CPP & OAS 2025 – What Canadian Seniors Need to Know About the New Changes

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Canada’s seniors are getting a financial boost in 2025—and it couldn’t come at a better time. With inflation pushing up prices on just about everything from groceries to rent, the federal government is stepping in with higher payments under the Canada Pension Plan (CPP) and Old Age Security (OAS). Whether you’re already collecting benefits or just about to retire, knowing these updates can help you get the most from your money.

Let’s walk through exactly what’s changing, what you can expect to receive, and how to make smarter decisions for your retirement income.

Overview

CPP and OAS are the two main sources of government retirement income in Canada. CPP is based on how much you contributed during your working years. OAS is available to most people aged 65 and older who have lived in Canada long enough—whether or not they worked.

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So, what’s different this year? A lot actually. The 2025 changes include higher payments, inflation adjustments, new clawback limits, and the full rollout of CPP enhancement. If that sounds like financial alphabet soup, don’t worry. Let’s break it down.

Payments

Here’s what the new monthly payments look like in 2025:

Benefit TypeAge Group2025 Monthly Payment
OAS65–74$727.67
OAS75+$800.44
CPP (Avg. Estimate)All retireesUp 2.6% from 2024

If you’re receiving both CPP and OAS, this increase could mean an extra few hundred dollars every year—just for keeping up with inflation. While it might not make you rich, it certainly helps cover rising living costs.

Enhancement

One of the biggest milestones in 2025 is the full rollout of the CPP Enhancement Program. This started back in 2019 but now it’s fully implemented. What does that mean for you?

If you contributed more to CPP over your career, you’ll now see larger payments. For instance, someone earning $60,000 a year might have received $15,000/year from CPP before the enhancement. In 2025, that same person could get closer to $20,000 annually.

That’s a meaningful difference for long-term retirement budgeting.

Clawback

The OAS clawback is still here, but the income threshold has been raised.

In 2024, your OAS started getting clawed back once your income hit $86,912. In 2025, the threshold is higher—$90,997. That gives you more breathing room before you start losing any benefits.

And if you’re close to that income level, consider smart planning strategies like:

  • Using a TFSA instead of RRSP withdrawals
  • Income splitting with your spouse
  • Delaying withdrawals from retirement savings

These small adjustments can help you keep more of your OAS intact.

Delaying

One powerful option many people overlook is delaying their CPP or OAS payments. If you wait beyond age 65 (up to age 70), your benefits grow every year.

BenefitGrowth Per Year After 65Example at Age 70
CPP8.4%$1,000 → $1,420
OAS7.2%$727 → ~$990

That’s a 40%+ increase just for waiting five years. If you’re still working or don’t need the money right away, this can be a smart way to increase your long-term income.

Eligibility

Eligibility rules haven’t changed much. You still need to be at least 65 to qualify for OAS, and CPP can be started as early as age 60 (with reduced amounts) or delayed up to 70 (for increased amounts).

For newcomers or those who moved to Canada later in life, OAS eligibility is based on how many years you’ve lived in the country. The more years, the more you get—up to the full amount after 40 years.

Tips

To make the most of the 2025 updates, consider these tips:

  • Set up direct deposit through CRA for faster payments
  • Use your My CRA Account to track balances and contributions
  • Review your income to avoid unnecessary clawbacks
  • Delay benefits if you’re still working or don’t need them yet

And most importantly, stay informed. A few smart moves can add thousands to your retirement income over time.

The 2025 updates to CPP and OAS bring real improvements to seniors across Canada. Higher payments, inflation protection, and new income limits all work together to make retirement more secure. By knowing what’s changed and how to take advantage of it, you can stretch your income further and plan with more confidence.

Keep your eyes on your CRA account, review your annual income, and think strategically about when to take your benefits. It’s not just about what you get—it’s about what you keep.

FAQs

How much is OAS at age 75 in 2025?

$800.44 per month for those aged 75 and older.

What is the new OAS clawback limit?

$90,997 yearly income triggers clawback in 2025.

How much did CPP increase in 2025?

CPP rose by 2.6% due to inflation adjustments.

Can I delay CPP for more money?

Yes, delaying to age 70 boosts payments by 42%.

What age can I start OAS?

You can start OAS at age 65 or delay for more.
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