If you’re a Canadian senior planning for retirement or already receiving pension payments, you’ve likely heard the figures \$1,620, \$1,950, and \$2,700 discussed in relation to monthly retirement income. These are not just estimates—they reflect common combinations of Canada’s three major public retirement programs: Canada Pension Plan (CPP), Old Age Security (OAS), and the Guaranteed Income Supplement (GIS).
Here’s a detailed breakdown of where these amounts come from, who qualifies, and how you can maximize your retirement income.
Retirement Overview: Where These Numbers Come From
The monthly totals of \$1,620, \$1,950, and \$2,700 are based on combinations of the three federal benefits. Each amount reflects a different personal financial scenario, depending on work history, age, and supplemental income.
| Benefit Type | Monthly Max (2025) |
|---|---|
| CPP (Age 65) | \$1,433.00 |
| CPP (Average Payout) | ~\$808.14 |
| OAS (Ages 65–74) | \$727.67 |
| OAS (Age 75+) | \$800.44 |
| GIS (Low-Income Single) | \$1,086.88 |
| Next Payment Date | June 28, 2025 |
What Is CPP? [Canada Pension Plan Basics]
CPP is a contribution-based public pension. You contribute through payroll deductions during your working life, and your monthly payment in retirement depends on how much—and for how long—you paid into the plan.
Key CPP Details:
- You can start receiving CPP as early as age 60
- Full amount is paid at age 65
- Payments increase by 0.7% per month if you delay past 65 (up to 42% more by age 70)
- CPP also includes disability, survivor, and children’s benefits
What Is OAS? [Old Age Security Explained]
Unlike CPP, OAS is a residency-based benefit, not tied to your work history. It’s funded through general tax revenue and is available to nearly all Canadian seniors.
OAS Eligibility and Benefits:
- Begins at age 65
- Must have lived in Canada for at least 10 years after age 18
- You may receive OAS abroad if you meet the residency requirement
- Clawback applies if your income exceeds \$86,912 in 2025
Seniors over 75 receive an increased benefit automatically starting in 2025.
What Is GIS? [Guaranteed Income Supplement for Low-Income Seniors]
GIS is a non-taxable supplement added to OAS for seniors with little or no other income.
GIS Details:
- Only available if you’re already receiving OAS
- Income threshold for singles: below ~\$21,456 annually
- Amount varies by marital status and combined income
- Must apply via Service Canada
GIS can significantly boost the monthly income for seniors with minimal savings or private pensions.
Common Payment Scenarios for Seniors in 2025
\$1,620/month Scenario
- CPP (Average): ~\$820
- OAS (Ages 65–74): \$727.67
- Total: ~\$1,620/month
This is typical for a senior who had consistent employment and is now receiving both CPP and OAS.
\$1,950/month Scenario
- CPP (Higher Contributor): ~\$1,150
- OAS (Age 75+): \$800.44
- Total: ~\$1,950/month
This applies to seniors who earned more over their lifetime and benefit from the 75+ OAS increase.
\$2,700/month Scenario
- CPP (Maximum): \$1,433.00
- OAS (75+): \$800.44
- GIS (Low Income): \$1,086.88
- Total: ~\$2,700/month
This is possible for low-income seniors receiving the maximum from all three programs—ideal for those without private pensions or savings.
Who Qualifies and How to Apply
CPP Requirements:
- Be at least 60 years old
- Have made at least one valid contribution
- Apply online or via mail through My Service Canada Account
- Early application reduces monthly payments; delaying increases them
OAS Requirements:
- Be 65 or older
- Have lived in Canada for at least 10 years after age 18
- Some are automatically enrolled, others must apply
- Portable if you move abroad (with conditions)
GIS Requirements:
- Must already receive OAS
- Income must be below GIS thresholds
- Application required through Service Canada
CPP & OAS Payment Date: June 28, 2025
All three benefits—CPP, OAS, and GIS—are paid on the last business day of the month. For June 2025, the payment date is June 28. To ensure your payment arrives on time, keep your banking details up to date in your My Service Canada Account.
How to Maximize Your Retirement Income
1. Delay CPP for Bigger Monthly Payments
Each month you delay after 65, your CPP increases by 0.7%, totaling up to 42% more by age 70.
2. Review Your Contribution Record
Log in to My Service Canada to verify your CPP contributions and projected payout.
3. Avoid the OAS Clawback
If your income exceeds \$86,912 in 2025, your OAS will be reduced. Consider income-splitting or withdrawing RRSPs strategically to stay below this threshold.
4. Apply Early
Submit your CPP and OAS applications at least 6 months before your desired start date to avoid delays.
5. Split CPP with Your Spouse
If you and your spouse both receive CPP, consider splitting benefits to reduce taxable income—potentially avoiding the OAS clawback.
