CPP & OAS Explained
Canada's government retirement benefits — what you'll get and when.
Canada Pension Plan (CPP)
CPP is a monthly retirement benefit you earn by working and contributing throughout your career. Both you and your employer pay into it through payroll deductions.
Key CPP Numbers (2026)
- ⬥Maximum monthly at 65: ~$1,364/month
- ⬥Average monthly at 65: ~$815/month (most people don't get the max)
- ⬥Earliest you can start: Age 60 (reduced by 0.6%/month before 65)
- ⬥Latest you can defer: Age 70 (increased by 0.7%/month after 65)
When Should You Start CPP?
Old Age Security (OAS)
OAS is a monthly payment from the government for Canadians aged 65+. Unlike CPP, you don't need to have worked to receive it — it's based on how long you've lived in Canada.
Key OAS Numbers (2026)
- ⬥Maximum monthly (65-74): ~$727/month
- ⬥Maximum monthly (75+): ~$800/month (10% bonus)
- ⬥Eligibility: Must have lived in Canada for at least 10 years after age 18
- ⬥Full OAS: Requires 40 years of Canadian residency
OAS Clawback
If your net income exceeds ~$90,997 (2026), you'll start losing OAS at a rate of 15 cents per dollar over the threshold. If your income exceeds ~$148,000, you lose it entirely. This is why RRSP withdrawal planning matters in retirement.
Guaranteed Income Supplement (GIS)
GIS is an additional monthly payment for low-income seniors who receive OAS. If your annual income (excluding OAS) is under ~$21,624 (single) or ~$28,560 (couple), you may qualify for up to ~$1,065/month extra.
CPP + OAS Together
Maximum combined at 65:
CPP ($1,364) + OAS ($727) = ~$2,091/month or ~$25,092/year
That's a start, but most Canadians need personal savings (RRSP, TFSA) to maintain their lifestyle in retirement.
🍁 Canadian Pro Tip
Check your CPP statement on My Service Canada Account to see your estimated retirement benefit. It's based on your actual contributions — and it might surprise you (for better or worse). The earlier you check, the more time you have to plan.