Canada’s Retirement Pension Rises to $1,364 – See If You’re Receiving the Increase

If you’re already retired or planning to retire soon in Canada, there’s big news. As of 2025, retirement benefits have increased, giving seniors more monthly income to help manage rising costs.

The Canada Pension Plan (CPP) now pays up to $1,433 per month, and Old Age Security (OAS) offers up to $800.44 for those aged 75 or older. Combined, eligible seniors can receive up to $2,233.44 monthly from federal retirement programs.

With inflation increasing the cost of housing, groceries, transportation, and healthcare, these adjustments come at a critical time. But knowing how these programs work—and how to take full advantage of them—is the key to building a stable retirement.

This complete guide breaks it all down, from eligibility and payment dates to tax tips and strategies for combining benefits like the Guaranteed Income Supplement (GIS).

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Whether you’re already retired or planning ahead, this info can help you make the most of every benefit available.

Overview

Here’s a snapshot of Canada’s 2025 retirement pension updates:

CPP

The Canada Pension Plan (CPP) is funded by payroll contributions during your working years. What you get later depends on how much you contributed and when you start collecting it.

In 2025, the maximum monthly CPP payment at age 65 is $1,433. Most Canadians don’t get the maximum—on average, people receive about $808 a month.

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What affects your CPP?

• Your income and contributions: Higher, steady earnings mean higher contributions.
• Your work history: The longer you contribute, the better.
• Your start age: You can take CPP from age 60 to 70. Starting early reduces your payment. Delaying increases it by about 0.7% per month after age 65.

Waiting until age 70 can boost your CPP by more than 40 percent. If you’re healthy and have other savings, it could be worth it.

OAS

Old Age Security (OAS) is different from CPP. You don’t need to work or contribute to get it—it’s based on your age and how long you’ve lived 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).

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Who qualifies?

• You must be 65 or older
• You must have lived in Canada for at least 10 years after age 18 for partial benefits
• For full OAS, 40 years of residency is generally required

If you live outside Canada now, you may still qualify depending on your history and any social security agreements Canada has with your country.

Dates

Both CPP and OAS are paid monthly. Here are the 2025 payment dates still to come:

• May 28
• June 26
• July 29
• August 27
• September 25
• October 29
• November 26
• December 22

Use your My Service Canada Account to update your banking details and avoid any delays.

Eligibility

To qualify for CPP, you must:

• Be at least 60 years old
• Have made at least one valid CPP contribution

OAS

To qualify for OAS, you must:

• Be at least 65 years old
• Have lived in Canada for 10 or more years after age 18

To receive the full benefit, you’ll usually need to have lived in Canada for 40 years after turning 18.

If you’ve lived or worked in other countries, international agreements may allow you to still qualify.

Combined Benefits

In 2025, if you’re 75 or older and receive the maximum of both CPP and OAS, you could collect $2,233.44 per month—or $26,801.28 per year.

But most people don’t receive the maximum. Even with partial benefits, these programs create a strong foundation for retirement.

Example

Helen is 70. She worked full-time for 30 years, then stayed home for 10 years to raise her kids. She gets $970 per month from CPP and $800.44 from OAS, giving her $1,770.44 monthly. Since she has modest savings and a low income, she also receives some GIS.

Tips

Delaying CPP until age 70 increases it by over 40 percent. OAS increases by 0.6% per month you wait after 65—up to 36% if you wait until 70.

Check Your Contribution Record

Use your My Service Canada Account to view your CPP history. Make sure it’s correct and report any missing contributions.

Apply for GIS

If you have low income and get OAS, you may also qualify for the Guaranteed Income Supplement. In 2025, it can add up to $1,065 per month for single seniors.

Use Pension Sharing

If your spouse has a much higher CPP, sharing it can lower your overall taxes without reducing your income.

Watch the Clawback

OAS begins to be clawed back when your income exceeds $90,997. To reduce clawbacks, consider:

• Splitting income with a spouse
• Withdrawing from TFSAs instead of RRSPs
• Talking to a tax advisor for tailored advice

Still Working?

If you keep working past 65 and take CPP early, you must keep contributing to CPP until 65. These extra contributions earn you Post-Retirement Benefits, which boost your monthly CPP.

Between ages 65 and 70, contributing is optional but can increase your payments further.

OAS is not affected by work income, but if your total income is too high, you may face the OAS Recovery Tax.

What Experts Say

Clara Lee, a certified financial planner with RetireSmart Canada, says, “CPP and OAS are only one part of the retirement income puzzle. You need to factor in RRSPs, TFSAs, workplace pensions, and the GIS.”

James Murray, a CPA and retirement planner in Ottawa, adds, “Delaying your benefits can pay off big—especially if you expect to live into your 80s or 90s. Don’t just take it because you can. Think about the long-term impact.”

FAQs