In 2025, Canadian seniors can expect welcome increases to their Old Age Security (OAS), Canada Pension Plan (CPP), and Guaranteed Income Supplement (GIS) payments. These adjustments come as part of the federal government’s continued efforts to help seniors manage the rising cost of living driven by inflation, housing expenses, and healthcare needs.

Whether you’re already retired or planning your retirement strategy, understanding these changes is key to managing your financial future.

Why Are OAS, CPP, and GIS Payments Increasing in 2025?

Canada’s pension programs are regularly adjusted to reflect changes in the economy—particularly inflation. As prices for essentials like groceries, fuel, and housing continue to climb, the federal government indexes senior benefits to ensure they retain their purchasing power. These increases are more than policy updates—they’re lifelines for millions of older Canadians who rely on government support for day-to-day expenses.

Quick Overview: 2025 Payment Increases

Understanding the Components of Canada’s Pension System

Canada offers three main public programs that work together to support older adults financially:

Old Age Security (OAS)

OAS is a monthly pension paid to individuals aged 65 and over, regardless of their work history. Eligibility is based on how long you’ve lived in Canada after turning 18, and the benefit is funded from general tax revenues—not individual contributions.

Canada Pension Plan (CPP)

CPP is a work-based pension that requires contributions during your working years. The amount you receive is directly tied to how much—and how long—you contributed. The standard age to begin CPP is 65, but payments can start as early as 60 or be deferred until 70, with adjustments based on timing.

Guaranteed Income Supplement (GIS)

GIS provides additional income to low-income seniors who receive OAS. It’s designed to ensure vulnerable seniors can afford basic living expenses. The amount varies depending on marital status and income.

Detailed Breakdown of 2025 Increases

Old Age Security (OAS) Payment Increase

In 2025, seniors aged 75 and older will receive a 10% increase in their OAS payments. This boost continues a measure introduced by the government in 2022 to address the specific financial needs of older seniors.

• Seniors aged 65 to 74: Maximum OAS payment will be $727.67 per month

• Seniors aged 75 and over: Maximum OAS payment will rise to $800.44 per month

This increase acknowledges that seniors over 75 often face higher healthcare costs, increased reliance on fixed incomes, and greater financial vulnerability.

Canada Pension Plan (CPP) Increase

The CPP benefit will increase by 2.6% in 2025, reflecting the Consumer Price Index (CPI) and designed to preserve the value of your retirement income amid inflation.

• The maximum monthly CPP payment for those starting at 65 will rise from $1,306.57 (2024) to approximately $1,350 in 2025

• If you’re receiving $1,000/month in 2024, your new payment would increase to $1,026

This inflation-linked adjustment ensures that CPP keeps pace with economic conditions, helping recipients maintain their lifestyle.

Guaranteed Income Supplement (GIS) Increase

The GIS is designed to support the most financially vulnerable seniors. In 2025, payments will see a slight but meaningful increase.

• Single individuals will receive up to $1,086.88 per month

• Couples (both receiving OAS) may receive $654.23 each in GIS

Though the GIS increase may seem small, it’s a crucial support for seniors living on limited incomes.

How These Increases Affect Canadian Seniors

These adjustments bring several practical benefits:

1. Offset the Effects of Inflation

With inflation impacting essentials like groceries, utilities, and medications, higher pension payments help seniors maintain their standard of living without sacrificing critical needs.

2. Improved Financial Security

For many seniors, OAS, CPP, and GIS are their primary sources of income. Increases in 2025 mean more predictable and secure financial planning for fixed-income households.

3. Addressing Income Disparity

The GIS increase specifically targets low-income seniors, offering added protection for those who may not have significant retirement savings or employer pensions.

Tips to Maximize Your Pension Benefits in 2025

Check Your Payments Regularly

Ensure that your payments reflect the updated amounts by checking your monthly statements or logging into your My Service Canada Account.

Review and Adjust Your Budget

Now is a good time to revisit your personal or household budget. The increase may help you cover rising expenses or allow for small savings toward health, home, or emergency needs.

Plan for Healthcare Costs

Medical needs often increase with age. Consider allocating a portion of your increased pension toward insurance, dental, prescriptions, or mobility aids.

Explore Additional Government Programs

Programs like the Seniors Home Safety Tax Credit, Property Tax Deferral, and provincial pharmaceutical coverage may offer additional financial relief.

Delay Payments for Higher CPP or OAS

If you’re still under 70 and don’t urgently need the income, delaying your CPP or OAS start date could result in larger monthly benefits. Speak with a retirement planner to weigh your options.

Frequently Asked Questions (FAQs)

Q1: How do I qualify for Old Age Security (OAS)?
You must be 65 or older and have lived in Canada for at least 10 years after the age of 18. To receive the full benefit, you typically need 40 years of residency.

Q2: What determines how much I receive from CPP?
Your CPP amount depends on how much and how long you contributed to the program. Higher contributions over more years generally result in a higher monthly payment.

Q3: Can I receive GIS while living abroad?
Generally, GIS is only available to those living in Canada. Some exceptions apply if you’re in a country with a social security agreement with Canada.

Q4: Can I receive OAS and CPP at the same time?
Yes. Most seniors receive both. OAS is residence-based, while CPP is contribution-based.

Q5: When will the first increased payments be made in 2025?
The first monthly pension payments reflecting the 2025 increases will be made by late January, with OAS scheduled for January 29, 2025.

Final Thoughts

The increases to OAS, CPP, and GIS payments in 2025 are more than just policy adjustments—they represent a tangible step toward protecting the well-being of older Canadians. As the cost of living rises, these enhancements will play a critical role in helping seniors stay financially stable and maintain independence.

Whether you’re already receiving these benefits or planning to apply soon, staying informed and proactive with your retirement finances will help you make the most of what’s available.