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Those who qualify will receive CPP payments for the rest of their lives.

Old Age Security (OAS) is a monthly payment you become eligible for once you turn 65. Most people are automatically enrolled for the OAS pension by Service Canada.

Here’s what you need to know.

Who will receive the payments?

Every worker in Canada, except in Quebec, where there’s a provincial pension plan in place, is automatically enrolled in the CPP.Ìý

Both employers and employees pay into plan, with employees paying into it through payroll deductions and employers matching them. Contributions don’t need to be made on earnings less than $3,500 a year.

For 2025, the CPP contribution rate is 5.95 per cent on earnings up to $71,300. People earning more than that can expect to pay an additional four per cent on what they make, up to $81,200, toward their pension.Ìý

Those who are self-employed need to make both the employer and employee contributions to the plan.

For OAS, even people who have never worked can receive the pension. You must be 65 or older, and if currently living in Canada, be a citizen or legal resident at the time your OAS pension application is approved, and have lived in Canada for at least 10 years since you turned 18.

Those living outside of Canada are also eligible, but must have been a Canadian citizen or legal resident on the day before they left the country, and have lived in Canada for at least 20 years since they were 18.Ìý

How much could you receive?Ìý

The size of a person’s CPP monthly payment depends on multiple factors including whenÌýthey choose to retire, how much and how long they contributed to the plan for and how much they made on average throughout their working life.

The earlier someone starts their pension, the smaller their monthly payments will be, and vice versa. However, the Government of Canada website says there’s no benefit to waiting past age 70 to start getting pension payments because that’s when the maximum monthly payment amount is reached.

As of January, the maximum monthly amount someone could receive if they start their pension at the standard retirement age of 65 is $1,433, according to the federal government.

In comparison, the average amount paid out for a new retirement pension at the age of 65 was around $800 a month in October 2024.

For the OAS pension, payments from July to September maxed out monthly at $734.95 for those between 65 and 74 years old. For those 75 or older, the maximum monthly payment is $808.45.

That amount will increase by 0.7 per cent for the October to December 2025 quarter, based on changes to the Consumer Price Index.

What else could impact my payments?

People who have gone through periods where they made little or no income because they took time off due to disability or to raise children, for example, don’t have to worry about that setting them back when it comes to CPP payments.

“We will ‘drop out’ or not include up to 8 years of your lowest earnings from your earnings history,” the government’s website says.Ìý

Anyone under the age of 70 who continues to work while receiving their CPP payments can still contribute to the CPP. Each year the person contributes to CPP will result in a postretirement benefit, which the individual will automatically receive the following year,Ìýraising the person’s retirement income.

Contributions stop at 70 years old whether the recipient continues to work or not.

CPP contributions can also be split equally between married or common-law couples if they separate or divorce.

When are the rest of the payments coming out?

Subsequent CPP and OAS payments will come out on the following dates this year:

• Oct. 29
• Nov. 26
• Dec. 22

Next year’s dates are not yet available.

With files from