On Thursday, March 27, Canadians will see increased payments in their accounts, with Canada Pension Plan (CPP) and Old Age Security (OAS) benefits being disbursed.
Overview of CPP and OAS
Canada Pension Plan (CPP) is a retirement pension paid out monthly. It is a taxable benefit designed to help replace part of your income once you retire.
Old Age Security (OAS), on the other hand, is a monthly payment available to Canadians aged 65 and older.
Both of these benefits will be distributed on March 27, as announced by the federal government.
Eligibility Criteria for CPP and OAS
Eligibility for CPP Payments
To be eligible for Canada Pension Plan (CPP) payments, you must meet specific criteria:
- Minimum Age: You must be at least 60 years old to qualify for CPP benefits.
- Contributions: You need to have made at least one valid contribution to the CPP. These contributions can either come from your employment in Canada or through credits from a former spouse or common-law partner.
You don’t need to be retired to qualify for CPP. Even if you’re still working, you will receive the full CPP payment as long as you meet the criteria. Furthermore, if you’re under 70, working will allow you to contribute towards Post-Retirement Benefits (PRB), which will increase your overall retirement income.
- Post-Retirement Contributions: Once you turn 65, you can stop contributing to CPP. However, you must stop contributing at age 70, even if you continue to work.
Eligibility for OAS Payments
Old Age Security (OAS) is available to Canadian citizens who meet these conditions:
- You must be 65 years old or older.
- You must have lived in Canada for at least 10 years since the age of 18. If you live outside Canada, you must have been a Canadian citizen or resident on the day before leaving the country and must have lived in Canada for at least 20 years after turning 18.
It is worth noting that your employment history does not impact OAS eligibility. This means that you can receive the OAS pension even if you have never worked or are still employed.
How Much Can You Expect?
CPP Payment Amounts
The amount you receive from Canada Pension Plan (CPP) varies, depending on several factors, such as:
- The age at which you begin receiving your pension.
- The amount you have contributed during your working years.
- The length of time you have contributed to CPP.
- The average income you earned throughout your working career.
If you start your CPP pension at the age of 65, the maximum monthly amount you could receive in 2025 is $1,433.
- As of October 2024, the average monthly amount for a new retirement pension at age 65 is $808.14. Your exact benefit will depend on your specific situation.
You can estimate your CPP payments by logging into your My Service Canada Account or by using the Canadian Retirement Income Calculator.
OAS Payment Amounts
For Old Age Security (OAS), the monthly payment you receive also depends on your income level. Here are the details for 2025:
- Aged 65 to 74: The maximum monthly amount you could receive is $727.67, provided your net world income in 2023 is less than $142,609.
- Aged 75 and older: The maximum monthly payment increases to $800.44 if your net world income in 2023 is less than $148,179.
Payment Summary
| Payment Type | Age Group | Maximum Monthly Payment | Income Threshold for Maximum Payment |
|---|---|---|---|
| CPP | 65 and older | $1,433 | Varies based on contributions |
| OAS | 65 to 74 | $727.67 | Net world income under $142,609 |
| OAS | 75 and older | $800.44 | Net world income under $148,179 |
Both Canada Pension Plan (CPP) and Old Age Security (OAS) provide essential income for eligible Canadians as they approach retirement. The amounts you receive will depend on various factors, including your contributions to CPP and your income level for OAS.
Make sure to check your eligibility and payment estimates through official channels to plan for your financial future effectively.
FAQs
Can I receive CPP if I am still working?
Yes, you can still receive the full CPP payment even if you are working, as long as you meet the eligibility requirements. In fact, working after age 60 may increase your benefits through post-retirement contributions.
How can I estimate my CPP benefits?
To get an estimate of your monthly CPP payments, you can log in to your My Service Canada Account or use the Canadian Retirement Income Calculator available on the government website.
Do I need to have worked in Canada to receive OAS?
No, you don’t need to have worked in Canada to qualify for Old Age Security (OAS). The key factors are being a Canadian citizen, being over 65 years old, and having lived in Canada for at least 10 years after the age of 18.
How does my income affect my OAS payment?
Your OAS payment is dependent on your income level. If your net world income is below the specified thresholds, you will receive the full OAS payment.