As February 2025 approaches, Canadians are eagerly awaiting their Canada Pension Plan (CPP) and Old Age Security (OAS) payments. For many, these payments could total up to a whopping $2,600. But, are you eligible for this generous amount? Here’s what you need to know to make sure you’re not left out.
What Are CPP and OAS?
The Canada Pension Plan (CPP) is a federal program designed to support Canadians who’ve worked and contributed to the system during their careers. CPP provides a monthly pension to help replace some of your income after you retire, or if you become disabled or pass away. Your CPP payments depend on how much and how long you’ve contributed during your working years.
On the other hand, Old Age Security (OAS) is another key program for seniors. Unlike CPP, OAS doesn’t depend on your contributions but rather on how long you’ve lived in Canada after turning 18. Seniors aged 65 or older are eligible for OAS, with additional benefits available for low-income seniors through the Guaranteed Income Supplement (GIS).
Who Will Get Up to $2,600?
If you’re wondering how to get your hands on $2,600, it’s the combination of both CPP and OAS payments. For some, this total will be available if they’re receiving the maximum amount from both programs.
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CPP Payments: If you’ve contributed to CPP throughout your career, you could receive a maximum monthly payment of about $1,306 starting at age 65. But, if you delay your pension until age 70, you could see that amount grow to over $2,000 per month.
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OAS Payments: If you’re 65 or older, you could receive up to $1,000 per month from OAS, and even more if you qualify for GIS, which is based on your income level.
Together, if you qualify for the maximum amounts from both programs, your total monthly payments could reach $2,600 or even more.
Who Is Eligible for These Payments?
Eligibility for these payments depends on two factors: your work history for CPP and your residency in Canada for OAS.
For CPP, you must have worked in Canada and made contributions to the plan throughout your career. The more you’ve contributed, the higher your monthly payment will be.
For OAS, you must be 65 or older and have lived in Canada for at least 40 years after the age of 18 to receive the full amount. If you’ve lived in Canada for less than 40 years, your OAS benefits will be reduced based on your years of residency.
How to Apply
Both CPP and OAS require separate applications, so make sure you’re prepared to apply for each.
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CPP: You can apply for your CPP pension up to 12 months before you turn 65. You can apply online or by mail, but be sure to have your Social Insurance Number (SIN) and personal details ready.
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OAS: You must apply for OAS when you turn 64, as OAS doesn’t start automatically. You can complete your application online or by filling out a form and submitting it to Service Canada.
Key Things to Keep in Mind
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Inflation Adjustments: Both CPP and OAS benefits are adjusted for inflation every year, which helps your payments keep pace with the cost of living.
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Taxes: Both CPP and OAS payments are considered taxable income, so be aware that you may have to pay taxes depending on your total income.
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Guaranteed Income Supplement (GIS): If you’re a low-income senior, you might also be eligible for GIS, which can increase your monthly payments.
Bottom Line
The $2,600 monthly payment from CPP and OAS is a big boost for many Canadian seniors, but eligibility and the exact amount you’ll receive depend on your work history, age, and how long you’ve lived in Canada. Be sure to apply as soon as possible to avoid delays and maximize your benefits.
If you’re unsure about your eligibility or need help with your application, visit the Service Canada website or contact their support for assistance.
