For Canadian seniors, retirement planning isn’t just about saving—it’s about knowing when and how to claim benefits. In 2025, retirees have a real opportunity to boost their income by up to $4,000 simply by using smart strategies with their CPP and OAS benefits. If you’re nearing retirement or already receiving payments, this guide will show you how to make the most of what’s available.
From payment dates to eligibility and practical deferral strategies, we’ll walk you through every step needed to increase your pension income and secure a stronger financial future.
Overview
Here’s a quick look at the 2025 CPP and OAS bonus opportunity:
| Feature | Details |
|---|---|
| Bonus Potential | Up to $4,000 extra annually with delayed benefits |
| Who Qualifies | Canadians aged 65+ eligible for CPP and OAS |
| Strategy | Delay CPP to age 70 (42% boost), OAS to age 70 (36% boost) |
| Max CPP Monthly (Age 70) | $1,364.60 |
| Max OAS Monthly (Age 70) | $989.63 |
| Payment Dates | 12 monthly payments from Jan 29 to Dec 22 |
| Source | Official info via Canada.ca – Pension Benefits |
Let’s break this down step by step.
CPP and OAS
CPP is a retirement pension based on your employment and contribution history. The more you earn and contribute during your working life, the more you receive in retirement.
- Available as early as age 60
- Max monthly payout in 2025 at age 70: $1,364.60
- Increases 0.7% each month you delay past 65 (8.4% per year)
OAS
OAS is a universal benefit for Canadian residents aged 65 and over. Unlike CPP, it isn’t based on how much you earned or worked.
- Starts at age 65, but can be delayed
- Max monthly payout in 2025 at age 70: $989.63
- Increases 0.6% per month after 65 (7.2% per year)
- May be reduced if your income is too high (OAS clawback)
Claiming the $4,000 Bonus
You won’t find a $4,000 cheque in your mailbox, but with the right strategy, you can earn this much—or more—by simply deferring your benefits.
1. Delay CPP to Age 70
Let’s say you qualify for $960/month at age 65.
- Wait until 70, and that grows by 42% to $1,363.20/month
- That’s an increase of $403.20/month or $4,838.40/year
- Over 20 years: nearly $96,000 more in total
This strategy pays off if you’re in good health and expect to live well into your 80s or beyond.
2. Delay OAS to Age 70
The same deferral logic applies to OAS.
- OAS at 65: $727.67/month
- Delay to 70: increases 36% to $989.63/month
- That’s an extra $261.96/month or $3,143.52/year
- Over 20 years: more than $62,800 in added income
Even delaying by one or two years can still result in a noticeable increase.
3. Check GIS Eligibility
Low-income seniors may qualify for the Guaranteed Income Supplement (GIS), which adds to your OAS.
- Max GIS for 2025: $1,065.47/month (single)
- Income must be below $21,456 (single) or $28,320 (couple)
- You must already be receiving OAS to qualify
If eligible, GIS can significantly raise your monthly income without being taxable.
Payment Dates
CPP and OAS are paid monthly on the following dates:
| Month | Payment Date |
|---|---|
| January | Jan 29 |
| February | Feb 26 |
| March | Mar 27 |
| April | Apr 28 |
| May | May 28 |
| June | Jun 26 |
| July | Jul 29 |
| August | Aug 27 |
| September | Sep 25 |
| October | Oct 29 |
| November | Nov 26 |
| December | Dec 22 |
Make sure your banking details are up to date for direct deposit.
Is Deferral Right for You?
Delaying benefits isn’t the right choice for everyone. Consider deferring if:
- You’re in good health and expect to live past 85
- You have other income sources to rely on in the short term
- You want to protect yourself from inflation in later life
Don’t delay if:
- You need the income now
- You have health concerns
- You’re at risk of OAS clawbacks with a higher income later
Maximize Your Pension
- Use My Service Canada Account to review your pension estimates
- Speak with a financial advisor to tailor your decision
- Combine CPP, OAS, GIS, TFSAs, and RRSPs for a full retirement strategy
- Revisit your plan annually, especially if your income or health changes
In 2025, the key to claiming up to $4,000 more in CPP and OAS benefits is timing. By knowing your options and delaying payments where possible, you can secure a larger and more reliable income stream for the years ahead. Think long-term, plan wisely, and take full advantage of what Canada’s retirement system offers.
FAQs
How much can CPP increase by delaying?
Delaying CPP to age 70 increases payments by up to 42%.
When is the best age to start OAS?
It depends on your finances, but delaying boosts your monthly amount.
Do I have to apply for CPP or OAS?
Yes, applications are required; benefits don’t start automatically.
Is GIS taxable income?
No, GIS is a non-taxable benefit for low-income seniors.
What are the 2025 payment dates?
Payments are issued monthly, with exact dates from Jan to Dec.
