Canadian retirees have reason to celebrate in 2025. With the latest increases in the Canada Pension Plan (CPP) and Old Age Security (OAS), many can now receive combined monthly payments reaching $2,200 to $2,400—and when the Guaranteed Income Supplement (GIS) is factored in, that number can climb to $3,200 or more.
This boost provides much-needed financial relief for seniors navigating rising living costs in retirement.
Here’s everything you need to know about CPP and OAS payouts in 2025, how to qualify, and how to maximize your monthly income.
Canada Pension Plan (CPP) in 2025
The Canada Pension Plan continues to rise due to scheduled enhancements. In 2025:
- Maximum monthly CPP payment: $1,433
- Average new CPP recipient: $800–$850 per month
- Eligibility: Must have contributed the maximum amount to CPP for at least 39–40 years to receive the full benefit
- Early or delayed retirement: You can begin collecting CPP as early as age 60 with reductions, or delay up to age 70 to receive a higher payment (0.7% increase per month delayed)
Old Age Security (OAS) in 2025
OAS is a government-funded monthly benefit for Canadians aged 65 and older. It’s adjusted quarterly for inflation and increases with age.
- Ages 65 to 74: Up to $727.67/month
- Ages 75 and older: Up to $808.44/month
- Eligibility: Must have lived in Canada for at least 10 years after age 18; 40 years of residence earns the full amount
You can also choose to delay OAS up to age 70 to increase your monthly payment by 0.6% for each month deferred (up to 36%).
Guaranteed Income Supplement (GIS) in 2025
GIS is available to low-income seniors who are already receiving OAS. It provides a significant, non-taxable monthly supplement:
- Maximum GIS for single seniors: Around $1,097/month
- Married/common-law couples: Payments vary, up to approximately $660–1,095/month depending on combined income and eligibility
- GIS + OAS + CPP can push total income over $3,200/month for qualified individuals
GIS eligibility is based on income thresholds. To maintain eligibility, filing your annual tax return is required, even if you have no income.
Combined Monthly Income – 2025
| Benefit Type | Monthly Amount (Max) | Eligibility Notes |
|---|---|---|
| CPP | $1,433 | Max contributions over ~39–40 years |
| OAS (65–74) | $727.67 | 40+ years of residency in Canada after age 18 |
| OAS (75+) | $808.44 | Same residency, plus aged 75 or older |
| GIS (Single Recipients) | $1,097.75 | Low income, must be receiving OAS |
| Total (CPP + OAS) | ~$2,160 to $2,241 | Based on age group |
| CPP + OAS + GIS (Single) | ~$3,200+ | For low-income seniors meeting all eligibility |
How to Maximize CPP and OAS in Retirement
1. Contribute to CPP as Long as Possible
To receive the maximum CPP amount, work consistently and contribute the maximum amount annually for 39–40 years. Every year you contribute less than the max reduces your potential benefit.
2. Delay CPP or OAS
Delaying CPP past age 65 adds 0.7% per month (up to 42% more at age 70). Delaying OAS adds 0.6% per month (up to 36% more at age 70).
3. Qualify for Full OAS
To get the full OAS pension, aim for 40 years of residency in Canada after age 18. If you’ve lived in Canada less than that, you’ll receive a prorated amount.
4. Keep Income Low to Qualify for GIS
GIS is income-tested. Keep your taxable income low through strategic RRSP withdrawals, pension splitting, and using tax-free savings accounts (TFSAs) instead of taxable accounts.
Things to Consider
- CPP and OAS are taxable income and must be reported on your tax return.
- GIS is non-taxable and does not affect your tax bracket.
- If your annual income exceeds a certain threshold (around $93,000), you may face a clawback on your OAS payments.
- Consider speaking with a financial advisor to plan your income to avoid clawbacks and maximize your benefits.
With CPP and OAS enhancements and the availability of GIS, many Canadian seniors in 2025 can receive a combined monthly retirement income exceeding $3,200.
Whether you’re already retired or planning your future, understanding how these programs work and how to qualify is key to securing a financially stable retirement.
Take the time to check your eligibility, review your contribution history, and file your taxes on time to ensure you’re getting every dollar you’re entitled to.
With the right strategy, retirement in Canada can be more comfortable and secure than ever before.
FAQs
How much will I receive if I qualify for maximum CPP and OAS in 2025?
If you qualify for the maximum CPP ($1,433) and OAS ($727 to $808), your combined monthly payment will be around $2,160–$2,240.
Can I receive both OAS and GIS?
Yes. If you are receiving OAS and meet the income requirements, you can also receive GIS, which could push your monthly income to over $3,200.
Is GIS taxable?
No. The Guaranteed Income Supplement is a non-taxable benefit and does not impact your taxable income.