Extra Money for Canadian Retirees in 2025—Here’s What’s Coming Beyond CPP, OAS & GIS
Extra Money for Canadian Retirees in 2025: If you’re a Canadian retiree or nearing retirement in 2025, you’ll want to know what extra money is coming your way—beyond CPP, OAS, and GIS. Thanks to federal enhancements and cost-of-living adjustments, seniors in Canada can expect to receive higher retirement income, increased support for low-income households, and greater flexibility in how and when they access their benefits.
This article breaks down what’s new for Canadian retirees in 2025, including how much you can receive, how to qualify, and how these benefits affect your long-term financial well-being.
Extra Money for Canadian Retirees in 2025
| Benefit | Maximum Monthly Amount | Eligibility | Important Notes |
|---|---|---|---|
| CPP | $1,433 | Retirees 65+ who contributed | Contributions from both employer & employee (Learn more) |
| OAS | $800.44 | All legal residents 65+ | Increases by 0.6% per month if delayed to age 70 (Official Site) |
| GIS | $1,086.88 | Low-income OAS recipients | Not taxable, income-tested (Eligibility Guide) |
| COLA Adjustment | 2.7% | Applied to CPP, OAS, GIS | Maintains purchasing power (Government Source) |
| May 2025 Payment Date | May 28, 2025 | For all eligible programs | Direct deposit preferred |
The retirement landscape in Canada is changing—for the better. With increased CPP benefits, boosted OAS payments, and non-taxable GIS support, 2025 brings tangible financial improvements for seniors across the country. Whether you’re already retired or planning for it soon, understanding these programs can help you make smarter, more strategic choices. Be proactive, stay informed, and take full advantage of the resources and support available to you.
Understanding the Big Three: CPP, OAS, and GIS
Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) is a contributory social insurance program. It provides a stable, monthly income to retirees who have contributed during their working years. Starting in 2019, CPP underwent major enhancements to increase retirement income.
Key Details:
- Maximum benefit (2025): $1,433/month at age 65
- Contribution rate: 5.95% each from employee and employer
- Maximum pensionable earnings: $71,300 (with a $3,500 basic exemption)
- Enhancement goal: Raise the income replacement rate from 25% to 33.33%
Old Age Security (OAS)
The Old Age Security (OAS) is a non-contributory monthly pension for Canadians aged 65 or older, funded through general tax revenues.
Key Details:
- Ages 65–74: $727.67/month
- Ages 75+: $800.44/month (includes the recent 10% increase for seniors 75+)
- Deferral Bonus: Get 0.6% more per month delayed—up to a 36% increase at age 70
- Clawback threshold: Starts at $93,454 and ends at $151,668–$157,490
Guaranteed Income Supplement (GIS)
The Guaranteed Income Supplement (GIS) is a non-taxable benefit provided to low-income seniors already receiving OAS.
Key Details:
- Maximum monthly benefit (2025): $1,086.88
- Eligibility: Annual income below approx. $21,000 for singles
- Combined OAS + GIS: Over $1,800/month for qualifying seniors
Cost-of-Living Adjustments (COLA) for 2025
In 2025, all three major federal retirement programs—CPP, OAS, and GIS—are indexed to inflation at a rate of 2.7%. That means your payments will increase automatically to match the rising cost of essentials like food, rent, and healthcare.
This annual indexing ensures retirees retain their purchasing power, even as inflation eats into savings
When Are Payments Made?
For May 2025, CPP, OAS, and GIS payments will be issued on Wednesday, May 28, 2025.
- Opt for direct deposit to receive your funds quickly and securely
- Payment dates are usually the third or fourth last business day of each month
Planning for Retirement: Practical Tips
Delay Benefits Strategically
If you’re in good health and can afford to wait, consider delaying CPP or OAS to receive higher monthly payments.
Monitor Your Income
Avoid triggering OAS clawbacks or losing GIS by staying under key income thresholds. Use registered tax-free accounts (like TFSA) to manage withdrawals.
Claim All Your Credits
Look into provincial supplements, housing benefits, and senior tax credits in your province.
Use an Advisor
Even a one-time consultation with a retirement planner can help ensure your income sources are tax-efficient and fully optimized.
Seniors Alert: $2,500 Monthly CRA Deposit Incoming – Check Eligibility Now
Canada’s $250 GST Relief Payment in 2025: Who’s Eligible to Get It? Check Payment Dates!
New Canada Carbon Rebate Just Announced – See If You’re Getting a Payout!
FAQs on Extra Money for Canadian Retirees in 2025
Can I receive CPP and OAS at the same time?
Yes. Most Canadians qualify for both, and the payments are issued on the same day each month.
Is GIS taxable?
No. GIS is a non-taxable income supplement and does not need to be reported as income on your tax return.
What happens if I delay CPP or OAS?
Delaying CPP increases it by 0.7% per month (up to 42% at age 70). OAS increases by 0.6% per month, maxing at 36% at age 70.
Do COLA increases happen automatically?
Yes. You don’t need to apply. Payments are automatically adjusted each January based on the Consumer Price Index (CPI).
What are the best ways to avoid OAS clawback?
- Use TFSAs instead of RRSPs for retirement income
- Keep income below the annual threshold
- Consider income-splitting with your spouse
