Canada’s retirement and pension system is set to undergo significant changes starting in April 2025. With the new year, updates to major programs such as the Canada Pension Plan (CPP), Old Age Security (OAS), Guaranteed Income Supplement (GIS), Registered Retirement Savings Plan (RRSP), and various pension schemes are expected. These changes aim to improve financial stability for retirees, tackle inflationary pressures, and introduce new policies that will affect beneficiaries across the country.
Big Changes in CPP, OAS, GIS, RRSP
| Particulars | Details |
| Pension Names |
|
| Providing Authority | Canada Revenue Agency (CRA) |
| Eligibility |
|
| Beneficieries | Canadian senior citizens |
| Upcoming changes | Increase in benefits starting November 2024 and April 2025. |
| Reason for Changes | Inflation adjustment using the Consumer Price Index (CPI). |
| Maximum (Monthly) |
|
| Mode of Payment | Direct Deposits |
| Duration | Monthly |
| Official Website | www.canada.ca |
Big Changes in CPP, OAS, GIS, and RRSP
Canada Pension Plan (CPP)
There will be an increase in maximum and average payments. Starting April 2025, the monthly payment amounts for the Canada Pension Plan (CPP) will be adjusted:
Maximum monthly CPP payment: Will increase to $1,406.10 up from $1,364.60 in 2024.
Average monthly CPP payment: Will rise to approximately $787.50, reflecting an increase from the previous year.
The federal government is expected to soon provide an additional payout of $2,500 to low-income Canadians receiving assistance through its program. This extra money will be available to anyone who files their income tax returns and pays their taxes.
Old Age Security (OAS)
The Canada Revenue Agency (CRA) has announced an increase in OAS benefits starting in November 2024. This change ensures that payments keep pace with inflation and the growing cost of living.
The benefits you’ll get in Old Age Security (OAS) determine how many years you have stayed as a resident in Canada after turning 18. Due to a 1.3% increase in benefits this year, the maximum monthly OAS payment is not $727.67 for individuals aged 65 to 74 years and $800.44 for those aged 75 and older.
Guranteed Income Supplement (GIS)
GIS is an additional benefit for senior citizens with low income. With the help of GIS, many senior citizens can be made financially independent as they will get the pension from both OAS and GIS and any other pension, if any. For example, a senior citizen with low income and limited resources applies for GIS. Then he/she can add a significant value to their income by the monthly payment received by them. It will help them live a better life with fulfilment of basic needs.
Registered Retirement Savings Plan (RRSP)
The Canada Revenue Agency has released an update to Information Circular IC72-22R10, which pertains to Registered Retirement Savings Plans (RRSPs). This latest update offers essential guidance for issuers looking to provide RRSPs to the public. Notably, a significant change includes the requirement for RRSP contribution receipt information to be submitted in XML format. Furthermore, the CRA has removed the necessity for an authorised individual’s signature on the contribution receipts provided to annuitants.
Positive Effects of Changes
Higher Monthly Income
The increased income will help seniors manage essential expenses more easily, including housing, groceries, and healthcare, by offsetting inflation.
Increased Security for Senior Citizens
Keeping in mind the challenges faced by older citizens, security has been increased in pensions. Those aged 75+ will receive a marginally greater advantage.
How to claim CPP, OAS, GIS, and RRSP Payment 2025?
To claim your monthly pension in 2025, read the guidelines given below:
- If you want to claim your pension early, you need to register, as you are not automatically registered.
- You must have all the required documents, especially your Social Insurance Number (SIN).
- After the submission of your application, it will be reviewed by the department. Once this process is done, they will tell you the starting date of your benefit.
- For more details, you can visit the official website, www.canada.ca.
- To enquire about your payment status, you can contact Service Canada at 1-800-277-9914.