
With the rise in Canada’s retirement pensions in 2025, seniors can expect better financial support as they navigate retirement.
By understanding CPP and OAS, along with strategies like delaying CPP for higher payments and utilizing GIS, you can make the most of these benefits. Stay informed, ensure your eligibility, and take action now to secure a stable financial future.
FAQs
How can I increase my CPP benefit?
By delaying your CPP payments until age 70, you can increase your monthly benefit by over 40%.
What is the maximum OAS amount in 2025?
For those aged 75 or older, the maximum OAS payment is $800.44 per month.
Can I still qualify for OAS if I live outside Canada?
Yes, you may still qualify based on your residency history and any social security agreements Canada has with your country.