When planning for retirement, many Canadians look at the combined benefits from the Canada Pension Plan (CPP) and Old Age Security (OAS) to understand how much they will receive. Both CPP and OAS are important sources of income for retirees. This article will explain how much you can expect to get from CPP and OAS combined, and what factors can influence these amounts.
How Much Will You Get as CPP and OAS Combined?
CPP Benefits
The Canada Pension Plan (CPP) provides monthly payments to retirees based on their contributions throughout their working life. The maximum monthly CPP payment you can receive is currently $1,306.57. However, most people receive less than this maximum. On average, new CPP beneficiaries get about $772.71 per month.
If you start receiving CPP benefits at age 70, you could receive more each month. Additionally, if you are receiving a combined survivor’s and retirement pension, you can get up to $1,313.13 per month. For those with a combined disability and survivor’s pension, the maximum is $1,542.77 per month.
Post-retirement benefits are also available, with a maximum of $40.25 per month for 2023.
OAS Benefits
The Old Age Security (OAS) pension is another key benefit for seniors in Canada. If you are between 65 and 74 years old, the maximum OAS payment is $707.68 per month. For those 75 years or older, the maximum increases to $778.45 per month.
In addition, if you qualify, you might receive the Guaranteed Income Supplement (GIS) along with your OAS.
Full Benefits Explained
How to Maximize Your Benefits
To get the full benefits from CPP and OAS, you need to meet certain criteria:
- Contributions: Your CPP benefits depend on how much and for how long you contributed to the plan. The more you contribute, the higher your monthly payments can be.
- Starting Age: Starting your CPP at age 70 can increase your monthly payment. Similarly, delaying your OAS can also lead to a higher benefit, but it’s best to apply before you turn 70 to avoid missing out.
- Post-Retirement Contributions: If you continue working while receiving CPP, you may qualify for additional post-retirement benefits.
- Income Thresholds: If your income exceeds certain limits, you may need to repay some of your OAS benefits.
Using My Service Canada Account
You can check your CPP benefits using the My Service Canada Account. This online tool helps you see how much you can expect to receive and plan accordingly.
Understanding how CPP and OAS benefits work can help you better prepare for retirement. While the maximum amounts are set, individual benefits can vary based on contributions, starting age, and income. By knowing these details, you can make informed decisions about your retirement planning and ensure you get the most out of these important benefits.
1. What is the maximum CPP benefit in 2024?
The maximum CPP benefit you can receive is $1,306.57 per month.
2. How much can I get from OAS if I am over 75?
If you are 75 or older, the maximum OAS payment is $778.45 per month.
3. Can I increase my CPP benefits if I work past age 65?
Yes, working past age 65 and continuing to contribute to CPP can increase your benefits.
4. When should I apply for OAS to get the maximum benefit?
You should apply for OAS before you turn 70 to maximize your benefits.
5. What happens if my income exceeds the OAS threshold?
If your income exceeds the threshold, you may need to repay some of your OAS benefits.
