Canada’s retirement income programs are seeing major revisions starting in April 2025, with key changes across the Canada Pension Plan (CPP), Old Age Security (OAS), Guaranteed Income Supplement (GIS), and the Registered Retirement Savings Plan (RRSP). These updates aim to better align with inflation, address rising living costs, and offer greater financial security for seniors and low-income Canadians.
Overview of April 2025 Pension Changes
| Program | Eligibility | April 2025 Update |
|---|---|---|
| CPP | Age 60+, valid contribution history | Max monthly benefit raised to $1,406.10 |
| OAS | Age 65+ (based on residency) | 1.3% increase: $727.67 (age 65–74), $800.44 (age 75+) |
| GIS | Low-income seniors receiving OAS | Up to $1,086.88 monthly |
| RRSP | Canadian resident, under age 71 | Contribution rules updated for XML reporting |
Canada Pension Plan (CPP) – April 2025 Update
The CPP benefit cap is rising in response to inflation. Starting in April:
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Maximum payment: $1,406.10/month (up from $1,364.60)
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Average payment: $787.50/month
This increase reflects higher earnings ceilings and updated contribution thresholds.
Old Age Security (OAS) Changes
OAS payments are adjusted quarterly based on inflation. The April increase reflects a 1.3% hike:
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Age 65–74: $727.67/month
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Age 75 and above: $800.44/month
Payment values depend on how many years you’ve resided in Canada after age 18.
Guaranteed Income Supplement (GIS)
GIS supports low-income seniors with extra monthly payments. It’s available to OAS recipients with minimal additional income. For eligible recipients:
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Maximum monthly GIS: $1,086.88
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Combined OAS + GIS: Helps seniors maintain basic living standards
This supplement helps seniors avoid poverty and manage daily expenses more comfortably.
RRSP Contributions and Updates
The CRA has updated how RRSP contributions are recorded and reported:
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RRSP receipts must now be submitted in XML format.
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The requirement for an authorized signature on receipts has been eliminated.
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Maximum 2024 RRSP contribution limit: Approximately $2,630 monthly or $31,560 annually.
These changes modernize how RRSPs are administered and reported for tax purposes.
Positive Outcomes of April 2025 Reforms
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Higher Income for Retirees: Seniors will find it easier to manage food, utilities, and healthcare.
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Boost for Age 75+ Citizens: Those above 75 get larger OAS increases.
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Modernization: RRSP updates streamline retirement planning and tax filing.
How to Claim CPP, OAS, GIS, and RRSP in 2025
If you haven’t applied yet, follow these steps to begin receiving your pension payments:
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Register early – You’re not auto-enrolled in most programs.
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Prepare documents – Especially your Social Insurance Number (SIN).
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Apply through Service Canada – Online or in person.
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Wait for confirmation – After approval, you’ll receive a start date and monthly payment.
You can always check payment details or eligibility at the official site: www.canada.ca
To check your payment or application status, contact Service Canada at 1-800-277-9914.
FAQs
What is the maximum CPP payment in April 2025?
The maximum Canada Pension Plan (CPP) payment has increased to $1,406.10 per month for those retiring at age 65.
Who qualifies for the April 2025 OAS increase?
Anyone aged 65 or older who has lived in Canada for a qualifying period and receives OAS. The increase is automatic based on inflation adjustments.
Is GIS automatically added to my pension?
No. You must apply for GIS separately if you have low or no income other than OAS.
How much can I contribute to an RRSP in 2025?
You can contribute up to $31,560 annually based on your income, with monthly averages around $2,630. Always check your CRA My Account for your exact limit.
Do these changes apply to new applicants only?
No. If you’re already receiving benefits, your monthly amount will be adjusted automatically. New applicants must meet eligibility criteria and apply through Service Canada.
When will the April 2025 pension payments be deposited?
CPP and OAS payments for April will be directly deposited on April 28, 2025.
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