There will be a big change in Canada’s CPP and OAS pension in 2025 – know how to get more benefits!
With the arrival of 2025, senior citizens of Canada have become alert about the changes in CPP (Canada Pension Plan) and OAS (Old Age Security) payments. These government pension schemes are very important to make life easier after retirement. In view of rising inflation, the government has decided to increase the pension amount.
If you are already taking a pension or planning for retirement, then it is very important for you to know these changes. Let us know what changes will happen in 2025, who will be eligible, and how you can get the most out of your pension.
Key points:
| Aspect | Details |
|---|---|
| CPP Increase | ~3% based on Consumer Price Index (CPI) |
| OAS Increase | Adjusted quarterly in 2025 based on CPI |
| CPP Eligibility | Based on valid lifetime contributions |
| OAS Eligibility | Based on 10–40 years of residency in Canada after age 18 |
| Apply for CPP | Up to 12 months before your desired start date |
| OAS Enrollment | Automatic for most; manual if not notified |
| Maximize Benefits | Delay claiming up to age 70 for higher monthly payments |
What is CPP?
The CPP is a taxable monthly payment given to those who have contributed to this scheme during their job. It includes contributions from both the employee and the employer.
- The higher the contribution, the higher the pension
- The later you start receiving a pension (after 65), the higher the benefit
- Payments are based on your average earnings
The CPP is expected to increase by 3% in 2025.
Example: If someone currently earns $1,200 per month, this will increase to approximately $1,236.
What is OAS?
The OAS pension is a non-contribution-based pension funded by taxes to all eligible citizens. It does not require a work history but does require a period of residence in Canada.
- Full OAS is available after 40 years of residence in Canada
- Partial OAS can be available after 10 years of residence
OAS is adjusted for inflation every quarter (January, April, July, October).
Example: If the CPI increases by 2% in the first quarter, the OAS increases by the same amount in the second quarter.
Eligibility:
For CPP:
- You must be 60 years old
- Must have made at least one contribution
- You can apply 12 months before payments start
For OAS:
- You must be at least 65 years old
- Must have lived in Canada for at least 10 years after turning 18
- 40 years of residency required for full OAS
How to apply?
For CPP:
- Online: From My Service Canada account
- By mail: By sending in a CPP application form
For OAS:
- Automatic enrolment is available in most cases
- If not, apply 6 months before your 65th birthday
Tips to maximize benefits:
Delay payments:
- CPP receives 0.7% more per month after age 65, and OAS receives 0.6% more. If you wait until 70, you can get up to 42% more pension.
Check your records:
- Be sure to check your CPP contribution report
- Make sure you report the number of years you spent in Canada for OAS
Additional support:
If you have a low income, you may also be eligible for the Guaranteed Income Supplement (GIS). This adds additional support to the OAS.
Conclusion:
The CPP and OAS increases in 2025 aren’t just numbers—they’re a welcome relief for retirees. As inflation rises, these changes are necessary to ensure seniors maintain their purchasing power.
If you’re close to retirement or already receiving benefits, it’s time to update your plan. Check your records, apply on time, and use all the resources available wisely.
FAQs:
How much will the CPP increase be?
Expect up to 3%, adjusted for inflation.
When is OAS updated?
Four times a year – in January, April, July and October.
Can I delay CPP and OAS?
Yes, and doing so increases your monthly payment.
Is OAS based on work history?
No, it is based only on your residence in Canada.
How to apply?
From the My Service Canada website or by sending in a form via post.