This year is good news for Canadians who are looking forward to retirement: both the Canada Pension Plan (CPP) and Old Age Security (OAS) payments have gone up, which is a welcome boost to retirees’ monthly incomes. If you qualify, you might see these payments go into your bank account as soon as today. Knowing the details of these benefits can help you make the most of your retirement income and plan your finances.
What is the Canada Pension Plan, and who can get it?
The Canada Pension Plan is a government-run program that gives Canadians a portion of their income when they retire. It is a monthly taxable benefit that lasts for life and gives eligible people financial security for retirement years.
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Who Can Get CPP
To get CPP payments, you must meet the following requirements listed below.
- You have to have made at least one valid payment to the Canada Pension Plan while you were working.
- To be able to get retirement benefits, you have to be at least 60 years old.
- You should know that you can still get CPP payments even if you are under 70 and still working. In fact, paying into the CPP after you retire can actually raise your monthly pension, which is a good reason to stay in the workforce a little longer.
Recent rises in CPP payments
The maximum monthly CPP payment for people who are 65 years old or older has gone up from $1,433 to $1,507.65 as of January 2026. This rise takes into account inflation and makes sure that retirees can still buy essential things.
As of October 2026, the average monthly CPP payment for new beneficiaries who are 65 years old is $803.76. This is a little less than last year’s average of $899.67, which shows how different contributions and years of work can be.
On Wednesday, February 25, 2026, eligible Canadians should get their CPP payments for February month.
What you need to know about Old Age Security (OAS)
The Old Age Security pension is a government benefit that Canadians aged 65 and older can get, no matter what kind of work they have done in the past. OAS is a crucial safety net for many retirees because it doesn’t require contributions from work like CPP does.
Requirements to Get OAS
To be eligible for OAS while living in Canada:
- You have to be at least 65 years old.
- You must be a legal resident or citizen of Canada when your application for a pension is approved.
- You must have resided in Canada for at least 10 years since the age of 18.
For Canadians who live outside of Canada:
- You have to be the same age requirement.
- You had to be a citizen or resident of Canada the day before you left.
- You must have lived in Canada for at least 20 years since you turned 18.
Payments from OAS go up in 2026.
In January 2026, the OAS payment also went up. For retirees between the ages of 65 and 74, the most they can get each month is $742.31, up from $727.67. This is true for people whose net income in 2024 was less than $148,451.
The maximum monthly OAS payment for people 75 and older is now $816.54, up from $800.44. This is for people whose annual net income in 2024 was less than $154,196.
These increases make sure that seniors get the benefits of inflation adjustments and more help to pay for their living costs daily.
When to Make Your Payments
People in Canada who qualify for either CPP or OAS should check the specific deposit dates each month to help them plan their money. Payments are usually due on the last Wednesday of the month, but the exact dates may change if there are holidays or weekends. Keeping up with these schedules will help you handle bills savings and other retirement costs better.
How working after you retire can help your CPP
If you keep working while getting CPP payments regularly, your monthly benefit may go up. If you make contributions to your pension after you retire, they will be added to your pension. This could mean that you get a bigger payment when you turn 70, which is the maximum age for CPP contributions. This plan can be very useful for retirees who want to make their long-term financial situation better.
Timing is Everything for Getting the Most Out of It
- If you want to get CPP early, apply at 60, but know that the monthly amount will be lower.
- If you wait until 65 or even 70 to get CPP benefits, you’ll get a higher monthly benefit.
- Keep working after you retire to slowly raise your pension.
Canadians can get the most out of their lifetime CPP payments and make their retirement income more stable by carefully planning when to start getting benefits.
Making plans for OAS and the Pension Recovery Tax
OAS gives seniors with low incomes a lot of help, but seniors with higher incomes may have to pay the OAS clawback which is also known as the pension recovery tax.
If your net income is above a certain level, you will have to pay this tax, which will lower the amount of OAS you get.
The highest amount for 2026 is $148,451 for people between the ages of 65 and 74 and $154,196 for people 75 and older.
Knowing how much you might have to pay back to the OAS can help you plan your retirement better, including ways to lower your taxable income or delay payments if you need to.
More government benefits to look into
Canadians may be able to get help from other government programs for seniors in addition to CPP and OAS. These include:
- Guaranteed Income Supplement (GIS) for seniors with low incomes.
- Allowances for the spouses or partners of people who qualify for OAS.
- Health benefits and extra money from the province.
Keeping track of all the programs that are available to you will help you get the most financial help possible.
Last Thoughts
In 2026, big changes will be made to Canada Pension Plan and Old Age Security payments. These changes will make seniors finances more stable. Knowing the eligibility requirements, payment schedules, and ways to get the most out of your benefits can make a big difference in how you plan for retirement. You can make sure that your financial future is stable and comfortable by carefully planning your contributions, choosing the right time to start your CPP, and staying up to date on OAS rules regularly.
