Canada’s pension system is a lifeline for millions of seniors. With the cost of living continuing to rise in 2025, the government has announced increases to three key programs: Old Age Security (OAS), Canada Pension Plan (CPP), and the Guaranteed Income Supplement (GIS). These updates are more than just numbers—they’re a critical part of keeping older Canadians financially secure.
If you’re retired or planning for retirement, you’ll want to know exactly how much these increases will be, when they’ll happen, and how they affect you. In this guide, we’ll break it all down in simple terms.
Table of Contents
Overview
| Pension Type | 2025 Changes | Max Monthly Payment | First 2025 Payment |
|---|---|---|---|
| OAS | 10% increase for 75+ | Up to $800.44 | June 29, 2025 |
| CPP | 2.6% increase | Up to $1,350 | June 2025 |
| GIS | Slight increase | $1,086.88 (single), $654.23 (couple) | Monthly payments |
These increases help seniors keep pace with inflation and make retirement more manageable in 2025.
Canada’s Three-Pillar Pension System
Canada’s retirement income system is made up of three main programs. Each plays a different role in supporting seniors:
Old Age Security (OAS)
This is a monthly payment available to Canadians aged 65 or older. You don’t need a work history to qualify, just enough years living in Canada after age 18.
Canada Pension Plan (CPP)
If you worked in Canada and paid into the system through payroll deductions, you’re eligible for CPP. The more you worked and contributed, the higher your monthly benefit.
Guaranteed Income Supplement (GIS)
GIS helps low-income seniors who receive OAS. It’s a monthly non-taxable payment that provides extra financial support to those who need it most.
OAS Increase for 2025
In 2025, the government will continue with the 10% increase in OAS for seniors aged 75 and older. This is a big deal for older seniors, especially those facing rising healthcare and living costs.
- Seniors aged 65 to 74 will receive up to $727.67 per month.
- Seniors aged 75 and older will receive up to $800.44 per month.
This increase reflects the extra financial pressure faced by older seniors and aims to reduce poverty among this group.
CPP Increase for 2025
CPP is indexed to inflation, and for 2025, payments are going up by 2.6%.
- Maximum CPP payment: $1,350/month (up from $1,306.57 in 2024).
- Example: If you were receiving $1,000/month in 2024, you’ll now receive about $1,026.
The increase isn’t automatic for everyone—it depends on your contributions during your working life. The more you earned and contributed, the more you’ll receive.
GIS Increase for 2025
GIS helps low-income seniors top up their OAS payments.
- Single seniors will receive up to $1,086.88/month.
- Couples where both receive OAS will receive up to $654.23/month each.
GIS is reviewed quarterly and adjusted based on inflation and income. If your income is too high, you may not qualify—but for many seniors, it’s a key part of their monthly budget.
Why These Increases Matter
Inflation isn’t slowing down. Seniors living on fixed incomes feel it the most when prices for food, housing, and medicine go up. These increases help protect purchasing power and maintain financial stability.
Three Reasons These Updates Are Crucial:
- Keep Up with Inflation: Without regular increases, pensions would lose value over time.
- Support Financial Stability: Many seniors rely heavily on these monthly payments to meet basic needs.
- Reduce Inequality: GIS helps those with the lowest incomes, ensuring they’re not left behind.
Tips to Make the Most of Your 2025 Benefits
Double-check your monthly deposits starting June 2025 to ensure the increases are reflected. Use your My Service Canada Account to view statements online.
Budget for Rising Costs
Even with these increases, prices are still going up. Review your spending and prioritize essentials like rent, food, and healthcare.
Additional Savings Options
If you’re still earning or have savings, consider putting money into a Tax-Free Savings Account (TFSA) or Registered Retirement Income Fund (RRIF) for future needs.
Prepare for Healthcare Expenses
Plan for rising medical costs. Look into provincial health programs, dental subsidies, and drug coverage for seniors.
Look Into Other Senior Programs
In addition to OAS, CPP, and GIS, you might qualify for:
- Senior Home Safety Tax Credit
- Housing assistance programs
- Utility relief programs
- Pharmaceutical benefit plans
These can make a big difference in your monthly expenses.
FAQs
When will the 2025 OAS increase start?
OAS increases will begin with the June 29, 2025 payment.
How much will CPP increase in 2025?
CPP will increase by 2.6% in 2025.
Who qualifies for GIS in 2025?
Low-income seniors receiving OAS may qualify.
Is the GIS payment taxable?
No, GIS payments are non-taxable.
Do I need to apply for the OAS increase?
No, it will be applied automatically if you’re eligible.
