$815 to $1,364: Canada Retirement Pension May 2025: Retiring in Canada means that you are now going to start a new chapter of your life. During this time, it is very important to maintain financial security. In May 2025, the Government of Canada provides income support under three main pension programs: Canada Pension Plan (CPP), Old Age Security (OAS) and Guaranteed Income Supplement (GIS). Through these three, you can get from $815 to $1,364 every month. Let us understand in detail in this article who can avail these benefits, how much and how will be available, and how you should prepare.
Canada Pension Plan (CPP)
What is CPP and why is it important?
CPP is a contribution-based government scheme. The amount of income you have paid as tax for CPP during your career, the same amount of benefit you will get at the time of retirement. It is designed to supplement a part of your current income, so that there is no reduction in the cost of living even after retirement.
CPP amount for May 2025
- Maximum monthly pension: $1,433 (for those who have been making maximum contributions)
- Average for new beneficiaries: About $808
The amount depends on your total eligibility, contribution amount, and the age at which you start your pension.
Eligibility rules
- Must be at least 60 years of age.
- You must have made at least one valid contribution to the CPP at any time.
- If you are self-employed, you must have paid the full CPP portion (both the worker and employer portions) on work income.
Choosing a starting age at an older age
- 60 to 65: Earnings are reduced by 0.6 percent each month. That means you’d be about 36 percent less overall if you started at 60 instead of exactly 65.
- 65 to 70: Earnings increase by 0.7 percent each month. That means starting at age 70 can give you about 42 per cent more.
For example, if your full pension is $1,433, stopping at 60 gives you about $916, while at 70 it increases to about $2,037.
Application and payment
- Open “My Service Canada Account” for CPP on the Service Canada website.
- Fill out the application online, upload the required documents (social insurance number, bank account details, identity card).
- Payments are usually directly credited to your bank account on the last working day of each month. In May 2025, this date is May 28, 2025.
Personal example
Sharma ji worked for 35 years and made the maximum CPP contributions. He received his pension at age 67. His full pension of $1,433 also received inflation adjustment for 14 months’ worth, so he now receives about $1,500 per month.
Old Age Security (OAS)
Purpose of OAS
OAS is meant to help people who did not contribute based on earnings but have lived in Canada for a long time. It is available to anyone who is at least 65 years old and a Canadian citizen or legal resident.
Amount of OAS for May 2025
- 65–74 years: Maximum $727.67 per month
- 75 years and above: Maximum $800.44 per month
This amount adjusts every quarter according to the CPI (Consumer Price Index). There are no major changes for April–June 2025.
Eligibility rules
- Must be at least 65 years of age.
- Must be a Canadian citizen or legal resident.
- Residence in Canada for at least 10 years after turning 18 (40 years if you want the full pension).
OAS clawback rules
If your total annual net income exceeds approximately $87,258 in 2025, you must return some of the OAS. This refund is at the rate of $0.15 per additional dollar. Income above $135,000 may require the full OAS to be returned.
Application and payment
- For OAS, fill out the “Apply for Old Age Security” form through the Service Canada website.
- Once approved, direct deposits will be made each month. The May payment will be due on May 28, 2025.
- If you have not made a deposit earlier, a cheque will also come by mail, which may take time.
Guaranteed Income Supplement (GIS)
What is GIS for?
This is additional support for low-income seniors receiving OAS. GIS is tax-free, meaning you don’t have to pay taxes on it.
GIS payments for May 2025
- Single seniors: up to $1,086.88/month
- Couples: up to $654.23/month each for couples where both receive OAS
- One partner receiving OAS, the other not: Amount depends on total
Eligibility rules
- You must be an OAS recipient.
- Your annual taxable income must be below the government-set limit.
- File your income tax return on time each year to remain eligible for GIS.
How GIS is affected
As your income increases, your GIS decreases.
If you have additional income from investments or property, your GIS will decrease accordingly.
Example
Mrs Patel, who has an annual income of $12,000 from pensions and savings, is receiving almost all of her GIS. But if her income rises to $15,000, about $50 of GIS will be cut for every $1,000.
Other related pension benefits
Allowance
Ages 60 to 64 with a spouse or common-law partner receiving both OAS and GIS may also be eligible for financial support. This works as a bridge grant until you turn 65 and are eligible to receive OAS.
Survivor Allowance
If your spouse dies and you are aged 60–64, this plan may help you get a new GIS. This allowance serves as your financial support until OAS begins.
Additional provincial plans
- The Seniors’ Homeowners’ Property Tax Grant in Ontario gives homeowners a rebate on property taxes.
- The Seniors Supplement in British Columbia helps to top up the minimum monthly income.
- The supplément de revenu for low-income seniors in Quebec.
Check your local service centre or website for provincial plans, as eligibility criteria and application processes may differ.
Tax and financial planning tips
Taxes on OAS and CPP
Both CPP and OAS are taxable income. They are included in your total income.
GIS is tax-free
GIS is tax-free, but you should still be careful about the income it calculates and the tax slab it belongs to.
Pension Splitting
You can share up to 50 per cent of your CPP pension income with your partner. This can reduce your tax liability as your tax eligibility will be balanced.
RRSP, RRIF, TFSA
- Put your savings in a Registered Retirement Savings Plan (RRSP) to save tax.
- Convert your RRSP to a Registered Retirement Income Fund (RRIF) on retirement to get regular income.
- Save in a Tax-Free Savings Account (TFSA), which is completely tax-free.
Pay attention to inflation
The OAS and CPP increase periodically based on the CPI. So you will see a small increase every quarter. Include this increase in your monthly budget plan to avoid sudden changes in expenses.
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Application Process – Step-by-Step
Collecting Documents
- Social Insurance Number (SIN)
- Identification Card (Passport, Driving Licence)
- Residency Proof (PR Card, Citizenship Certificate)
- Bank Account Details (Cheque or Statement)
Online Application
- Log in to the official Service Canada website.
- Choose the “Apply for CPP” and “Apply for OAS” options.
- Fill in the required information on each form and upload the documents.
- For GIS, you will need to fill out a separate form after being approved by OAS.
Offline Options
- If you do not have access to online, visit a Service Canada office and collect the application form and submit it.
- The form can also be sent by mail, but processing time may be longer.
Application Tracking
- Check the status by going to “My Service Canada Account”.
- You will receive notifications by email or mail for any missing or additional information.
Practical tips
- Apply in good time: Application processing can typically take three months, so apply 6–12 months before retirement.
- Consider starting age: Pension amounts increase as you get older, but you will have to support yourself in the meantime.
- Keep your bank account and address up to date: Your bank account and address are important to ensure your pension is paid.
- File your tax returns on time, Especially for GIS, as it records annual income.
- Contact Service Canada: If you have any problems, call toll-free 1-800-277-9914 or use the online chat.
Frequently asked questions (FAQs)
Can I receive both CPP and OAS at the same time?
Yes, if you are eligible for both plans, you can receive both at the same time.
What happens if I start CPP at age 60?
Your pension is reduced by 0.6 per cent each month, which could result in a total reduction of up to 36 per cent.
Is GIS taxable?
No, GIS is completely tax-free.
Do I have to reapply for OAS every year?
OAS is paid regularly once it is approved
Conclusion
Canada’s CPP, OAS, and GIS together provide you with financial security after retirement. Timely application, understanding eligibility, monitoring taxes and inflation, as well as knowledge of provincial plans—all these will keep your monthly income stable. This article will help you understand the retirement payments you will receive in May 2025, ranging from $815 to $1,364. Remember, it is wise to plan and act on time. Good luck!
