Canada’s $2,900 CPP Increase – Check June 2025 Pension Plan Payment Dates and Key Facts

If you’ve seen headlines or social media buzz about a “$2,900 CPP increase,” you might be wondering whether your monthly Canada Pension Plan payment is about to triple. The truth? There’s no single $2,900 boost to CPP itself. Instead, the figure reflects the combined total that some seniors could receive monthly by qualifying for CPP, Old Age Security (OAS), and the Guaranteed Income Supplement (GIS).

In this article, we’ll unpack the facts, break down how these benefits work together, cover the June 2025 payment dates, and share tips on how to get the most out of your retirement income.

Overview

The $2,900 figure is not one benefit. It’s the estimated combined monthly total of three major federal retirement support programs. Here’s a quick summary:

Each program plays a different role in helping seniors meet their monthly living expenses. Let’s look at each one more closely.

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Meaning

The “$2,900 CPP increase” is really a mix of benefits that, when combined, could add up to $2,900 per month. To receive the full amount, a senior must:

• Be over age 75
• Have made maximum CPP contributions
• Have a low enough income to qualify for GIS

CPP

The Canada Pension Plan is a retirement income benefit funded by contributions you make while working. It’s not automatic—you need to apply.

CPP Eligibility

To qualify for CPP, you must:

• Be at least 60 years old
• Have made at least one valid contribution to CPP during your working years

How CPP Is Calculated

Your monthly CPP payment depends on:

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• Your average annual income
• How long and how much you contributed to CPP
• The age you start collecting

The average CPP payment for new retirees in 2025 is about $899.67 per month, but if you maximized contributions and start at age 65, you could receive up to $1,433.

June 2025 Payment Date

CPP will be paid on Friday, June 28, 2025.

OAS

Old Age Security is a federal pension for seniors 65 and older. Unlike CPP, you don’t need a work history to qualify—just Canadian residency.

• Ages 65–74: up to $727.67/month
• Ages 75+: up to $800.44/month
• Paid monthly, often alongside CPP

OAS is automatically enrolled for most people, but it’s good to confirm through your My Service Canada Account.

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GIS

The Guaranteed Income Supplement is a non-taxable benefit added to OAS for seniors with low income. It can increase your monthly income by several hundred dollars.

To receive GIS, you must:

• Already be receiving OAS
• Have income below the annual threshold (varies by marital status)
• File your tax return every year

Enhancement

The CPP enhancement is an ongoing government plan to increase retirement income for future seniors. It raises:

• Contribution rates
• The replacement rate from 25% to 33.33% of pensionable earnings
• The max earnings cap, which in 2025 is $71,300, with a second tier up to $81,200

This means younger Canadians who contribute at these higher levels will eventually receive larger CPP payments.

How to Apply

Here’s how to apply for CPP and GIS:

Step 1

If you don’t have one, register at Canada.ca. This is where you can manage all your retirement benefits.

Step 2

You can start CPP at any time between ages 60 and 70. Delaying your start increases your payment.

Step 3

Apply online or by mailing a paper form.

Step 4

It usually takes 7 to 14 weeks. Once approved, you’ll get your first payment and confirmation letter.

Tips

Want to increase your monthly retirement income? Here are a few practical ideas:

• Delay CPP past age 65 to increase your payment by 0.7% for every month delayed
• Review your TFSA or RRSP withdrawals to reduce taxable income and avoid losing GIS
• Update personal info in your Service Canada account so you don’t miss out on automatic enrollments

Mistakes

Don’t fall into these common traps:

• Assuming CPP is automatic—you must apply
• Starting CPP too early—you’ll lock in lower payments
• Ignoring GIS—you could be eligible even if you have small savings
• Not checking your contribution history—it could affect your CPP estimate

Knowing the full picture of your retirement benefits is the best way to plan for financial stability. The $2,900 number is real—but only if you qualify for multiple programs and maximize their potential.

FAQs