OAS and CPP payments to roll out Wednesday. How much will seniors get?

Canadian seniors are set to receive the latest pension payments from the federal government this week.

The February payments for the old age security (OAS) pension and the Canada Pension Plan (CPP) retirement pension will roll out to eligible Canadians on Wednesday.

OAS and CPP are monthly and taxable benefits that have risen by up to 20 per cent in the last five years to keep pace with the rising cost of living

Each month, the OAS pension goes out to eligible Canadians aged 65 years or older. Employment status is not a requirement.

The OAS pension amount is based on a person’s age, how long they’ve lived in Canada as an adult and their income.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Sign up for weekly money newsletterSign Up

By providing your email address, you have read and agree to Global News’ Terms and Conditions and Privacy Policy.

OAS amounts are reviewed each year in January, April, July and October to reflect cost-of-living increases, as measured by the Consumer Price Index (CPI).

OAS payments for the January to March 2025 quarter are the same as last quarter since the CPI did not increase over the previous three-month period, according to Employment and Social Development Canada.

The amounts have gone up by two per cent compared with last year.

For the month of February, the maximum amount seniors aged 65 to 74 could receive is $727.67. In order to be eligible for the OAS payment, a person’s annual net world income in 2023 must be less than $142,609.

For Canadians aged 75 and older, the maximum monthly payment is set to be $800.44, provided their annual net world income in 2023 was less than $148,179.

“If your income is higher than $86,912 (2023), you will have to repay part or your entire Old Age Security pension,” the government says.

On top of the pension, seniors and their partners may also be eligible for extra benefits such as the guaranteed income supplement, allowance and the allowance for the survivor under the OAS program. These three benefits are non-taxable.

The CPP retirement pension goes to seniors at least 60 years of age who have made at least one valid contribution to the CPP.

This taxable benefit replaces part of a person’s income when they retire and is paid till the end of their life.

The CPP amount depends on the age a person starts their pension, their CPP contribution and their average earnings.

For this year, the maximum monthly amount of the CPP retirement pension is set at $1,433 if the pension is started at age 65.

The next OAS and CPP payments will go out on March 27.