If you’re a senior living in Canada or approaching retirement age, you might be wondering how much financial support you can expect from the government. The good news is that through the Canada Pension Plan (CPP) and Old Age Security (OAS), some seniors could receive as much as $1,700 or more this June. In fact, depending on your age and how much you contributed to CPP during your working years, your monthly income from these programs could even go higher. Let’s break down how this works and how you can make the most of your benefits.
Understanding CPP and OAS: The Basics
What is CPP?
The Canada Pension Plan (CPP) is a monthly payment you receive in retirement if you contributed to the plan during your working years. It’s meant to replace part of your income once you stop working. CPP payments are taxable, and the amount you get depends on:
- How much you contributed
- How long you contributed
- When you decide to start receiving your pension
For example, in June 2025, the maximum CPP benefit is up to $1,433 per month. But keep in mind, very few people qualify for the maximum. Most people receive an average CPP amount, which is lower. To qualify for the full amount, you need to have worked and contributed at the maximum limit for about 39 years, and start receiving payments at age 65.
What is OAS?

Old Age Security (OAS) is a monthly benefit funded by the government. Unlike CPP, it’s not based on your work or contributions. Instead, it depends on how long you’ve lived in Canada after age 18. To qualify, you need to have lived in Canada for at least 10 years. If you’ve lived in the country for 40 years or more, you might qualify for the full OAS amount.
As of June 2025:
- Seniors aged 65 to 74 can receive up to $727.67 per month
- Seniors aged 75 and above can receive up to $800.44 per month
These benefits are also adjusted each year to account for inflation.
Total Potential Benefits
If you qualify for both CPP and OAS, your monthly income could look something like this:
- CPP (max): $1,433.00
- OAS (65–74): $727.67
- OAS (75+): $800.44
This means seniors could receive a total of $2,233.44 per month at most.
Eligibility Requirements
For CPP:
- You must be at least 60 years old
- You need to have made at least one valid CPP contribution
- The amount you receive depends on your total years and level of contribution
For OAS:
- You must be at least 65 years old
- You must have lived in Canada for at least 10 years after turning 18
- If your annual income exceeds $90,997 (for 2025), your OAS benefit will be reduced by 15% of the excess income. This is known as the “OAS clawback”
A Quick Look at the History
OAS began in 1952 as a way to provide a basic income for seniors, regardless of their work history. However, it wasn’t enough for most people to live on. In 1966, the CPP was introduced to fill that gap by giving working Canadians a chance to build up additional income in retirement.
Over time, both programs have seen changes to keep up with the rising cost of living and changes in demographics. CPP enhancements were added in recent years to provide higher future payments for younger workers.
How to Maximize Your Retirement Benefits
If you’re aiming to make the most of your CPP and OAS payments, here are some practical tips:
1. Delay Taking CPP
If you can afford to wait, delaying CPP until age 70 can increase your payments by up to 42%. For example, instead of $1,000 at age 65, you might get around $1,420 by waiting until 70.
2. Maximize Your CPP Contributions
The more you contribute, the more you will get. This means staying employed and earning above the annual maximum pensionable earnings (YMPE) for as many years as possible.
3. Apply Early
It takes time to process applications, so apply for both CPP and OAS at least 6 months before you want to start receiving payments.
4. Consider Spousal Benefits
If you’re married or in a common-law relationship, you may benefit from pension sharing. This can reduce your tax burden by spreading income between spouses.
Taxes and Retirement Income

Both CPP and OAS are taxable. This means that the money you receive will be added to your total income and taxed at your applicable rate.
For seniors with higher income levels, this could push them into a higher tax bracket and trigger OAS clawbacks. That’s why it’s important to manage your income sources. Here are a few strategies:
- Income Splitting: Share up to 50% of your pension income with your spouse to lower your taxable income.
- RRSP Planning: Withdraw RRSP funds strategically before age 71 to manage your tax exposure.
- TFSA Contributions: Use a Tax-Free Savings Account to grow savings without impacting your taxable income or OAS eligibility.
Real-Life Example: Meet Anne
Let’s take a look at Anne’s situation to understand how CPP and OAS can work together.
Anne is 66 years old and recently retired. During her working years, she consistently contributed the maximum amount to CPP. Now, she receives $1,433 each month from CPP and $727.67 from OAS, totaling $2,160.67 monthly.
Her annual income is around $25,928. Since this is below the OAS clawback threshold, she doesn’t lose any of her benefits. She might even qualify for the Guaranteed Income Supplement (GIS), which provides additional support to low-income seniors.
Watch Out for Common Mistakes
Planning your retirement benefits can be tricky. Avoid these common errors:
- Applying Late: If you delay applying, you might miss out on months of income.
- Starting CPP Too Early: Taking CPP at 60 can reduce your monthly payments permanently.
- Forgetting to Update Information: Make sure your address and banking details are up to date with Service Canada.
- Ignoring Taxes: Always account for taxes so you know your actual take-home income.
Conclusion:
The Canada Pension Plan and Old Age Security are two important pillars of retirement income in Canada. While $1,700 per month is a realistic expectation for many seniors, some can receive even more by planning carefully.
By understanding how these programs work, staying on top of your applications, and making smart financial decisions, you can ensure a stable and comfortable retirement. Start planning early, seek professional advice if needed, and stay informed to make the most of the support available to you as a Canadian senior.
FAQs
1. What is the $1,700 CPP payment in June 2025?
The $1,700 figure refers to a combined estimate of Canada Pension Plan (CPP) and Old Age Security (OAS) benefits some seniors may receive in June 2025.
2. Who is eligible for the full $1,700 payment?
Seniors who contributed the maximum to CPP and qualify for the full OAS can receive the full amount. Age and residency also influence OAS eligibility.
3. How much is the maximum monthly CPP benefit in June 2025?
The maximum monthly CPP benefit is $1,433.00.
4. What is the OAS amount for seniors aged 65 to 74?
Seniors aged 65 to 74 can receive up to $727.67 monthly in OAS.
5. What is the OAS amount for seniors aged 75 and older?
They can receive up to $800.44 monthly.