Starting in March 2025, Canadian seniors will receive increased pension amounts through both the Canada Pension Plan (CPP) and Old Age Security (OAS). These changes are designed to help seniors cope with rising living costs, inflation, and healthcare needs. With enhancements now fully implemented and CPI adjustments in place, both pensions will deliver more support than ever.
For many, this means over $1,900 per month in combined benefits depending on age and contribution history.
Why CPP and OAS Payments Are Increasing in 2025
Every year, the Canadian government reviews both CPP and OAS to keep payments aligned with the Consumer Price Index (CPI). In 2025, high inflation and economic shifts have triggered a round of adjustments.
Key reasons for the 2025 pension boost:
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Increased CPI over 2024 triggered automatic adjustments
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Final phase of the CPP enhancement that began in 2019 is complete
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One-time inflation adjustment added to March OAS payments
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Maximum OAS and CPP combined can now exceed $1,946/month
Overview of CPP and OAS Pension Increases
| Aspect | Details |
|---|---|
| CPP Monthly Increase | Approx. 3% CPI-based |
| OAS Adjustment | Quarterly, ~2.0% total annual rise |
| One-Time Bonus | Included in March 2025 OAS payment |
| Max OAS (Age 65–74) | $727.67/month |
| Max OAS (Age 75+) | $800.44/month |
| CPP Max Pensionable Earnings | Increased to $71,300 |
| CPP Contribution Rate | 5.95% (employee & employer) |
| Self-Employed Contribution | 11.9% |
| OAS Eligibility | Age 65+, 10–40 years of residency |
These updates reflect both routine inflation indexing and the conclusion of CPP enhancement which raises retirement replacement income from 25% to 33.33%.
CPP Pension Increase Details for March 2025
The CPP is a contribution-based pension plan where benefits are determined by how much and how long you contribute during your working life. In March 2025, the plan receives a 3% increase based on inflation.
Important facts about CPP in 2025:
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Maximum retirement pension at age 65 could reach $1,365/month
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Contributions are mandatory up to the new ceiling of $71,300
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Early retirement at age 60 reduces your benefit
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Delaying until age 70 significantly increases your payout
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Final phase of CPP enhancement now fully active
This expansion helps future retirees secure higher income replacement when leaving the workforce.
MUST READ: CRA Refund 2025: How to Claim Big Tax Refunds in Canada This Year
OAS Pension Increase and March 2025 Rates
The Old Age Security (OAS) pension is not contribution-based and is funded through general government revenue. Every quarter, rates are updated in line with inflation.
Here are the current maximum OAS amounts as of March 2025:
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Ages 65–74: $727.67 per month
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Age 75 and above: $800.44 per month
Eligibility requirements:
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You must be 65 years or older
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Must have lived in Canada for at least 10 years since age 18
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Full benefits require 40 years of residency
No action is needed if you are already receiving OAS, but those approaching 65 may need to apply manually if not auto-enrolled.
MUST READ: £3,150 WASPI Payout Confirmed for 2025 – Check If You’re Eligible and How to Claim
Other Senior Benefits Alongside CPP and OAS
Low-income and moderate-income seniors can also access additional support:
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Guaranteed Income Supplement (GIS)
Extra monthly payment for seniors receiving OAS who have low income. -
Allowance Program (Age 60–64)
Support for individuals whose spouse or common-law partner receives GIS and OAS. -
One-Time Inflation Adjustment (March 2025)
An extra bonus added to the March OAS payment to help seniors deal with increased costs.
These programs are crucial for helping vulnerable populations maintain a decent standard of living in retirement.
CPP and OAS 2025 Payment Dates
Pensions are paid monthly, typically toward the end of each month. Here are the confirmed CPP and OAS payment dates for 2025:
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January 29, 2025
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February 26, 2025
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March 27, 2025
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April 28, 2025
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May 28, 2025
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July 29, 2025
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August 27, 2025
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September 25, 2025
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October 29, 2025
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November 26, 2025
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December 22, 2025
To avoid missed payments, make sure your banking details and address are current on your My Service Canada Account.
Tips to Maximize Your Retirement Benefits
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Start CPP at age 70 to receive the highest possible monthly amount
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Combine CPP, OAS, GIS, and provincial programs for full coverage
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Keep personal and banking info updated in Service Canada
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File your taxes annually to stay eligible for GIS and other supplements
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Consider delaying OAS past age 65 for bonus increases
FAQs
How much will CPP and OAS increase in March 2025?
CPP is expected to increase by 3%, while OAS will see a 1.3% quarterly adjustment with a total increase of about 2.0% for the year.
Who qualifies for the March 2025 one-time OAS boost?
Anyone already receiving OAS in March 2025 will receive the one-time inflation bonus automatically.
What is the new CPP maximum contribution limit?
The maximum pensionable earnings have been raised to $71,300 in 2025, increasing the contribution amount for both employees and employers.
Do I need to apply again for the new OAS rate?
No. If you’re already receiving OAS, the adjusted amount will be applied automatically starting March 2025.
Can I get both CPP and OAS together?
Yes. CPP is based on your work contributions, while OAS is based on residency. Many retirees receive both.
What happens if I retire early?
Taking CPP before 65 reduces your monthly benefit, while delaying past 65 increases it. OAS remains available from age 65.
Are these increases permanent?
Yes. These are part of long-term enhancements and inflation indexing, designed to offer lasting financial stability to seniors.
Where can I view or manage my pension payments?
Log in to your My Service Canada Account to track CPP, OAS, and GIS benefits and update your personal details.
Click here to know more.
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