Canadian seniors will see important updates to their Canada Pension Plan (CPP) and Old Age Security (OAS) benefits in 2025. These changes are designed to help retirees keep up with rising costs for food, housing, and healthcare.
CPP and OAS
The Canada Pension Plan provides monthly income to those who worked and contributed during their careers. You can receive it when you retire, if you become disabled, or as a survivor benefit.
Old Age Security is a government-funded monthly payment for people aged 65 and older who have lived in Canada for a set number of years. Unlike CPP, you do not need a work history to qualify.
Inflation-Based Increases
In 2025, both CPP and OAS payments are rising to reflect inflation.
- OAS for ages 65–74: $727.67/month
- OAS for ages 75+: $800.44/month
- CPP: Increased by 2.6% compared to 2024
These adjustments help seniors maintain purchasing power despite higher living costs.
Key 2025 CPP and OAS Updates
| Feature | Details |
|---|---|
| Main Aim | Provide more financial support in 2025 |
| Programs | CPP and OAS |
| Authority | Canada Revenue Agency (CRA) |
| Eligibility | Canadians aged 65+ (some early CPP options at 60) |
| Payment Mode | Direct deposit or CRA online account |
| OAS Age Groups | 65–74 and 75+ with different rates |
| OAS Clawback | Starts at $90,997 annual income |
CPP Enhancement Fully Implemented
The CPP enhancement program that began in 2019 is fully active in 2025. Seniors who contributed more during their careers will now receive larger pensions.
Example:
- Before: $60,000 income could mean ~$15,000/year CPP
- After enhancement: Same income gives ~$20,000/year CPP
OAS Clawback Changes
If your annual income is above $90,997 in 2025, 15 cents of OAS is deducted for every dollar over that amount.
Ways to reduce clawback impact:
- Use income splitting with your spouse
- Delay RRSP withdrawals
- Save in a TFSA, which does not count toward taxable income
Benefits of Delaying Payments
You can delay CPP or OAS until age 70 to increase your monthly income:
- CPP: +8.4% per year after 65
- OAS: +7.2% per year after 65
Example:
- CPP at $1,000/month at 65 → $1,420/month at 70
- OAS at $727/month at 65 → ~$990/month at 70
Summary of 2025 Changes
- Higher CPP and OAS payments
- Same eligibility age (65+, early CPP at 60)
- New OAS clawback threshold of $90,997
- CPP enhancement means bigger payouts for higher contributors
- Payments available via direct deposit or CRA MyAccount
With these changes, Canadian seniors can expect stronger financial support in 2025. Planning ahead, delaying benefits when possible, and tracking your income can help you maximize retirement income.
FAQs
How much is OAS in 2025?
$727.67 for ages 65–74 and $800.44 for 75+.
What is the 2025 CPP increase?
A 2.6% rise from 2024 payments.
When does OAS clawback start in 2025?
At $90,997 annual income.
Can I take CPP before 65?
Yes, as early as age 60 but with reduced payments.
How much more if I delay CPP?
Up to 42% more by delaying until age 70.
