Eligible Canadians are set to see an increase in their Canada Pension Plan (CPP) and Old Age Security (OAS) payments next week. These payments serve as crucial sources of income for seniors across the country.
Canada Pension Plan (CPP) Details
The CPP provides monthly taxable benefits to eligible individuals, replacing a portion of their income upon retirement. To qualify, one must have made at least one valid contribution to the CPP and be at least 60 years old. Importantly, working Canadians can still receive full CPP benefits even if they continue working after age 60.
Upcoming Changes in CPP Payments
Beginning January 2026, the maximum monthly CPP payment for individuals at age 65 will rise from $1,433 to $1,507.65. Newly eligible beneficiaries at 65 can expect an average monthly payment of $803.76 starting October 2025. This represents a decrease from the average monthly payment of $899.67 recorded in October 2024.
Old Age Security (OAS) Overview
Canadians aged 65 and older can qualify for OAS benefits, irrespective of their work history. To be eligible, individuals must meet specific criteria:
- Must be 65 years or older.
- Must be a citizen or legal resident at the time of application.
- Must have lived in Canada for at least 10 years after reaching age 18.
If residing outside Canada, the requirements change slightly. Applicants must also be citizens or residents on the day before leaving Canada and have lived in the country for at least 20 years since age 18.
Upcoming Changes in OAS Payments
The OAS payment amount is set to rise as well. For those aged 65 to 74, the maximum monthly benefit will be $742.31 in 2026, an increase from $727.67. Those aged 75 and older will see their maximum benefit reach $816.54, up from $800.44, assuming their annual net income for 2024 is below $148,451 or $154,196, respectively.
Key Dates for Payment
Eligible Canadians can expect to receive their CPP payments on Wednesday, January 28. This increase in both CPP and OAS benefits marks a significant development for seniors and those approaching retirement in Canada.
Stay informed about the available government benefits and the expected changes that could affect your financial planning for the upcoming year.
