CPP & OAS September 2025 Payment Changes – New Rates, Schedule & Eligibility Explained

For millions of Canadians, the Canada Pension Plan (CPP) and Old Age Security (OAS) are more than government programs—they are the foundation of retirement security. Every year, adjustments are made to ensure these benefits keep pace with rising costs of living. In 2025, seniors will see another set of updates to their monthly payments, reflecting the pressures of inflation, consumer price index (CPI) changes, and broader economic conditions.

The good news for retirees? These increases do not require extra applications or paperwork. They are automatic, and the revised amounts will land directly in seniors’ bank accounts this September. But understanding the new rates, payment schedules, eligibility rules, and deferral options is crucial for planning.

This feature takes a deep dive into the CPP & OAS changes for September 2025—what they mean for seniors today, and how they affect future retirement planning.

Why Are CPP & OAS Changing in September 2025?

The adjustments stem from two factors: inflation protection and cost-of-living increases. Both programs are designed to ensure that seniors’ purchasing power does not erode as prices rise.

• CPP is indexed annually to the CPI. The January 2025 adjustment reflected a 2.6% increase, which carries forward into September payouts.
• OAS is reviewed quarterly. As of July 2025, payments rose by about 1%, and those rates remain in place for September.

Together, these updates provide retirees with extra income that helps offset higher grocery bills, housing costs, and healthcare expenses.

CPP & OAS Overview at a Glance

Program	Adjustment in 2025	Monthly Amount (Max)	Deferral Options	Taxable?
CPP	+2.6% annual indexation	\$1,433 (retirement at 65)	Early from 60 (reduced) or defer to 70 (increased)	Yes
OAS (65–74)	Quarterly indexation	\$734.95	Defer to 70 (+36%)	Yes
OAS (75+)	Quarterly indexation	\$808.45	Defer to 70 (+36%)	Yes
Payment Date	September 29, 2025	Deposited directly	Automatic, no re-application	Yes

CPP Changes for 2025

The Canada Pension Plan continues to evolve as Canada’s most reliable contributory pension program.

• Maximum monthly retirement pension at age 65 in 2025: \$1,433.
• Annual indexation (January 2025): +2.6%, based on CPI.
• Flexibility: Canadians can claim CPP as early as age 60, though payments are reduced. Deferring past 65 increases the benefit.

Deferral Impact on CPP

• Each month deferred after age 65 raises the benefit by 0.7% (8.4% annually).
• Waiting until age 70 means a senior could receive 42% more than at 65.
• For example, a \$1,000 pension at 65 could grow to about \$1,420/month at 70.

CPP is taxable income, but for many seniors, it remains their largest and most stable monthly payment

OAS Updates for September 2025

Old Age Security works differently from CPP: it is a universal benefit funded through general revenues rather than contributions.

• Maximum OAS (ages 65–74): \$734.95/month (July–Sept 2025 rate).
• Maximum OAS (ages 75+): \$808.45/month.
• Indexation: Reviewed quarterly in January, April, July, and October.
• Deferral options: Delaying OAS increases the pension by 0.6% per month (7.2% annually). Over five years, that equals a 36% boost.

For example:

• OAS at 65: \$734.95/month.
• OAS at 70: approximately \$1,073/month.

This flexibility allows seniors with other income sources to maximize future payments.

September 2025 Payment Schedule

The next combined CPP and OAS deposit will be made on September 29, 2025.

Payment methods:

• Direct Deposit: Funds appear as “Government of Canada deposit” in bank accounts.
• Cheques: For those not enrolled in direct deposit, allow several business days for delivery.
• Annual Statement: Seniors may request mailed summaries from Service Canada to confirm amounts.

How to Check Your Payments

Seniors can confirm their payment amounts and schedules through several methods:

1. My Service Canada Account (MSCA): Provides benefit history, upcoming deposits, and eligibility details.
2. Bank transactions: Look for deposits labeled “Government of Canada.”
3. Helpline assistance: Call 1-800-277-9914 with your SIN and personal details.
4. Annual statements: Mailed summaries show yearly benefit amounts.

Eligibility Rules Remain the Same

No new application is required for the September 2025 adjustments. But here’s a quick refresher on eligibility:

• CPP: Based on contributions made during working years. You must have paid into CPP through employment or self-employment.
• OAS: Requires at least 10 years of residency in Canada after age 18. A full pension usually requires 40 years. Partial pensions are available for shorter residency periods.

Both programs remain taxable, meaning payments must be declared on annual returns.

Real-Life Scenarios

Example 1: Barbara, 67, retired teacher

• CPP: $1,200/month
• OAS: $734.95/month
• Total: ~$1,935/month before tax.

Example 2: George, 76, former construction worker

• CPP: $1,000/month
• OAS (75+ rate): $808.45/month
• Total: ~$1,808/month before tax.

Example 3: Louise, 70, deferred OAS

• CPP: $1,300/month
• OAS (deferred to 70): $1,073/month
• Total: ~$2,373/month before tax.

These scenarios show how deferral and age categories significantly affect retirement income.

Why These Adjustments Matter

With inflation affecting essentials like food, rent, and energy, even modest increases help. The 2025 CPP and OAS adjustments:

• Provide predictable inflation-linked income.
• Give seniors more flexibility in retirement planning.
• Reduce the risk of poverty among aging Canadians.

Although the increases won’t fully offset rising costs, they strengthen seniors’ ability to cover daily needs.

Common Questions From Seniors

Many retirees worry about what these changes mean. Key clarifications include:

• No re-application needed. Payments are automatic.
• CPP indexation is annual; OAS indexation is quarterly.
• Deferral boosts are significant. Seniors in good health with other income sources may benefit from waiting.
• Both benefits are taxable. Planning for taxes is important.

The Bigger Picture – Canada’s Retirement Safety Net

CPP and OAS together form the backbone of Canada’s retirement system. Along with the Guaranteed Income Supplement (GIS) for low-income seniors, they provide layered support that:

• Replaces part of pre-retirement earnings (CPP).
• Offers universal baseline income (OAS).
• Provides additional protection for those most at risk (GIS).

By adjusting for inflation and cost of living, these programs continue to anchor financial security for older Canadians.

For retirees, staying informed and considering deferral strategies can make a significant difference in long-term financial health.

5 SEO-Friendly FAQs

Q1. What is the new CPP payment in September 2025?
The maximum CPP retirement pension is $1,433/month at age 65, reflecting a 2.6% annual indexation.

Q2. How much is OAS in September 2025?
Seniors aged 65–74 receive up to $734.95/month, while those aged 75+ get $808.45/month.

Q3. When will the September 2025 CPP and OAS payments be made?
Payments will be deposited on September 29, 2025.

Q4. Do I need to reapply for the updated CPP and OAS amounts?
No. Increases are automatic and applied directly to your monthly payments.

Q5. Can I increase my CPP or OAS by deferring?
Yes. Deferring CPP adds 0.7% per month after 65, while deferring OAS adds 0.6% per month, up to age 70.