1,550 OAS/CPP Payments Start This April: April 2025 is fast approaching, and it could be an important month for Canadian seniors. This month marks the start of combined payments under Old Age Security (OAS) and the Canada Pension Plan (CPP), which could amount to up to $1,550 per month for eligible beneficiaries. These pension plans are a vital income source for retirees, so it’s important to know if you’re eligible and when you’ll receive a payment.
$1,550 OAS/CPP payment: What’s the plan?
Combined payments under Old Age Security (OAS) and the Canada Pension Plan (CPP) in April 2025 could provide up to $1,550 per month to eligible seniors. However, this amount depends on your age and lifetime contributions.
If you’re recently retired or about to be, it’s important to log into My Service Canada Account, review your pension details, and create a financial plan. Applying on time and having the required documents complete can help you get the most out of these schemes.
Complete payment details
| Pension Plan | Age Group | Maximum Monthly Payment | Annual Income Threshold | Payment Date |
|---|---|---|---|---|
| Old Age Security (OAS) | 65–74 | $727.67 | $86,912 (clawback starts) | April 28, 2025 |
| Old Age Security (OAS) | 75+ | $800.44 | $86,912 (clawback starts) | April 28, 2025 |
| Canada Pension Plan (CPP) | 65 (standard) | $1,433.00 | N/A | April 28, 2025 |
How does the combined payment of OAS and CPP work?
If you are aged 65 to 74 years, the maximum you can get from OAS and CPP is around $1,550 per month. Let’s understand this in detail:
- OAS payment:
- For 65 to 74 years: $727.67 per month
- For above 75 years: $800.44 per month
- CPP payment:
- This depends entirely on the contributions made during your tenure.
- Maximum payment: $1,433 per month
- Average payment: $808.14 per month
It is important to note that very few people get the full maximum payment of CPP, as it depends on their lifetime income and contributions.
What is Old Age Security (OAS)?
Introduction to OAS
Old Age Security (OAS) is a government pension plan offered to most Canadians aged 65 years or older. It is a non-contributory plan, meaning you do not have to make contributions during the term.
OAS Eligibility
- Must be 65 years of age or older.
- Must have lived in Canada for at least 10 years after turning 18.
- Must be a Canadian citizen or legal resident.
- If you live abroad, must have a Canadian residency period of at least 20 years.
OAS Payment Amount (2025)
- 65 to 74 years: $727.67 per month
- 75+ years: $800.44 per month
OAS Clawback (Recovery Tax)
If your income is more than $86,912, your OAS payment may be reduced. Full payout threshold:
- 65-74 years: $142,609
- 75+ years: $148,179
What is the Canada Pension Plan (CPP)?
Introduction to CPP
The Canada Pension Plan (CPP) is a contributory pension plan that allows contributions to be made during retirement and payouts based on those contributions once you retire.
CPP eligibility
- Must be 60 years of age or older.
- Make at least one valid contribution.
CPP payout amount (2025)
- Maximum payout (upon retirement at age 65): $1,433 per month
- Average new payout: About $808.14 per month
Options to start CPP early or late
- Start at age 60: Payments decrease by 0.6% per month.
- Delay until age 70: Payments increase by 0.7% per month.
Payment Date and Application Process
Payment Date
The next payment for OAS and CPP will be made on April 28, 2025. These payments are usually issued the last week of each month. If you choose direct deposit, the payment will arrive in your account on time and securely.
How to apply for OAS and CPP?
OAS Application Process
- If you are eligible, you may be automatically enrolled.
- If enrollment did not happen automatically, you can:
- Apply online through My Service Canada Account.
- Or, submit a paper form.
CPP Application Process
- CPP is not automatically available—you must apply for it.
- Application Options:
- Apply online through My Service Canada Account.
- Or, complete and submit a paper form.
What is a non-taxable GIS benefit?
The non-taxable Guaranteed Income Supplement (GIS) is for seniors with low incomes who are receiving OAS.
GIS Eligibility
- Receiving OAS is mandatory.
- The income limit for single individuals in 2025 is set at approximately $21,624.
- Just like OAS, GIS will be paid on April 28, 2025.
Conclusion
Pension plans like OAS and CPP ensure a secure financial future for seniors in Canada. If you are eligible, it is important that you apply on time and take help from My Service Canada Account to receive your payments smoothly. The $1,550 OAS/CPP payments starting in April 2025 can help balance your retirement life financially.
FAQs On 1,550 OAS/CPP Payments Start This April
Q. What day will OAS and CPP payments be deposited?
A. OAS and CPP payments will be issued on April 28, 2025.
Q. Can everyone receive the maximum of $1,433 of CPP?
A. No, CPP payments depend on your total income and contributions over the course of your tenure. The average CPP payment is about $808.14 per month.
Q. Can you receive both OAS and GIS?
A. Yes, if your annual income is less than $21,624, you may be eligible for GIS.