Canada’s public pension system plays a key role in retirement income for millions of Canadians. In 2025, there’s talk of a potential $400 boost to Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. While this increase has not been officially confirmed, retirees should still know what it could mean, how CPP and OAS work, and how to prepare for maximum benefit.
Here’s a breakdown of what’s currently known and how to get the most from Canada’s retirement programs.
Overview
| Topic | Details |
|---|---|
| Proposed Increase | $400 annual increase for eligible CPP and OAS recipients (unconfirmed) |
| CPP (Max Monthly) | $1,364.60 in 2025; average is $815.00 |
| OAS (Max Monthly) | $727.67 (65–74), $800.44 (75+) |
| CPP Eligibility | Age 60+, with work contributions |
| OAS Eligibility | Age 65+, with 10+ years living in Canada after age 18 |
| Source | Canada.ca |
What Is the CPP?
The Canada Pension Plan is a mandatory government program that provides monthly retirement income. Employees and employers contribute during working years, and payments begin at age 60 or later, depending on your choice.
Key CPP Facts
- Eligibility: Age 60 or older with at least one valid contribution
- Contribution Rate: In 2025, employees pay 5.95% of pensionable earnings, matched by employers
- Self-employed: Pay both shares (11.9%)
- Payment: The maximum monthly CPP benefit at age 65 is $1,364.60 in 2025. Most people receive around $815.00
What Is the OAS?
Old Age Security is a government-funded monthly payment for Canadians 65 and older. You don’t need to work or contribute to receive it—eligibility is based on age and residency.
Key OAS Details
- Eligibility: 65+ years old and lived in Canada for 10+ years after age 18
- Payment:
- Ages 65–74: Up to $727.67/month
- Ages 75+: Up to $800.44/month
- Inflation Adjustment: OAS is reviewed and adjusted every quarter
- Clawback: Starts at $90,997 and phases out fully at $148,605 of net annual income
Is the $400 Increase Official?
As of now, there is no confirmed $400 increase to CPP and OAS payments for 2025. However, there are a few factors that make the discussion relevant:
- Annual Adjustments
CPP payments rise each January based on the Consumer Price Index (CPI). In 2025, benefits increased by 4.4% compared to 2024. - Quarterly Adjustments for OAS
OAS payments change every three months to reflect inflation. Any increases are automatic and based on cost-of-living changes. - Government Announcements
If a $400 boost becomes reality, it will be officially announced and reflected on Canada.ca or through Service Canada.
How to Check Your CPP and OAS Benefits
To know exactly what you’re entitled to and when, follow these steps:
- Log into My Service Canada Account
Create or sign into your account to access personalized information. - Review Your Contribution History
Check your lifetime CPP contributions to estimate your retirement benefit. - Check OAS Eligibility
Ensure you meet the 10-year residency requirement and understand how your income affects payment amounts. - Use Government Tools
Try tools like the CPP Contributions Estimator or Retirement Income Calculator to forecast your pension income.
How to Maximize Your Pension Benefits
Even without a confirmed $400 increase, there are ways to improve your CPP and OAS income.
Tips for CPP
- Delay Your Claim
Starting CPP at age 70 instead of 65 boosts your payments by up to 42%. - Contribute More
Your benefit is based on your earnings and contributions. High-income years result in higher CPP payments.
Tips for OAS
- Defer Until Age 70
Delaying OAS increases your monthly payment by 7.2% per year. - Avoid the Clawback
Use income-splitting or draw from a Tax-Free Savings Account (TFSA) to stay under the clawback threshold.
Planning Tools and Resources
Visit Canada.ca and explore calculators like:
- CPP Contributions Estimator
- Retirement Income Calculator
- OAS Clawback Estimator
Financial Planners
A certified advisor can help create a tax-efficient retirement plan that aligns with your CPP and OAS income.
Community Services
Many community centers and nonprofits offer free retirement workshops. These sessions are especially helpful for low-income seniors and newcomers.
Whether or not the $400 increase becomes official in 2025, Canada’s public pension system is designed to adjust with inflation and provide secure retirement income. Staying informed, making strategic decisions about when to claim benefits, and managing your income can help you make the most of CPP and OAS.
FAQs
Is the $400 pension increase confirmed?
No, it’s still under discussion and not officially announced.
What is the max CPP in 2025?
It’s $1,364.60 per month for new recipients at age 65.
How often is OAS adjusted?
OAS is adjusted quarterly based on the cost of living.
Can I delay CPP for more money?
Yes, delaying to age 70 increases CPP by up to 42%.
When does OAS clawback start?
Clawback starts at $90,997 of annual net income.
