How CPP and OAS work
The Canada Pension Plan (CPP) is a contributory earnings-based pension. Your monthly amount depends on how much you contributed (up to the YMPE of $71,300 in 2025) and for how many years. Max at 65 in 2025: $1,433/month, or roughly $17,196/year. The "CPP2" enhancement on earnings between YMPE and YAMPE ($81,200) increases future benefits slightly.
Old Age Security (OAS) is a residency-based benefit — it has nothing to do with what you earned. Full benefit requires 40 years of Canadian residency after age 18; less gives you a proportional amount (you need at least 10 years to qualify). Max at 65 in 2025: $727.67/month ($800.44 at 75+). OAS is "clawed back" starting at income of $93,454.
When to take them: You can start CPP as early as 60 (0.6%/month reduction = 36% less at 60) or delay to 70 (0.7%/month increase = 42% more at 70). OAS can be delayed from 65 to 70 for 36% more. The "break-even" age for taking early is around 73–74 for CPP, 82–83 for OAS. If you expect to live longer than that, delaying usually wins.
Note: This estimator is simplified. Exact CPP depends on your full contribution history and the "drop-out" provisions. Get your official estimate from Service Canada (MSCA).
What's the maximum CPP at 65 in 2025?
$1,433/month in 2025 — about $17,196/year. Actual max keeps rising as the CPP enhancement phases in (started 2019, fully effective ~2065). Most Canadians receive less than max because they don't hit YMPE every year.
Is it better to take CPP at 60 or 70?
Take early if: you need the cash, you're not well, or you want to stop working. Delay if: you're healthy, can afford to wait, and want a larger inflation-indexed lifetime pension. Break-even is ~age 74 — live past that and delaying wins.
What's the OAS clawback?
If your net income exceeds $93,454 (2025), OAS is clawed back at 15 cents per dollar over the threshold. Fully clawed back at ~$151,668 (65–74) or ~$158,324 (75+). Can be reduced by income-splitting or RRSP contributions.
Can I get both CPP and OAS while still working?
Yes. CPP can be collected while working past 60 (you can also keep contributing to increase it via PRB). OAS can be collected at 65 regardless of work status, subject to clawback if your income is high.