In 2025, Canada’s senior citizens are getting some important updates to their monthly retirement payments. The Government of Canada has made changes to the Canada Pension Plan (CPP) and Old Age Security (OAS) to help seniors deal with the rising cost of living.
These changes are meant to give better financial help, especially as things like food, housing, and medicine get more expensive.
In this article, we’ll explain everything about the CPP & OAS changes for 2025 in simple English. You’ll learn about new payment amounts, age rules, eligibility, and tips to get more money.
What Are CPP & OAS?
What is CPP?
The Canada Pension Plan (CPP) gives monthly payments to Canadians who worked and contributed money during their working years. You get this money when you retire, become disabled, or if you’re a survivor of someone who contributed.
What is OAS?
The Old Age Security (OAS) is a government-funded monthly benefit for people aged 65 or older who have lived in Canada for a certain number of years. It’s different from CPP because you don’t need to work to qualify—just live in Canada and meet the age requirement.
Inflation-Based Payment Increases
One of the biggest changes in 2025 is that CPP and OAS payments are going up because of inflation. This means your monthly amount will increase to help you buy the same things even if prices rise.
New Monthly OAS Payments:
- Age 65–74: Now receive $727.67/month (was lower in 2024)
- Age 75+: Now receive $800.44/month
New CPP Retirement Benefit:
- CPP payments are increasing by 2.6% based on inflation
- Helps seniors keep up with rising costs of food, healthcare, rent, etc.
CPP & OAS Updates 2025
| Feature | Details |
|---|---|
| Main Aim | Help seniors with more money in 2025 |
| Programs | CPP and OAS (retirement benefit programs) |
| Authority | Canada Revenue Agency (CRA) |
| Eligibility | Canadians aged 65 and above (some options for 64+) |
| New Payment Mode | Direct Deposit or online account |
| Year of Change | 2025 |
| Government Website | canada.ca |
| OAS Age Split | 65–74 and 75+ have different payment rates |
| OAS Clawback Starts At | $90,997 in yearly income |
CPP Enhancement Fully Starts in 2025
The CPP Enhancement Program, which started in 2019, is now fully in place in 2025. This means seniors who contributed more over the years will now get more money in return.
Example:
- Before: With $60,000 income, yearly CPP = ~$15,000
- After enhancement: Same income now gives ~$20,000/year
This increase gives seniors stronger financial support during retirement.
What Is the OAS Clawback and What’s New?
The OAS clawback is a rule that reduces your OAS payment if you make too much money in a year.
2025 Update:
- Old threshold (2024): $86,912/year
- New threshold (2025): $90,997/year
- For every dollar above that, 15 cents is taken from your OAS
Smart Tip:
- Use income splitting with your spouse
- Delay withdrawing from RRSPs
- Use a TFSA, which does not count as taxable income
Delaying CPP & OAS Can Increase Your Money
You can choose to delay your CPP or OAS payments. The longer you wait (up to age 70), the more money you will get every month.
How Much More?
- CPP: Grows by 8.4% every year after age 65
- OAS: Grows by 7.2% every year after age 65
Example:
If your CPP is $1,000 at 65, waiting till 70 gives you $1,420/month
If your OAS is $727 at 65, waiting till 70 gives you around $990/month
2025 CPP & OAS Changes
- Payments are higher than last year
- Eligibility age remains 65+
- You can delay benefits to earn more
- New clawback limit helps more people keep full payments
- The CPP Enhancement means higher payouts for workers who contributed more
- You get payments via direct deposit or your CRA MyAccount
The 2025 updates to CPP and OAS bring huge benefits to Canadian seniors. With higher payments, inflation adjustments, and smarter ways to delay and increase your monthly income, these changes are made to support older people in living a more secure and comfortable life.
Whether you’re already retired or planning your retirement soon, knowing these updates can help you make better financial decisions and get the most from your benefits.
Stay updated by checking the official CRA website, track your payments with direct deposit, and don’t forget: small planning now can lead to big savings later!
FAQs
What is the maximum CPP payment in 2025?
The maximum monthly CPP payment in 2025 is around $1,433 for new retirees.
What is the new monthly OAS payment for people aged 75+?
They will receive up to $800.44 per month in 2025.
When does GIS automatic enrollment begin?
Starting in 2025, eligible seniors will be automatically enrolled in GIS.