As April 2025 draws near, Canadian seniors are keen to understand the details of the combined Old Age Security (OAS) and Canada Pension Plan (CPP) payments.
These payments form a vital part of retirement income for many, and it’s crucial to know your eligibility, when to expect your payments, and how to prepare.
Understanding the Combined OAS/CPP Payments
In April 2025, eligible seniors may receive up to $1,550 per month from their OAS and CPP benefits. The actual amount depends on factors like age and lifetime contributions.
It’s important to review your eligibility and application steps now to ensure you’re ready for these essential payments.
Whether you’re nearing retirement or already retired, now is the time to check your status and plan your finances accordingly.
How Much Can You Expect?
Here’s a breakdown of the OAS and CPP payments for seniors in April 2025:
| Benefit Program | Age Group | Maximum Monthly Payment | Annual Income Threshold | Payment Date |
|---|---|---|---|---|
| Old Age Security (OAS) | 65–74 | $727.67 | $86,912 (clawback starts) | April 28, 2025 |
| Old Age Security (OAS) | 75+ | $800.44 | $86,912 (clawback starts) | April 28, 2025 |
| Canada Pension Plan (CPP) | 65 (standard) | Up to $1,433.00 | N/A | April 28, 2025 |
For seniors between the ages of 65 and 74, the combined payments could add up to around $1,550 per month. Here’s how this breaks down:
- OAS Payment: $727.67 per month for individuals aged 65–74 or $800.44 per month for those aged 75 and above.
- CPP Payment: Varies based on lifetime contributions, with a maximum monthly payment of $1,433.
It’s important to note that very few Canadians receive the full maximum CPP amount. The average payment for new beneficiaries is around $808.14.
What Is Old Age Security (OAS)?
Overview:
The Old Age Security (OAS) program is a government-funded pension available to most Canadians aged 65 or older, regardless of their work history.
Eligibility for OAS
- Must be 65 years or older
- Lived in Canada for at least 10 years after the age of 18
- Be a Canadian citizen or legal resident
- If residing abroad, at least 20 years of Canadian residency is required for eligibility.
OAS Payment Amount
- Ages 65 to 74: $727.67 per month
- Ages 75 and older: $800.44 per month
These amounts are reviewed quarterly based on inflation.
OAS Clawback
If your income exceeds $86,912, your OAS payments will be reduced. The full clawback threshold is as follows:
- Ages 65–74: Full clawback begins at $142,609
- Ages 75+: Full clawback begins at $148,179
What Is Canada Pension Plan (CPP)?
Overview:
The Canada Pension Plan (CPP) is a contributory pension program, meaning you pay into it during your working years, and the amount you receive depends on your contributions.
Eligibility for CPP
- Must be 60 years or older
- You need at least one valid contribution to the plan.
CPP Payment Amounts for 2025
- Maximum Payment at Age 65: $1,433 per month
- Average New Payment: Approximately $808.14 per month
Early or Delayed CPP
- You can start receiving CPP as early as age 60, though payments will be reduced by 0.6% for each month before age 65.
- Delaying your CPP until age 70 increases your monthly payments by 0.7% for each month after age 65.
When Will OAS and CPP Payments Be Made?
The next payment date for OAS and CPP is April 28, 2025. Payments are issued monthly, typically in the final week of each month. Setting up direct deposit ensures your payments are received on time.
How to Apply for OAS and CPP Payments
OAS Application
- Automatic Enrollment: If you are eligible, you will be automatically enrolled and will receive a letter confirming your enrollment.
- If not automatically enrolled, you can:
- Apply online via My Service Canada Account
- Submit a paper application.
CPP Application
- Not Automatic: You must apply to receive CPP benefits.
- Application options include:
- Online through My Service Canada Account
- Paper form (available by request).
Guaranteed Income Supplement (GIS) for Low-Income Seniors
The Guaranteed Income Supplement (GIS) is a non-taxable monthly benefit available to low-income seniors who are already receiving OAS.
GIS Eligibility
- You must already be receiving OAS.
- Your income must fall below a specific threshold (e.g., approximately $21,624 for singles in 2025).
- To apply for GIS, use the same process as OAS. Payments for GIS will also be issued on April 28, 2025.
As April 2025 approaches, it’s essential for Canadian seniors to prepare for their OAS and CPP payments. These benefits play a crucial role in supporting retirement income, so understanding your eligibility, payment amounts, and application process is key.
By staying informed and taking the necessary steps to ensure you receive your payments on time, you can make the most of these government programs and plan your finances effectively.
FAQs
When will OAS and CPP payments be made in 2025?
The next payment date for both OAS and CPP is April 28, 2025.
How much can I receive from OAS and CPP combined?
Eligible seniors could receive up to $1,550 per month, depending on age and contributions.
What are the income thresholds for OAS clawback?
The full clawback begins at $142,609 for seniors aged 65–74 and at $148,179 for those 75 and older.
How do I apply for OAS or CPP benefits?
For OAS, you can apply online or via paper if not automatically enrolled. CPP requires you to apply manually through online or paper forms.