CPP & OAS Changes in September 2025: New Rates, Eligibility, and Payment Updates

Retirement income is a critical pillar of financial security for Canadian seniors. Two of the most important programs that support retirees are the Canada Pension Plan (CPP) and Old Age Security (OAS). As the cost of living continues to rise, both CPP and OAS undergo regular adjustments to protect the purchasing power of beneficiaries.

Starting in September 2025, both programs will see increases to monthly payment amounts. These changes are designed to reflect inflation and cost-of-living adjustments. Beneficiaries do not need to apply separately the new rates will automatically be credited to their accounts.

This guide explains the CPP & OAS changes in September 2025, covering new payment amounts, eligibility requirements, indexing rules, and payout dates.

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What is the Canada Pension Plan (CPP)?

The Canada Pension Plan (CPP) is a contributory program funded by workers and employers across Canada. It provides:

• Retirement pensions
• Disability benefits
• Survivor’s benefits

CPP amounts are based on your contributions during your working years and the age you start receiving benefits.

Key September 2025 Update for CPP

• Indexed by 2.6% due to inflation.
• Maximum monthly CPP retirement pension in 2025 is now $1,433.00 (up from $1,364.60 in 2024).

Quick Summary: CPP & OAS Changes September 2025

What is Old Age Security (OAS)?

The Old Age Security (OAS) pension is a non-contributory monthly benefit funded from the Government of Canada’s general revenues. It provides support to seniors aged 65 and older who meet residency requirements.

Unlike CPP, OAS is not tied to employment history. Instead, it depends on how long you’ve lived in Canada after age 18.

Key September 2025 Update for OAS

• OAS is indexed quarterly, based on the Consumer Price Index (CPI).
• Effective September 2025:
  • $734.95/month for seniors aged 65–74.
  • $808.45/month for seniors aged 75 and above.

How CPP & OAS are Adjusted for Inflation

CPP Indexation

• Adjusted once annually (January).
• Based on the average CPI over the past 12 months.
• January 2025 adjustment: +2.6%.

OAS Indexation

• Adjusted four times a year (January, April, July, October).
• Based on quarterly changes in CPI.
• July 2025 adjustment: +1.0%, continuing into September.

Benefits of Deferring CPP and OAS

Canadians may choose to take CPP and OAS at 65 or defer up to age 70 for higher payments.

• CPP Deferral
  • Increase of 0.7% per month (8.4% per year).
  • Example:
    • CPP at 65 = $1,000/month
    • CPP at 70 ≈ $1,420/month
• OAS Deferral
  • Increase of 0.6% per month (7.2% per year).
  • Example:
    • OAS at 65 = $734.95/month
    • OAS at 70 ≈ $1,043/month

How to Verify Your CPP & OAS Payments

Beneficiaries can confirm their payment details through:

1. My Service Canada Account (MSCA) – Online access to payment history, upcoming amounts, and eligibility.
2. Direct Deposit – Bank entries labeled “Government of Canada Deposit.”
3. Service Canada Hotline – Call 1-800-277-9914 for inquiries.
4. Paper Statements – Annual statements showing CPP & OAS entitlement.

Long-Term Viability of CPP & OAS

CPP

• Funded by contributions from workers and employers.
• Managed by the Canada Pension Plan Investment Board (CPPIB).
• Actuarial reports confirm CPP is sustainable for at least 75 years at current contribution levels.

OAS

• Funded directly through federal government revenues.
• Costs are increasing due to Canada’s ageing population.
• Adjustments include:
  • 10% increase for seniors aged 75+ (since 2022).
  • Quarterly CPI indexing to maintain purchasing power.

Payment Dates – CPP & OAS (September 2025)

Both CPP and OAS will be paid at the end of the month.

• CPP Payment Date: Thursday, 25 September 2025.
• OAS Payment Date: Monday, 29 September 2025.

Payments are made by direct deposit or mailed cheque (if not registered for direct deposit).

Fact Check – CPP & OAS Changes 2025

• CPP Increase: 2.6% (new maximum = $1,433.00/month).
• OAS Rates: $734.95 (ages 65–74), $808.45 (ages 75+).
• Automatic Payments: No reapplication needed.
• Eligibility: Based on contributions (CPP) or residency (OAS).
• Viability: Both programs confirmed sustainable by federal authorities.

FAQs on CPP & OAS Changes September 2025

Q1. What is the new CPP maximum monthly payment in 2025?

The maximum monthly CPP payment is $1,433.00.

Q2. How often is CPP adjusted?

CPP is adjusted once per year in January.

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Q3. What is the OAS rate for seniors 75 and older in September 2025?

Seniors aged 75+ will receive $808.45/month.

Q4. When will CPP and OAS payments be made in September 2025?

• CPP: 25 September 2025
• OAS: 29 September 2025

Q5. Do I need to reapply for CPP or OAS after the increase?

No. Increases are automatic and credited directly.

For More Information Click HERE

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