Canada’s $400 CPP/OAS Increase in 2025: Who Gets Paid and What You Need to Know

Starting on February 26, 2025, Canadian seniors who are receiving Canada Pension Plan (CPP) and Old Age Security (OAS) benefits will see a significant increase of $400 in their monthly payments. This change aims to help seniors cope with the rising cost of living and inflation, providing them with additional financial support. Let’s dive into the details of who will benefit from this increase, when payments will be made, and how you can manage these funds wisely.

What Is CPP and OAS?

Before discussing the increase, it’s important to understand what CPP and OAS are and who qualifies for these benefits:

• Canada Pension Plan (CPP): This is a contributory pension plan that provides monthly payments to eligible workers and their families when they retire or in the case of disability or death. The amount you receive is based on how much you have contributed during your working years.

• Old Age Security (OAS): This is a non-contributory benefit provided to seniors aged 65 and older. It is available to most Canadians who meet certain residency requirements, regardless of their previous work history.

Who Will Get the $400 Increase?

The $400 increase will be applied to eligible seniors who are currently receiving both CPP and OAS payments. The following groups will benefit from this change:

1. Seniors Receiving CPP:

   • Seniors who are retired, disabled, or have lost a spouse and receive CPP payments will see their monthly benefits increase by $400 starting on February 26, 2025.
   • The amount added to each payment will vary depending on how much the individual currently receives, but the total increase will be $400.

2. Seniors Receiving OAS:

   • OAS recipients will also see an additional $400 per month, which will be added directly to their existing benefits.
   • This increase is aimed at assisting seniors who may be struggling with inflation and increasing living costs.

3. Low-Income Seniors:

   • Seniors who also qualify for the Guaranteed Income Supplement (GIS) will benefit from the increase as well. This program is designed to provide financial assistance to low-income seniors.

How to Check Your Eligibility

To receive the $400 increase, you need to meet the basic eligibility requirements for CPP and/or OAS. Here are the criteria:

• For CPP: You must have worked in Canada and made contributions to the CPP throughout your career. The amount of your CPP depends on how much you contributed over the years.

• For OAS: To qualify, you must be a Canadian citizen or legal resident who has lived in Canada for a certain number of years after the age of 18. The OAS program is not based on work history but on residency.

If you’re unsure about your eligibility, you can check your Canada Pension Plan statement and Old Age Security status through your CRA My Account.

When Will the $400 Increase Be Paid?

The $400 increase in CPP and OAS benefits will start being paid out on February 26, 2025. If you’re already receiving monthly CPP and OAS payments, you should see the increase reflected in your payment from that date onwards.

Payment Schedule for 2025:

Benefit	Payment Date
CPP & OAS Increase	February 26, 2025
Monthly Payments	Last business day of the month
For GIS recipients	Same as OAS/CPP payment date

Financial Planning for CPP/OAS Increase

While the $400 increase will help provide much-needed relief to seniors, it’s important to plan how to use this additional income effectively. Here are some strategies to manage your increased benefits:

1. Cover Rising Costs

• Use the increase to offset the rising cost of living, especially in areas such as groceries, utilities, and healthcare.

2. Emergency Savings

• Consider putting part of the increase into an emergency savings fund in case of unexpected expenses in the future.

3. Invest in Health

• The additional funds could be used to improve your health and well-being, whether it’s through healthcare expenses or maintaining an active lifestyle.

4. Debt Repayment

• If you have any outstanding debt, this extra income can help you reduce credit card balances or loan payments.

5. Support Family

• Consider using the increase to help family members or contribute to grandchildren’s education funds.

Online Payment Methods for Seniors

The Canada Revenue Agency (CRA) provides several payment methods for seniors receiving CPP and OAS benefits. Here are the most common ways to receive your benefits:

1. Direct Deposit:

   • The most secure and efficient method for receiving your increased CPP and OAS payments is through direct deposit. This option deposits the funds directly into your bank account, usually within a few days after the payment date.

2. Cheque Payments:

   • If you do not have direct deposit set up, the CRA will mail you a cheque for your payments, which could take longer to arrive.

3. Mobile App:

   • You can check the status of your payments through the CRA My Account app, which allows you to track the processing of your CPP and OAS payments.

4. CRA My Account:

   • You can also access details about your benefits and make changes to your payment preferences via your CRA My Account online portal.

Conclusion

The $400 increase in CPP and OAS benefits, effective from February 26, 2025, marks a significant boost in support for Canadian seniors. This increase is designed to help seniors manage rising living costs and provide additional financial security. Whether you receive CPP, OAS, or both, the extra income can make a noticeable difference in your monthly budget. Be sure to check your eligibility and set up direct deposit for the fastest payment option. Make the most of this increase by planning your finances accordingly and utilizing the funds wisely.

Frequently Asked Questions

1. Who is eligible for the $400 increase in CPP and OAS benefits?

Seniors who receive CPP and OAS benefits, including those who qualify for Guaranteed Income Supplement (GIS), will receive the $400 increase.

2. When will the increase be reflected in my payment?

The increase will be reflected in payments starting from February 26, 2025.

3. Can I change my payment method for CPP and OAS benefits?

Yes, you can switch to direct deposit through the CRA My Account or by contacting the CRA.

4. How do I know if I qualify for CPP and OAS?

Check your eligibility through the CRA My Account or contact the CRA for more details.

5. Is the $400 increase a one-time payment?

No, the increase is a permanent adjustment to monthly CPP and OAS payments, beginning in February 2025.