In 2025, Canada is making important changes to help senior citizens who depend on monthly payments like Old Age Security (OAS) and the Canada Pension Plan (CPP). These changes are made by the Canada Revenue Agency (CRA) to ensure older people have enough money to live, even as prices go up.
Let’s understand what’s new in OAS and CPP for 2025, including payment amounts, age rules, and how you can increase your pension income.
What is OAS and CPP?
- OAS (Old Age Security) is a monthly payment for people aged 65 and above who have lived in Canada long enough.
- CPP (Canada Pension Plan) is a retirement savings plan where workers and employers contribute during working years. It pays you after retirement or if you’re disabled.
These programs are very important for people after retirement.
OAS & CPP 2025 Key Changes
Here is a quick look at the new updates for 2025:
| Feature | 2024 | 2025 |
|---|---|---|
| OAS (age 65–74) | $707.68 | $727.67 |
| OAS (age 75+) | $784.67 | $800.44 |
| CPP Increase | 2.0% | 2.6% |
| OAS Clawback Limit | $86,912 | $90,997 |
| CPP Max Payout (new retirees) | $1,306 | $1,433 |
| OAS Delay Bonus (age 70) | +36% | Same |
| CPP Delay Bonus (age 70) | +42% | Same |
These changes will help seniors keep up with inflation and get more financial support.
CPP Enhancement Program – What’s New?
- In 2025, the final phase of the CPP Enhancement is starting.
- It increases the percentage of your old salary that CPP pays after you retire—from 25% to 33.33%.
- If you earn $60,000 per year, your CPP payout could go from $15,000 to $20,000 per year.
This means more monthly income in your older years, if you contributed more while working.
OAS Clawback Limit Increased
If you earn more than the limit, the government reduces your OAS. This is called the OAS Clawback.
- In 2025, this income limit is now $90,997.
- For every extra dollar you earn above this, your OAS is reduced by $0.15.
- You can avoid clawbacks by income splitting with your spouse or delaying RRSP withdrawals.
Delaying OAS and CPP – Bigger Payouts
If you wait to start your OAS or CPP, you can get more money every month.
- For each year after 65, CPP increases by 8.4%, and OAS increases by 7.2%.
- By waiting until age 70, your:
- CPP can go up by 42%
- OAS can go up by 36%
Example:
If you get $1,000/month CPP at age 65, waiting until 70 can raise it to $1,420/month. That’s a big jump!
OAS & CPP 2025
These benefit changes help retired Canadians beat rising prices and live with dignity. Whether you’re retired or planning for the future, knowing these changes helps you make smarter money decisions. Think about:
- When to start your benefits
- How much you’ll get
- How to avoid losing money due to the clawback
Stay updated on the CRA official website to get accurate information.
In 2025, the Canadian government is taking solid steps to support senior citizens with improved OAS and CPP benefits. These updates help cover basic costs like food, rent, and health care.
By understanding the changes and planning well, seniors can get more money and feel more secure in their retirement. The key is to stay informed, avoid clawbacks, and choose the right age to start collecting benefits.
FAQs
What is the highest CPP payment for 2025?
The maximum CPP monthly payout for new retirees in 2025 is $1,433.
How much OAS will seniors over 75 get in 2025?
Seniors aged 75 or older will receive $800.44 per month in 2025.
When does GIS automatic enrollment start?
The automatic enrollment for GIS begins in 2025 for seniors who are eligible.