CRA Pension Boost – As we step into a new fiscal year, millions of Canadian retirees are in for good news. The Canada Revenue Agency (CRA) has confirmed significant increases in both the Canada Pension Plan (CPP) and Old Age Security (OAS) payments starting April 2025. This move is designed to ease the financial burden of inflation and ensure seniors maintain a stable, dignified standard of living during retirement.
This article provides a comprehensive breakdown of what these changes mean for you, including how much more you can expect in your monthly pension, the eligibility details, and what you should do to prepare.
Why Are CPP and OAS Payments Increasing?
The federal government adjusts CPP and OAS benefits annually to reflect the rising cost of living. These increases are based on the Consumer Price Index (CPI), ensuring that inflation does not erode the value of retirement benefits.
In 2025, rising prices, higher housing costs, and ongoing economic shifts have all contributed to a more substantial increase than in previous years.
Key Highlights of the April 2025 Pension Increase
- CPP and OAS payments will see an increase starting in April 2025
- CPP increases will affect both current and future retirees
- OAS increase targets seniors aged 65 and above, with extra boosts for those aged 75+
- Increases are designed to match inflation and improve senior affordability
Updated CPP Payment Amounts in 2025
The Canada Pension Plan (CPP) is a monthly, taxable benefit meant to replace part of your income when you retire. The amount you receive is based on how much and for how long you contributed.
Here’s what’s changing in April 2025:
Canada Pension Plan (CPP) Payment Increase Table – 2025
| Category | 2024 Monthly Amount | 2025 Monthly Amount | Annual Increase |
|---|---|---|---|
| Maximum CPP Retirement Pension | $1,364.60 | $1,423.80 | $710.40 |
| Average CPP Retirement Pension | $758.32 | $789.75 | $377.16 |
| CPP Disability Benefit | $1,538.67 | $1,599.20 | $726.36 |
| Survivor’s Pension (under 65) | $707.95 | $735.10 | $326.70 |
| Survivor’s Pension (over 65) | $772.15 | $800.60 | $341.40 |
| Child of Disabled Contributor | $281.72 | $293.45 | $140.76 |
| Child of Deceased Contributor | $281.72 | $293.45 | $140.76 |
New OAS Payment Details from April 2025
Old Age Security (OAS) is a monthly payment available to most Canadians 65 or older. Unlike CPP, it is funded through general tax revenues and not employment contributions.
OAS Payment Rates Effective April 2025
| Age Group | 2024 Monthly Amount | 2025 Monthly Amount | Annual Increase |
|---|---|---|---|
| Age 65 to 74 | $713.34 | $744.65 | $375.72 |
| Age 75 and older | $784.67 | $819.45 | $416.16 |
| Guaranteed Income Supplement (GIS) – Single | $1,065.47 | $1,115.60 | $601.56 |
| GIS – Couple (combined) | $1,770.94 | $1,852.25 | $976.74 |
These increases are automatically applied, meaning no additional action is required by eligible recipients.
Who Is Eligible for the 2025 CPP and OAS Increases?
You are eligible to receive the increased amounts if:
- You are currently receiving CPP or OAS benefits
- You meet the basic requirements for CPP contributions (for CPP)
- You are 65 or older and meet residency requirements (for OAS)
For the Guaranteed Income Supplement (GIS), you must:
- Be receiving OAS
- Have an annual income below the threshold set by CRA
How the Changes Affect Retirees Financially
These adjustments, although modest for some, are vital in protecting purchasing power. Here’s how these increases could benefit different demographics:
- Low-income seniors will see greater relief through GIS enhancements
- Mid-level CPP recipients will benefit from both indexed increases and higher caps
- Older seniors (75+) receive special attention with larger OAS increases
How to Maximize Your CPP and OAS Benefits
To make the most of your government retirement benefits, consider the following:
- Delay your CPP start to age 70 for maximum monthly payouts
- Apply for GIS if your income is below the eligibility threshold
- Review your tax filings to ensure correct income reporting
- Coordinate with your spouse’s benefits for additional financial support
Frequently Asked Questions (FAQs)
Q1: Do I need to reapply to get the higher CPP or OAS amounts in 2025?
No. The increase is automatic for those currently receiving benefits.
Q2: What if I turn 65 in 2025? Will I receive the increased OAS?
Yes, your OAS payment will reflect the updated April 2025 rates upon eligibility.
Q3: Are CPP and OAS payments taxable?
Yes, both are considered taxable income in Canada.
Q4: Will the April increase affect my GIS eligibility?
It may impact GIS calculations, but GIS thresholds will also be adjusted to accommodate inflation.
Q5: Can I still apply for retroactive CPP or OAS payments?
Yes, you can apply for up to 11 months retroactively for CPP and up to 12 months for OAS.
Contact Details for More Information
For any questions or to confirm your eligibility or payment status, you can contact the respective government departments below:
Canada Revenue Agency (CRA):
- Website: https://www.canada.ca/en/revenue-agency.html
- Phone (Individuals): 1-800-959-8281
Service Canada:
- Website: https://www.canada.ca/en/employment-social-development/corporate/contact/oas.html
- OAS and CPP Inquiries: 1-800-277-9914
TTY (hearing impaired):
- 1-800-255-4786
The upcoming CPP and OAS payment increases in April 2025 bring welcome relief to Canada’s seniors, especially amid rising inflation and everyday costs. These changes reflect the government’s commitment to supporting retirees and providing financial security. If you’re eligible, there’s nothing you need to do—payments will be adjusted automatically.
However, for those nearing retirement or looking to maximize their benefits, now is the perfect time to review your options and ensure you’re making the most of everything available. For more detailed support, reach out to CRA or Service Canada directly.
Join
Join