This week, Canadian seniors will see the latest pension payments roll out, providing much-needed support in the face of rising living costs. On Wednesday, eligible Canadians will receive their Old Age Security (OAS) and Canada Pension Plan (CPP) retirement pension payments.
Both OAS and CPP are monthly, taxable benefits that have seen a steady increase of up to 20% over the last five years to keep pace with inflation.
Old Age Security (OAS) Payments
Every month, the OAS pension is distributed to eligible Canadians aged 65 and older, regardless of employment status. The amount received depends on the individual’s age, duration of residence in Canada as an adult, and income.
These payments are reviewed quarterly—in January, April, July, and October—to reflect changes in the cost of living, as measured by the Consumer Price Index (CPI). For the first quarter of 2025, OAS payments remain unchanged from the previous quarter due to stable CPI figures. However, the payments have increased by 2% compared to last year.
In February, seniors aged 65 to 74 could receive a maximum of $727.67, provided their 2023 annual net world income is less than $142,609. For those aged 75 and older, the maximum monthly payment is set at $800.44, with an income cap of $148,179. Seniors with an income exceeding $86,912 may have to repay part or all of their OAS pension.
Additionally, seniors and their partners may qualify for extra benefits under the OAS program, such as the Guaranteed Income Supplement, Allowance, and Allowance for the Survivor, which are non-taxable.
Canada Pension Plan (CPP) Payments
The CPP retirement pension benefits seniors aged 60 and above who have made at least one valid contribution to the CPP. This taxable benefit replaces part of an individual’s income upon retirement and is paid for the remainder of their life.
The amount of CPP received depends on the age at which a person starts their pension, their contributions, and average earnings. For 2025, the maximum monthly CPP retirement pension is set at $1,433 if started at age 65.
The next round of OAS and CPP payments will be issued on March 27.