Canada’s seniors are seeing a welcomed boost in their retirement income in 2025, with the Canada Pension Plan (CPP) maximum benefit increasing to $1,364.60 per month.
This move reflects the federal government’s continued efforts to keep pensions aligned with inflation and rising living costs, helping retirees better manage daily expenses such as housing, groceries, and healthcare.
Let’s explore the new CPP rates, eligibility rules, payment dates, and additional strategies to boost your income in retirement.
CPP and OAS 2025: Updated Payment Summary
| Benefit Type | Maximum Monthly Payment (2025) |
|---|---|
| Canada Pension Plan (CPP) | $1,364.60 |
| Old Age Security (OAS) – age 75+ | $800.44 |
| Combined Maximum (CPP + OAS) | $2,165.04 |
While these are the maximum possible payouts, most seniors receive less than the full amount due to gaps in contribution years or work history.
Who Is Eligible for the Full CPP Amount?
The Canada Pension Plan is a contributory program, meaning what you receive depends entirely on how much you contributed and for how long. To receive the maximum CPP benefit, you must:
- Have contributed to CPP for at least 39–40 years at or above the yearly maximum pensionable earnings.
- Start receiving CPP at age 65 to get the standard rate (or delay up to age 70 for increased benefits).
CPP Flexibility by Age:
- Start as early as age 60 with reduced benefits (by 0.6% per month early).
- Delay up to age 70 and gain an increase of 0.7% per month delayed, which can result in a 42% boost by age 70.
Old Age Security (OAS): A Parallel Support
Unlike CPP, OAS does not require employment history. Instead, it’s based on:
- Age (65+)
- Years of residency in Canada (minimum 10 years post-age 18)
For 2025:
- Seniors aged 65–74 can receive up to $713.34/month
- Seniors aged 75+ can receive up to $800.44/month
These figures are adjusted quarterly based on the Consumer Price Index (CPI).
CPP and OAS 2025 Payment Dates
Make sure you keep your direct deposit information updated on your My Service Canada Account to avoid delays.
| Month | Payment Date |
|---|---|
| July | July 29, 2025 |
| August | August 28, 2025 |
| September | September 26, 2025 |
| October | October 29, 2025 |
| November | November 27, 2025 |
| December | December 23, 2025 |
Boost Your Income with GIS (Guaranteed Income Supplement)
For seniors receiving OAS with low or modest incomes, GIS offers an added financial layer:
| Status | Maximum GIS (Monthly) |
|---|---|
| Single senior | $1,065.47 |
| Each spouse (both on OAS) | $641.35 |
Note: GIS is income-tested. If your other income exceeds a certain threshold, your GIS could be reduced or eliminated.
Ways to Maximize Your CPP & OAS
- Delay Benefits: Waiting until age 70 increases CPP and OAS significantly.
- Pension Income Splitting: Share pension income with a lower-income spouse to reduce taxes.
- Post-Retirement CPP Contributions: Continue contributing if you work after 60 to increase benefits.
- Stay Below the OAS Clawback Threshold: For 2025, the threshold is $90,997.
Real-Life Example
David, aged 70, contributed consistently for 40 years and delayed taking CPP and OAS until 70. He now receives:
- CPP: $1,364.60
- OAS: $800.44
- Total: $2,165.04/month
If David qualifies for GIS, he could receive an additional $1,065.47, pushing his monthly income above $3,200 — a solid financial foundation for his retirement years.
The CPP maximum benefit increase to $1,364.60 in 2025 offers seniors across Canada an opportunity to better handle their retirement finances.
While not everyone qualifies for the full amount, smart planning, timely claiming, and understanding additional supplements like GIS can go a long way in securing a stable retirement.
FAQs
What is the average CPP payment in 2025?
The average monthly CPP payment is approximately $808, depending on your contribution history.
How do I qualify for the full CPP amount?
You must have contributed at the maximum level for 39–40 years and start collecting CPP at age 65.
Can I receive both CPP and OAS at the same time?
Yes, eligible individuals can receive both CPP and OAS, plus GIS if they meet income criteria.