In Canada, understanding the financial benefits available during retirement is crucial. Two of the most essential programs supporting seniors are the Canada Pension Plan (CPP) and Old Age Security (OAS).
These programs, along with the Guaranteed Income Supplement (GIS), provide a significant portion of retirement income to seniors.
As rumors about a “$2,928 CPP payment + $825 bonus” circulating for April 2025 generate interest, it’s important to clarify the reality.
While no specific one-time bonus has been confirmed by the Government of Canada, eligible seniors may see significant monthly support. Let’s break down what these programs offer and how much you could be receiving.
Canada Pension Plan (CPP) Payments in 2025
The Canada Pension Plan (CPP) is designed to provide Canadians with income during retirement, based on the contributions made throughout their working life.
CPP Maximum Monthly Payment (2025):
- At age 65: $1,433.00
- Average Monthly Payment for New Beneficiaries: $899.67
Factors Affecting Your CPP Amount:
Several factors influence how much you can receive from CPP:
- Earnings: The higher your average income during your working years, the higher your CPP payments.
- Contributions: Contributions made by both you and your employer during your working years directly affect the amount.
- Start Age: The earlier you start receiving your CPP, the smaller the monthly amount, while delaying it can result in higher payments.
2025 CPP Contribution Rates:
- Employees and Employers: 5.95%
- Self-Employed: 11.90%
Maximum Earnings for Contributions:
- YMPE (Year’s Maximum Pensionable Earnings): $71,300
- YAMPE (Year’s Additional Maximum Pensionable Earnings): $81,200
Old Age Security (OAS) Payments in 2025
The Old Age Security (OAS) program provides financial assistance to seniors aged 65 and older, funded by general tax revenues.
OAS Monthly Payment (April to June 2025):
- Ages 65-74: Up to $727.67
- Ages 75 and over: Up to $800.44
Eligibility Criteria for OAS:
To qualify for OAS, you must meet the following criteria:
- Be at least 65 years old.
- Have lived in Canada for at least 10 years since turning 18.
OAS Recovery Tax (Clawback):
If your net world income exceeds a specific threshold, you may be required to repay part of your OAS payments.
- Income Threshold (2023): $86,912
Example: If your net income is $96,000, the excess amount ($96,000 – $86,912 = $9,088) will be subject to a 15% clawback. This means you would repay $1,363.20 for the period from July 2024 to June 2025.
Guaranteed Income Supplement (GIS)
The Guaranteed Income Supplement (GIS) provides additional financial assistance to low-income seniors who already receive OAS.
Maximum GIS Monthly Payments (April to June 2025):
- Single, Widowed, or Divorced: Up to $1,086.88
- Couples (Both Receiving Full OAS): Up to $654.23
Eligibility for GIS:
Eligibility for GIS depends on your annual income:
- Single individuals: Annual income less than $22,056
- Couples: Combined income thresholds vary based on the partner’s OAS status.
It is essential to file taxes annually to ensure accurate GIS payments and continued eligibility.
| Benefit Type | Maximum Monthly Payment (2025) | Eligibility Criteria |
|---|---|---|
| CPP (Age 65) | $1,433.00 | Based on contributions, earnings, and start age |
| OAS (Ages 65-74) | $727.67 | Age 65+, 10 years of residency in Canada |
| OAS (Ages 75+) | $800.44 | Age 75+, 10 years of residency in Canada |
| GIS (Single) | $1,086.88 | Income below $22,056 |
| GIS (Couple, Both OAS) | $654.23 | Combined income below thresholds |
How to Apply for CPP and OAS
Applying for CPP and OAS benefits is straightforward. Here’s how to get started:
- Check Eligibility: Review the eligibility criteria for both programs.
- Prepare Documents: Have your Social Insurance Number, birth certificate, and banking information ready.
- Apply Online or by Mail:
- Online: Through the My Service Canada Account.
- Mail: Download and complete forms from the Government of Canada website.
It is recommended to apply several months before you want to start receiving benefits to avoid delays.
FAQs
When can I start receiving CPP benefits?
You can start receiving CPP as early as age 60, but your payments will be reduced if you start before age 65.
How do I know if I’m eligible for GIS?
You need to be receiving OAS and meet the income threshold. Single individuals must earn less than $22,056 annually.
How can I avoid OAS clawbacks?
To avoid the OAS recovery tax, keep your net world income below $86,912.