Canadian seniors are receiving a welcomed financial lift in 2025 as the federal government has approved substantial increases to Old Age Security (OAS) and the Canada Pension Plan (CPP).
These updated payments aim to counteract inflation and rising living costs, potentially offering retirees a combined monthly benefit of up to $4,000—one of the largest boosts in recent history.
CPP 2025: Monthly Maximum Payment Rises to $2,800
The Canada Pension Plan is a contributory retirement benefit funded through payroll deductions. In 2025, the maximum monthly CPP payment for new retirees at age 65 is now $2,800, a major increase from the previous year’s average of around $1,364.
This adjustment includes inflation indexing and continued implementation of the CPP Enhancement Plan introduced in 2019.
Who Can Receive the Full $2,800 CPP?
To qualify for the maximum benefit, retirees must:
- Have contributed to CPP for at least 39 years
- Made maximum annual contributions throughout their working life
- Start receiving CPP at age 65 or later
While not all retirees will qualify for the full amount, most will still benefit from increased payments due to expanded earnings coverage.
OAS 2025: Payment Boost to $1,200 in Select Scenarios
The Old Age Security program provides a monthly pension to Canadians aged 65 and older. The base Old Age Security amounts for 2025 are as follows:
| Age Group | Standard OAS Payment | Annual Total |
|---|---|---|
| 65–74 years | $713.34 | $8,560.08 |
| 75+ years | $784.67 | $9,416.04 |
However, some low-income seniors may receive up to $1,200 per month when Old Age Security is combined with the Guaranteed Income Supplement (GIS).
GIS 2025: Maximum Monthly Amounts
| Status | GIS (Max) | OAS + GIS Total |
|---|---|---|
| Single senior | $665.00 | $1,448.34 |
| Married, both on OAS | $553.00 | $1,266.34 |
| Married, one on OAS only | $665.00 | $1,448.34 |
These figures highlight how seniors receiving full Old Age Security and GIS can cross the $1,200 monthly threshold, especially if they meet all eligibility criteria for low-income support.
Combined Monthly Benefit: Up to $4,000 for Eligible Seniors
For seniors eligible for maximum CPP and maximum Old Age Security + GIS, the combined monthly income could exceed $4,000.
Estimated Total Benefit Breakdown
| Benefit Type | Monthly Amount | Annual Amount |
|---|---|---|
| CPP | $2,800.00 | $33,600.00 |
| OAS + GIS | $1,200.00+ | $14,400.00+ |
| Total | $4,000.00+ | $48,000.00+ |
Keep in mind, not every senior will qualify for the full amount—benefits vary based on work history, age, and income.
What’s Behind the Boost?
These increases are part of the government’s ongoing efforts to ensure financial security for seniors:
- Inflation Indexing (COLA): Both CPP and Old Age Security are adjusted annually based on the Consumer Price Index.
- CPP Enhancement: Continued rollout of enhancements started in 2019 to expand future retirement benefits.
- GIS Support: Targeted increases in GIS payments to protect low-income seniors.
Important Tax Considerations
- CPP and Old Age Security are taxable and could affect your total taxable income.
- Old Age Security Clawback begins if annual income exceeds $90,997 in 2025.
- GIS is non-taxable but income-tested—eligibility is reviewed annually.
To avoid surprises, seniors should consider updating their tax withholding preferences for government benefits.
The newly approved CPP and Old Age Security increases offer substantial support to Canadian seniors, with potential total payments reaching $4,000 per month for those who qualify.
These enhancements not only address the rising cost of living but also strengthen the retirement safety net. Seniors are encouraged to review their eligibility and adjust their financial planning accordingly.
FAQs
Who qualifies for the full $2,800 CPP in 2025?
You must have contributed to CPP for at least 39 years with maximum contributions annually and begin collecting at age 65 or later.
Can I get both OAS and GIS together?
Yes, if your income is below the threshold, you may receive GIS in addition to OAS, potentially bringing your monthly benefit above $1,200.
Are OAS and CPP payments taxable?
Yes, both are taxable. However, GIS is not. Seniors should monitor their annual income to avoid the OAS clawback.