The Canada Pension Plan (CPP) and Old Age Security (OAS) serve as essential financial support for retired Canadians. Many individuals rely on these pensions as their primary source of income after retirement. Understanding how much you can receive from CPP and OAS combined is crucial when planning your post-retirement finances.
However, not everyone receives the maximum pension amounts. Several factors, including the age at which you start collecting payments, your lifetime contributions, and additional benefits like the Guaranteed Income Supplement (GIS), determine the total amount you can receive.
How Much Will You Get as CPP and OAS Combined?
The total amount an individual can receive from CPP and OAS varies depending on their earnings, contribution history, and the age at which they begin collecting benefits.
CPP Payments in 2025
The maximum monthly CPP payment for 2025 is $1,306.57, but most recipients receive an average of $772.71 per month.
Several factors influence the actual amount you receive:
- Your total contributions over the years
- Your age when you start receiving CPP payments
- Additional benefits, such as post-retirement benefits or survivor’s pensions
If you qualify for the CPP post-retirement benefit (PRB), you may receive an extra $40.25 per month in 2025. Additionally, individuals receiving a combined CPP survivor’s and retirement pension can get a maximum of $1,313.13 per month.
For those receiving both CPP disability and survivor’s pensions, the maximum payment is $1,542.77 per month.
OAS Payments in 2025
The Old Age Security (OAS) program provides financial support to seniors aged 65 and older. The maximum OAS monthly benefit depends on the recipient’s age:
- Ages 65-74: Up to $707.68 per month
- Ages 75 and older: Up to $778.45 per month
If an individual qualifies for the Guaranteed Income Supplement (GIS), they can receive additional financial support. GIS payments are income-based and can significantly increase the total retirement income for low-income seniors.
Full Benefits Explained
To maximize CPP and OAS benefits, individuals must meet certain eligibility criteria and consider strategic planning. Here are key factors that determine how much a person will receive:
- CPP Contributions: The total amount received from CPP depends on contributions made throughout an individual’s working years. Higher contributions result in higher payouts.
- Retirement Age: Delaying CPP payments until age 70 increases the monthly amount received. However, delaying beyond age 70 does not provide additional benefits.
- OAS Eligibility: Seniors automatically qualify for OAS at age 65, but delaying OAS can result in higher payments. However, delaying beyond age 70 is not recommended, as no further increase occurs.
- Income Thresholds: High-income earners may be required to repay a portion of their OAS benefits if their annual income exceeds a certain threshold. For 2022, the OAS recovery tax applied to individuals earning more than $81,761.
Maximizing Your CPP and OAS Benefits
Here are some key strategies to ensure you receive the highest possible pension payments:
- Work Longer & Contribute More: The more you contribute to CPP, the higher your payments will be after retirement.
- Delay CPP Payments Until Age 70: Waiting until age 70 increases your monthly CPP payout by 42% compared to claiming it at age 65.
- Consider Post-Retirement Benefits (PRB): If you continue working while receiving CPP, you may qualify for post-retirement benefits, further increasing your pension.
- Avoid OAS Clawback: If your income exceeds the OAS recovery threshold, reducing taxable income can help retain more OAS benefits.
- Pension Sharing for Tax Benefits: Married couples can split their CPP pension to reduce taxable income and lower their overall tax liability.
FAQs
How much can I receive from CPP and OAS combined?
The total combined amount depends on factors like lifetime earnings, contribution history, and the age you start collecting payments. The maximum potential payment in 2025 is around $2,085 per month for those receiving full CPP and OAS benefits.
When should I start taking my CPP benefits?
It is generally recommended to delay CPP benefits until age 70 to receive the maximum possible payment. However, this depends on your financial situation and health.
Can I receive CPP and OAS at the same time?
Yes, individuals eligible for both programs can receive CPP and OAS payments simultaneously once they meet the age and contribution requirements.
Is OAS automatically given at age 65?
In most cases, OAS enrollment is automatic. However, individuals should check with My Service Canada Account to confirm their eligibility.
Can my CPP payments be reduced?
CPP payments can be lower if an individual contributed less over their working years or if they start collecting CPP before age 65.
What is the OAS clawback, and how does it work?
The OAS clawback (or OAS recovery tax) applies when an individual’s income exceeds a specific threshold. In 2022, anyone earning over $81,761 had to repay part of their OAS benefits.
Is delaying OAS past age 70 beneficial?
No, delaying OAS beyond age 70 does not increase the payment amount, so it is best to apply before turning 70.
Can I receive GIS along with OAS?
Yes, low-income seniors may qualify for the Guaranteed Income Supplement (GIS), which provides additional monthly payments on top of OAS.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.
