Canada Adds New Pension Support in 2025—What You Can Claim on c, OAS, GIS & QPP
Canada Adds New Pension Support: In 2025, Canada has introduced new enhancements to its retirement income programs, including the Canada Pension Plan (CPP), Old Age Security (OAS), Guaranteed Income Supplement (GIS), and the Québec Pension Plan (QPP). These changes aim to give Canadian seniors more financial stability in retirement.
Whether you’re approaching retirement, helping a family member plan, or advising clients as a financial professional, understanding what benefits are available—and how to claim them—is key.
Canada Adds New Pension Support
| Program | 2025 Update | Maximum Benefit | Key Eligibility | Official Source |
|---|---|---|---|---|
| CPP | Enhanced to cover 33.33% of income | Based on earnings (up to $1,364/month avg) | Canadians 60+ with contributions | Canada.ca |
| OAS | Up to 10% more for 75+ | $727.67 (65–74) / $800.44 (75+) | Canadians 65+ | |
| GIS | Up to $1,086.88/month for low-income seniors | $1,086.88 (single) / $654.23 (per partner) | OAS recipients with low income | |
| QPP | Matches CPP in structure | Based on contributions | Québec residents |
In 2025, Canada’s retirement programs are stronger and more generous than ever. With higher pensionable earnings, better replacement rates, and new top-ups, seniors can expect more stable retirement income—especially when combining CPP or QPP with OAS and GIS.
Understanding the Canada Pension Plan (CPP) Enhancements
CPP is a monthly payment for Canadians who worked and made contributions. In 2025, CPP is more generous than ever, especially for younger contributors.
What’s New in 2025:
- Maximum Pensionable Earnings (YMPE): $71,300
- Second Tier (YAMPE): Additional contributions on income up to $81,200
- Contribution Rates:
- Employees/Employers: 5.95% (YMPE) + 4.00% (YAMPE range)
- Self-employed: 11.90% + 8.00%
Pro Tip:
The more you contribute, the more you can receive. Deferring CPP past age 65 boosts your monthly payments by 0.7% per month—a 42% increase if you wait until 70.
Old Age Security (OAS): Stability for All Canadians 65+
OAS is not based on work history, but how long you’ve lived in Canada after age 18. It’s available even if you didn’t work.
2025 Monthly Payments:
- Ages 65–74: $727.67
- Ages 75+: $800.44 (thanks to a 10% boost in 2022)
OAS Clawback Alert:
If your annual income is over $86,912, OAS begins to be reduced. Full clawback happens at ~$142,609 (65–74) or ~$148,179 (75+).
Increase OAS with Delays:
Postponing OAS up to age 70 adds 0.6% per month, up to 36% more.
Guaranteed Income Supplement (GIS): For Low-Income Seniors
If you’re receiving OAS and have little to no income, GIS can give you tax-free monthly support.
2025 GIS Payments:
- Single seniors: $1,086.88/month
- Couples (both on OAS): $654.23/month each
Eligibility:
Your income must be below certain limits (e.g., below ~$21,624 for singles).
Québec Pension Plan (QPP): CPP’s Francophone Twin
Living in Québec? You’ll get the QPP instead of the CPP. It works the same way, with slightly different contribution rates.
2025 QPP Contribution Rates:
- Employees/Employers: 6.40%
- Self-Employed: 12.80%
- Income Range: $3,500 – $71,300
Just like CPP, the QPP now replaces 33.33% of average income for contributors.
Additional Supports You Might Be Missing
Besides the main benefits, there are two more programs for people aged 60–64:
- Allowance: For low-income individuals whose spouse/common-law partner receives GIS and OAS.
- Allowance for the Survivor: For widowed low-income individuals who haven’t remarried or entered a new relationship.
These are often overlooked, but they can add hundreds per month.
6. Professional Planning Tips for Maximizing Retirement Income
Use the Retirement Income Calculator:
Want to know exactly what you’ll get? Try the Government of Canada Retirement Calculator. It’s free and updated for 2025 figures.
Timing Is Everything:
- Deferring benefits = higher monthly payments
- Combining CPP/QPP + OAS + GIS can now provide over $3,000/month for low-income seniors.
Canada’s $7,999 Caregiver Credit in 2025: Full Payment Dates and How to Claim It!
New Rules Under Canada’s New Prime Minister: What Happens to Your Pension and Benefits?
FAQs on Canada Adds New Pension Support
1. How much CPP will I get at 65 in 2025?
The average is about $758/month, but with full contributions and maximum deferral, it could be over $1,300/month.
2. Can I get both CPP and QPP?
No—you receive either CPP or QPP depending on where you contributed.
3. Is GIS taxable?
No. GIS payments are tax-free, unlike CPP and OAS.
4. What if I move outside Canada?
You can still receive CPP and QPP abroad. OAS eligibility depends on your time living in Canada.
