Retirement just got a fresh new coat of paint, folks. The OAS & CPP Changes in 2025 are rollin’ out, and whether you’re settin’ up your first tent or already sittin’ ’round the campfire in your golden years, you gotta know what’s new. We’re talkin’ fresh dates, boosted benefits, and rule shifts that might just affect how—and when—you cash in on those well-earned retirement bucks.
Now, I ain’t just blowin’ smoke. I’ve walked the walk—seen the confusion, the missed chances, and the “wait, what?!” moments too many folks face when it comes to Canada’s Old Age Security (OAS) and Canada Pension Plan (CPP). So, in this guide, I’m breakin’ it all down, clear and simple.
What Are OAS and CPP, Anyway?
Think of the Canada Pension Plan (CPP) as a retirement savings plan you and your employer pay into throughout your working years. The more you contribute, the more you get back in retirement. Old Age Security (OAS), on the other hand, is a benefit funded by the government’s general tax revenues, available to most Canadians aged 65 and older, regardless of their work history.
The Evolution of the CPP: Before and After the Enhancement
Before 2019, the Canada Pension Plan aimed to replace about a quarter (25%) of your average work earnings. The multi-year CPP enhancement, which reaches a key milestone in 2025, is changing that. The goal is to eventually replace one-third (33.33%) of your average earnings, offering a more substantial foundation for your retirement income. The introduction of a second, higher earnings ceiling in 2024 and 2025 is a critical part of this plan to better support Canadians with higher lifetime earnings.
OAS & CPP Changes in 2025
| Feature | 2025 Update | Details |
|---|---|---|
| CPP & OAS Payment Dates | Monthly (Jan 29 – Dec 22) | Same date for both. |
| Max CPP Benefit | $1,433/month | As of Jan 2025. |
| OAS Monthly Amount | Up to $800.44 | For ages 75+; $734.95 for ages 65–74 |
| Eligibility Age | OAS: 65 (phasing to 67); CPP: 60–70 | Gradual change for OAS from 2023–2029 |
| Clawback Threshold | $90,997/year | Income-tested OAS repayment starts (Canada.ca) |
| Contribution Cap (YMPE) | $71,300 | CPP max pensionable earnings cap |
| Tools to Use | My Service Canada, Retirement Calculator | Easy access to apply, check payments, or estimate benefits |
The OAS & CPP Changes in 2025 come with bigger benefits, updated rules, and smart choices for folks planning their retirement journey. Whether you’re claiming early or delaying for the max payout, knowing the ins and outs of these updates can make a huge difference. Use this guide to plan wisely, and always keep an eye on your income to avoid giving back what you’ve earned.
Stay connected, talk to an elder or advisor, and use official tools to make every loonie count.
When You’ll Get Paid: 2025 CPP & OAS Payment Dates
Listen up, family—knowing when that money hits is key to planning. In 2025, CPP and OAS hit your bank account on the same day each month:
Jan 29, Feb 26, Mar 27, Apr 28, May 28, Jun 26, Jul 29, Aug 27, Sep 25, Oct 29, Nov 26, Dec 22
Mark your calendars and double-check your My Service Canada Account to make sure your direct deposit is ready.
Pro Tip:
Sign up for email reminders inside your My Service Canada account so you never miss a deposit date or government update.
CPP Explained: Bigger Payouts, Bigger Plans
What Is CPP?
The Canada Pension Plan pays retirement benefits based on what you earned and contributed during your working years. It kicks in as early as age 60 and maxes out at 70.
2025 CPP Maximum
- Max monthly: $1,433 (if you maxed out contributions)
- Average paid: Around $899/month
- Contribution cap: $71,300 (earnings above this not used to calculate base CPP)
CPP Enhancement
Since 2019, CPP has been getting a facelift:
- Replacement rate rising from 25% → 33.33%
- Higher earnings ceiling (called YAMPE) introduced above YMPE (~$79,400 in 2025)
- More contributions now = More payout later
When to Start CPP?
- Start at 60? Lose 0.6% per month before 65
- Start at 70? Gain 0.7% per month after 65 (up to +42%)
Example: If you start at 70 instead of 65, your monthly check can be over $2,000!
