Canada CPP and OAS Pension Increase April 2025 – As the cost of living continues to rise across Canada, seniors eagerly await the 2025 increase in Canada Pension Plan (CPP) and Old Age Security (OAS) payments. These essential monthly benefits provide a financial lifeline to millions of retired Canadians. Starting April 2025, both CPP and OAS will see an increase to help beneficiaries keep up with inflation and sustain their standard of living.
This article will guide you through the expected CPP and OAS increases, who qualifies, how much you can expect to receive, and other key details that impact your retirement income.
What Is the CPP and OAS Increase for April 2025?
Every year, the Canadian government adjusts federal benefits such as the Canada Pension Plan (CPP) and Old Age Security (OAS) to reflect inflation and changes in the Consumer Price Index (CPI). For April 2025, a modest but impactful boost in monthly payments is set to come into effect.
Key Highlights of the 2025 Pension Increase:
- CPP payments are adjusted quarterly based on the CPI.
- OAS payments are revised every quarter to reflect inflation.
- In April 2025, both benefits will see an increase due to higher inflation in 2024.
The increase is a welcome relief for retired Canadians, especially amid the rising cost of groceries, rent, and medical services.
Breakdown of Expected CPP Amounts in 2025
The Canada Pension Plan is designed to replace a portion of your employment income upon retirement. The actual amount you receive depends on how much and for how long you contributed.
Expected Monthly CPP Payments (2025)
| Category | 2024 Amount | April 2025 Estimated | Annual Increase |
|---|---|---|---|
| Maximum Retirement (Age 65) | $1,364.60 | $1,397.72 | +$33.12 |
| Average Retirement Amount | $758.32 | $776.47 | +$18.15 |
| Disability Benefit | $1,538.67 | $1,574.80 | +$36.13 |
| Survivor’s Pension (under 65) | $707.95 | $724.15 | +$16.20 |
| Survivor’s Pension (65+) | $796.50 | $814.70 | +$18.20 |
| Post-Retirement Benefit | $15.70 | $16.00 | +$0.30 |
| Combined Retirement + Survivor | $1,364.60 | $1,397.72 | +$33.12 |
Note: These figures are based on CPI projections and subject to official confirmation by the Government of Canada.
OAS Pension Increase in April 2025
Old Age Security (OAS) is available to most Canadians aged 65 and older, regardless of work history. Payments are automatically adjusted for inflation every quarter.
Projected OAS Amounts – April 2025
| Age Group | Jan–Mar 2025 | April 2025 Estimated | Quarterly Increase |
|---|---|---|---|
| 65 to 74 years | $713.34 | $727.60 | +$14.26 |
| 75 years and older | $784.67 | $800.00 | +$15.33 |
| Guaranteed Income Supplement (GIS) | $1,065.47 | $1,088.77 | +$23.30 |
| OAS + GIS (Combined) | $1,778.81 | $1,816.37 | +$37.56 |
| Spouse Allowance | $1,289.92 | $1,316.72 | +$26.80 |
| Survivor Allowance | $1,527.45 | $1,556.00 | +$28.55 |
| OAS Clawback Threshold | $90,997/year | $94,010/year | Adjusted for CPI |
Remember: These are estimations. Official amounts will be announced by the federal government in the first quarter of 2025.
Who Qualifies for CPP and OAS?
To receive these monthly pensions, you need to meet specific eligibility criteria. Understanding who qualifies can help you prepare your retirement finances better.
CPP Eligibility:
- Must be at least 60 years old to start receiving payments.
- Must have made at least one valid CPP contribution.
- The amount depends on your contributions and age at retirement.
OAS Eligibility:
- Must be 65 years or older.
- Must have resided in Canada for at least 10 years after age 18.
- Full OAS requires 40 years of Canadian residency after age 18.
How to Apply and Receive the Increased Payments
For most recipients, increases in CPP and OAS are applied automatically. But if you’re planning to start your pension benefits in 2025, here’s what you need to do:
Application Process:
- Apply for CPP at Service Canada through My Service Canada Account (MSCA).
- OAS application is also available online or by mail.
- You must apply for the Guaranteed Income Supplement (GIS) separately.
Payment Schedule:
Payments are issued monthly, typically during the last week of each month. You can receive your payments via:
- Direct deposit (fastest and safest method)
- Mailed cheque (may take longer)
To apply or update your banking information, visit www.canada.ca/en/services/benefits/publicpensions.html
Common Questions About CPP and OAS (FAQs)
1. Will everyone get the same increase in CPP and OAS?
No, the increase is based on inflation but the actual amount received depends on individual contribution history and age group.
2. Is the April 2025 increase the last for the year?
CPP and OAS are reviewed quarterly. While April sees a notable adjustment, further increases may occur in July and October based on inflation data.
3. Can I delay my CPP or OAS to get a higher payout?
Yes, delaying CPP up to age 70 increases your payment by 0.7% for each month of deferral. OAS can be delayed up to 70 as well, increasing by 0.6% per month.
4. Will OAS be clawed back if I earn too much?
Yes, high-income seniors (earning over $90,997 in 2025) may see their OAS partially or fully clawed back under the Recovery Tax.
5. Can non-residents of Canada receive CPP or OAS?
CPP is available worldwide as long as you paid into the program. OAS may be limited for non-residents depending on bilateral agreements.
Departmental Contacts and Resources
For further assistance or updates about your pension:
Service Canada – Pension Enquiries
Phone: 1-800-277-9914
TTY: 1-800-255-4786
Website: www.canada.ca/en/services/benefits/publicpensions.html
Hours: Monday to Friday, 8:30 a.m. – 4:30 p.m. (local time)
Online Services
Visit your My Service Canada Account (MSCA) to apply, check payments, or update your information:
www.canada.ca/en/employment-social-development/services/my-account.html
The CPP and OAS increases in April 2025 provide much-needed relief for Canadian seniors dealing with inflation and rising living costs. These changes reflect the government’s ongoing effort to support retirees and offer financial stability in their golden years. Whether you’re already receiving your benefits or planning to apply soon, staying informed helps you make better financial decisions.
Stay updated by visiting official government websites and subscribing to pension-related updates. And remember, even modest increases can make a meaningful difference when planned properly.
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