How much CPP will I get when I retire?

Maximum CPP at age 65 is $1,433/month (2026), but average is about $815/month. Your amount depends on how much and how long you contributed. Start before 65 and you get less; after 65 and you get more.

What is the difference between CPP and OAS?

CPP is based on your work contributions. OAS is based on how long you've lived in Canada (40 years for full amount). Both are available from age 65, but CPP can start as early as 60.

CPP and OAS Guide 2026: Canadian Retirement Benefits Explained

CPP and OAS are the foundation of Canadian retirement income. Together they can provide over $24,000/year. Here’s how to maximize your benefits.

CPP and OAS Overview

Benefit	What It Is	Max (2026)
CPP	Based on work contributions	$1,433/month at 65
OAS	Based on residence in Canada	$760/month
GIS	Low-income supplement	$1,086/month

Canada Pension Plan (CPP)

Maximum CPP Benefits (2026)

Age Started	Monthly	Annual
60	$1,003	$12,036
65	$1,433	$17,196
70	$2,035	$24,420

Average CPP Payments

Measure	Monthly
Maximum (age 65)	$1,433
Average (all recipients)	$815
Average (new at 65)	$925

Most people don’t get maximum — depends on contributions.

CPP Early vs Late

When to Start	Adjustment
Age 60	-36% (0.6%/month × 60 months)
Age 65	Base amount
Age 70	+42% (0.7%/month × 60 months)

Break-Even Analysis

Start Age	Break-Even vs 65
60	Age 74
70	Age 82

If you live past these ages, the later start pays off.

CPP Eligibility

Requirement	Details
Contribution years	At least 1 valid contribution
Start age	60-70
Working while receiving	Can still work and contribute

CPP Enhancement

Feature	Details
Started	2019
Effect	Higher contributions = higher benefits
Full enhancement	Starting 2065
Extra benefit	Up to 50% more (future retirees)

Old Age Security (OAS)

OAS Amounts (2026)

Situation	Monthly
Full OAS (65-74)	$760
Full OAS (75+)	$836

OAS Eligibility

Requirement	Full OAS	Partial OAS
Years in Canada	40	10+
Calculation	—	1/40 per year
Living abroad	20 years in Canada required	Not eligible

OAS Deferral

Deferral	Increase
Per month (after 65)	0.6%
Per year	7.2%
Maximum (age 70)	36%

Age 70 OAS: $760 × 1.36 = $1,034/month

OAS Clawback (Recovery Tax)

Net Income	Clawback
Below $90,000	No clawback
$90,000-$148,000	15% of excess
Above $148,000	Full clawback

Example: $100,000 income = ($100,000 - $90,000) × 15% / 12 = $125/month clawback

Guaranteed Income Supplement (GIS)

Who Qualifies

Requirement	Details
Receiving OAS	Yes
Income threshold	Low income
Single max income	~$21,000
Couple max income	~$28,000

GIS Amounts (2026)

Situation	Maximum Monthly
Single person	$1,086
Couple (both OAS)	$654 each

GIS is income-tested and reduces as income rises.

Retirement Income Planning

Combined Government Benefits (Age 65)

Benefit	Monthly	Annual
CPP (average)	$815	$9,780
OAS (full)	$760	$9,120
Total	$1,575	$18,900

With Maximum CPP

Benefit	Monthly	Annual
CPP (max)	$1,433	$17,196
OAS (full)	$760	$9,120
Total	$2,193	$26,316

When to Start CPP

Take Early (Age 60) If:

Reason
You need the income now
Health concerns
Want to reduce other taxable income
Can invest and earn >8%

Take Late (Age 70) If:

Reason
Good health, expect longevity
Have other income to bridge
Want to maximize guaranteed income
Concerned about outliving savings

Take at 65 If:

Reason
Standard choice
Average health
Balanced approach

CPP Survivor Benefits

Benefit	Amount
Surviving spouse (under 65)	Up to 37.5% of contributor’s CPP
Surviving spouse (65+)	Up to 60% of contributor’s CPP
Children of deceased	$294/month
Death benefit	$2,500 (lump sum)

CPP Pension Splitting

After 65, you can split CPP with spouse:

Must both be 60+
Up to 50% can transfer
Reduces higher earner’s income
May help avoid OAS clawback

Working While Receiving Benefits

Working and CPP

Age	Work Impact
60-64	Can receive CPP and still contribute
65-70	Can opt out of contributions
Post-Retirement Benefit	Additional benefit for contributions

Working and OAS

Age	Work Impact
65+	Work earnings don’t reduce OAS
—	But income may trigger clawback

Applying for Benefits

CPP Application

Timing	Details
Apply	6-12 months before you want to start
Online	My Service Canada Account
Phone	1-800-277-9914
Processing	~4-6 weeks

OAS Application

Timing	Details
Auto-enrollment	Many are enrolled automatically
If not auto-enrolled	Apply 6-12 months before 65
Online	My Service Canada Account

Bottom Line

Benefit	Strategy
CPP	Delay if healthy (42% increase at 70)
OAS	Delay if high income (avoid clawback)
GIS	Apply if low income
Pension splitting	Use after 65 if beneficial

Key tips:

Check your CPP statement (My Service Canada)
Delaying benefits increases them permanently
Consider tax planning around OAS clawback
Survivor benefits can help your spouse
Apply early — processing takes time
Government benefits are just the foundation — RRSP/TFSA still needed

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