Case Study:
Sandra, age 64, plans to retire in 2026. She’s deciding whether to take CPP early. Based on her estimated longevity and current savings, her financial advisor recommended delaying until 67 to optimize lifetime payouts.
OAS 2025: What’s Changed & What to Expect
Who Gets OAS?
Old Age Security is for seniors 65+, but it’s phasing up to 67 by 2029. You must live in Canada for at least 10 years after age 18 (or 20 years if applying from abroad).
OAS Monthly Payment
- Ages 65–74: up to $734.95
- Ages 75+: gets a 10% boost → up to $800.44/month
Deferring OAS
You can delay OAS up to age 70 and earn 0.6% more per month of delay (36% total).
Example: If you qualify for $700/month at 65 and defer 5 years, you’d get about $952/month instead.
Inflation Adjustment
OAS adjusts quarterly with the cost of living (CPI). This helps keep pace with rising grocery bills, gas prices, and rent.
The OAS Clawback: Watch Your Income
If your net income is over $90,997, part of your OAS gets clawed back (15 cents per dollar). That full benefit disappears around $151,000 in income.
Tip: Watch your withdrawals from RRSPs, pensions, or selling property—they could bump your income up.
Tax Planning Tips
- Convert RRSPs to RRIFs strategically
- Split pension income with your spouse
- Consider Tax-Free Savings Accounts (TFSAs) for retirement withdrawals
Step-by-Step Retirement Prep
Step 1: Check Eligibility
- CPP: Worked and contributed? You qualify.
- OAS: Lived in Canada 10+ years after age 18? You’re good.
Step 2: Decide When to Apply
- Think long-term. More money if you delay, but only if you live long enough to enjoy it.
Step 3: Monitor Your Income
- Avoid that OAS clawback. Budget smart.
Step 4: Set Up Direct Deposit
- Through My Service Canada Account
Step 5: Stay Informed
- CPP and OAS adjust quarterly for inflation.
- Keep tabs at Canada.ca
Step 6: Use Free Tools
- OAS and CPP calculators give estimates
- Retirement budget planners help you stay on track
CPP Contributions: 2024 vs. 2025
The big story for 2025 is the final phase of the enhanced CPP, which introduces a second, higher earnings ceiling. This means some higher-income earners will contribute more and, in turn, receive more in retirement. Here’s a look at how the numbers stack up.
| Contribution Component | 2024 | 2025 |
| Year’s Maximum Pensionable Earnings (YMPE) | $68,500 | $71,300 |
| Year’s Additional Maximum Pensionable Earnings (YAMPE) | $73,200 | $81,200 |
| Employee/Employer Contribution Rate (on earnings up to YMPE) | 5.95% | 5.95% |
| Employee/Employer Contribution Rate (on earnings between YMPE & YAMPE) | 4.00% | 4.00% |
Indigenous & Rural Considerations
For First Nations, Métis, Inuit, and folks in rural communities, access can be tricky.
- Apply early and get support from a band office or service center
- Use mail-in forms if internet access is limited
- Know that travel time or part-time work doesn’t reduce eligibility
Cultural Tip: Many elders qualify for full benefits even if their job histories are non-traditional. CPP counts all valid work—you just need contribution history.
USA vs Canada: CPP vs Social Security
Our cousins down south use Social Security. It’s similar but has key differences:
- U.S. workers pay 6.2% vs Canada’s 5.95%
- Max Social Security (2025): about $4,700 USD/month
- Canada’s max CPP: $1,433 CAD/month
So, yeah—Canada’s is lower, but it’s just one piece of the retirement pie.
FAQs
Q: Can I get both CPP and OAS?
A: Yup! Most retirees get both. They’re separate programs.
Q: What if I never worked? Can I still get OAS?
A: Yes, if you meet residency requirements.
Q: Should I take CPP at 60 or wait?
A: Depends on your health, job status, and whether you need the money now or later.
Q: Can I work while receiving CPP or OAS?
A: Yes. But income may affect OAS (due to clawback).
Q: Will CPP/OAS ever run out?
A: Not likely. CPP is actuarially sound, and OAS is backed by federal tax revenue.
Q: Can newcomers to Canada get OAS?
A: Yes, after 10 years of residency in Canada.
