$1700 Monthly for Canadian Seniors in 2026: How CPP and OAS Can Boost Your Retirement Income

If you are a senior living in Canada or planning to retire soon, 2026 brings encouraging news. Through a combination of the Canada Pension Plan (CPP) and Old Age Security (OAS), eligible seniors may receive up to $1,700 per month, and in some cases even more.

The exact amount you receive depends on your age, income level, contribution history, and when you choose to start collecting benefits. Understanding how these programs work is essential for making smart retirement decisions and maximizing your monthly income

Why CPP and OAS Matter for Retirement Planning

CPP and OAS form the backbone of Canada’s public retirement system. Together, they provide predictable, monthly income designed to help seniors cover everyday expenses such as housing, food, utilities, and healthcare.

While they are often discussed together, CPP and OAS are very different programs, each with its own rules, eligibility requirements, and payment calculations.

Key CPP and OAS Amounts for 2025 at a Glance

Here is a snapshot of the most important figures Canadian seniors should know for 2025:

• CPP (Age 65, Maximum): $1,433.00 per month
• CPP (Average New Retiree): $899.67 per month
• OAS (Ages 65–74): $727.67 per month
• OAS (Ages 75+): $800.44 per month
• Combined Maximum (CPP + OAS): $2,233.44 per month

Not everyone will receive the maximum, but many seniors can significantly increase their income with careful planning.

Understanding the Canada Pension Plan (CPP)

The Canada Pension Plan is a contributory pension, meaning the amount you receive is based on what you paid into the system during your working years. Contributions are automatically deducted from most paycheques, and self‑employed workers contribute when filing taxes.

CPP Eligibility Requirements

You may qualify for CPP if:

• You are at least 60 years old, and
• You have made at least one valid CPP contribution during your working life

Even small or short‑term contributions can make you eligible, though the payment amount will vary.

How CPP Payments Are Calculated

Your CPP monthly payment depends on several factors:

• How much you contributed
• How long you contributed
• Your average earnings over your career
• The age you start collecting CPP

Because of these variables, no two CPP payments are exactly the same.

When to Start CPP and How Timing Affects Your Income

You can start CPP as early as age 60, but doing so reduces your monthly payment. On the other hand, delaying CPP past age 65 increases your benefit by about 8.4% per year, up to age 70.

This means seniors who delay CPP to age 70 can receive significantly higher lifetime payments, especially if they expect to live longer.

CPP Payment Dates for 2025

CPP is paid once per month, usually near the end of the month. For 2025, payment dates are:

• January 29
• February 26
• March 27
• April 28
• May 28
• June 26
• July 29
• August 27
• September 25
• October 29
• November 26
• December 22

CPP payments are typically deposited directly into your bank account.

What Is Old Age Security (OAS)?

Old Age Security is different from CPP because it is not based on work or contributions. Instead, it is funded by general tax revenue and depends on your age and how long you have lived in Canada.

OAS Eligibility Rules Explained

You may qualify for OAS if you:

• Are 65 years or older
• Are a Canadian citizen or legal resident
• Have lived in Canada for at least 10 years after age 18

If you lived or worked outside Canada, you may still qualify under international social security agreements.

OAS Monthly Payment Amounts in 2025

As of mid‑2025, OAS payments are structured as follows:

• Ages 65 to 74: $727.67 per month
• Ages 75 and older: $800.44 per month

The higher payment for seniors aged 75+ reflects increased living and healthcare costs later in life.

Understanding the OAS Clawback (Recovery Tax)

OAS is subject to a recovery tax, often called the clawback. If your annual net income exceeds $90,997, some or all of your OAS payments may be reduced.

Higher‑income seniors should carefully plan withdrawals from RRSPs and other income sources to minimize clawback risk.

OAS Payment Dates for 2025

OAS is paid on the same dates as CPP, making it easier for seniors to track income:

• January 29
• February 26
• March 27
• April 28
• May 28
• June 26
• July 29
• August 27
• September 25
• October 29
• November 26
• December 22

Applying for CPP: What You Need to Know

CPP is not automatic, so you must apply. You can do this:

• Online through your My Service Canada Account
• By mail using a paper application

It is strongly recommended to apply at least six months before you want payments to start.

How to Apply for OAS

Some Canadians are automatically enrolled for OAS. If you are not:

• Check your My Service Canada Account
• Apply online or by paper
• Apply around six months before your 65th birthday

Missing the application window can delay payments.

Taxes on CPP and OAS Payments

Both CPP and OAS are taxable income. Each year, you will receive:

• T4A(P) for CPP
• T4A(OAS) for OAS

These slips must be included in your annual tax return.

Additional Benefits You May Qualify For

Beyond CPP and OAS, some seniors may qualify for extra support:

• Guaranteed Income Supplement (GIS) for low‑income seniors
• Allowance for spouses or survivors aged 60–64

These benefits can add hundreds of dollars per month for eligible households.

Practical Tips to Maximize Your Retirement Income

Here are some important steps seniors should take:

• Review your CPP contribution record
• Consider delaying CPP or OAS if financially possible
• Keep banking information updated
• Watch out for scams—Service Canada will never ask for banking details by text or email

Why Planning Ahead Makes a Big Difference

Retirement income decisions are often permanent, especially when it comes to CPP start dates. Making informed choices can mean thousands of extra dollars over your lifetime.

Whether you are already retired or approaching retirement, understanding CPP and OAS rules gives you greater control and peace of mind.