Two programs in Canada help seniors with money in retirement: CPP and OAS. These are like pensions you get each month. Knowing how much money you might get from CPP and OAS together is important so you can plan for retirement.
Understanding CPP and OAS
What is CPP?
The Canada Pension Plan (CPP) is a monthly payment you get when you retire. The amount depends on how much you have contributed during your working years. Contributions are taken from your salary.
What is OAS?
Old Age Security (OAS) is a monthly payment you get once you reach 65 years old. It is not based on your employment history. Instead, it depends on how long you have lived in Canada after the age of 18.
Maximum CPP and OAS Benefits
Maximum CPP Benefits
The amount you get from CPP depends on your contributions. As of 2023, the maximum monthly amount you can receive if you start at age 65 is $1,306.57. Most people, however, receive about $772.71 per month. If you delay your CPP until age 70, the amount increases.
| Age | Monthly CPP Amount |
|---|---|
| 65 | $1,306.57 (maximum) |
| 70 | Higher than $1,306.57 |
Maximum OAS Benefits
The OAS payment depends on how long you have lived in Canada. As of 2023, the maximum monthly amount is $707.68 if you are aged 65 to 74. For those over 75, it is $778.45.
| Age | Monthly OAS Amount |
|---|---|
| 65 – 74 | $707.68 (maximum) |
| 75+ | $778.45 (maximum) |
Combining CPP and OAS Benefits
When you combine CPP and OAS, the maximum monthly amount you can receive at age 65 is $2,014.25. If you are over 75, the maximum is $2,085.02.
| Age | Monthly Combined Amount |
|---|---|
| 65 – 74 | $2,014.25 |
| 75+ | $2,085.02 |
Factors Affecting Your Benefits
Several factors affect how much you get from CPP and OAS:
- Age When You Start: Starting your CPP at age 70 increases your monthly payment.
- Contribution Amount: More contributions mean higher CPP.
- Living in Canada: The longer you live in Canada, the higher your OAS.
- Additional Benefits: Post-retirement benefits can increase your CPP.
How to Maximize Your Benefits
To get the most from CPP and OAS, consider the following:
- Delay Your CPP: Waiting until age 70 can increase your CPP amount.
- Continue Working: Contributions after age 65 can further increase your CPP.
- Apply Early for OAS: Apply a few months before you turn 70.
Post-Retirement Benefits
If you keep working after starting your CPP, you can get post-retirement benefits. These are additional payments that increase your CPP amount.
| Year | Monthly Post-Retirement Benefit |
|---|---|
| 2023 | $40.25 |
GIS (Guaranteed Income Supplement)
In addition to OAS, you might qualify for the GIS if you have a low income. The GIS is a monthly payment that helps low-income seniors.
Important Considerations
- Income Threshold: If your income is above a certain threshold, you may have to repay part of your OAS.
- Spouse’s Benefits: Delaying OAS can affect your spouse’s GIS allowance.
Conclusion
Understanding how much you can get from CPP and OAS is crucial for retirement planning. By knowing the maximum benefits and how to maximize them, you can ensure a comfortable retirement. Use your My Service Canada Account to check your benefits and plan accordingly.
Summary Table
| Benefit | Maximum Monthly Amount |
|---|---|
| CPP at 65 | $1,306.57 |
| CPP at 70 | Higher than $1,306.57 |
| OAS at 65 – 74 | $707.68 |
| OAS at 75+ | $778.45 |
| Combined CPP+OAS at 65 – 74 | $2,014.25 |
| Combined CPP+OAS at 75+ | $2,085.02 |
| Post-Retirement Benefit (2023) | $40.25 |
| Combined Survivor’s and CPP | $1,313.13 |
| Combined Disability and CPP | $1,542.77 |
This guide provides all the necessary information to understand and maximize your CPP and OAS benefits. Ensure you meet all the criteria and make informed decisions about your retirement plans.