How Much CPP and OAS Will You Get in 2024? A Complete Guide to Maximize Your Retirement Income

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Key Takeaway Box:

CPP and OAS are two of the most important pillars of Canada’s public retirement income system.
CPP is a contributory, earnings-related social insurance program that provides a monthly benefit to eligible retirees, survivors, and disabled persons.
OAS is a non-contributory, flat-rate pension program that provides a basic income to almost all Canadian citizens or legal residents aged 65 and older.
The amount of CPP and OAS you will receive depends on various factors, such as your age, income, contributions, marital status, and residency history.
The maximum monthly CPP payment for 2024 is $1,364.60, and the maximum monthly OAS payment for the first quarter of 2024 is $713.34 (age 65-74) and $784.67 (age 75 and over).
You can estimate your CPP and OAS benefits using online calculators or by accessing your personal information on My Service Canada Account.
You can apply for CPP and OAS online, by mail, or in person at a Service Canada office.
You can delay or advance your CPP and OAS payments to increase or decrease your monthly benefits.

If you are approaching retirement age, you may be wondering how much income you will receive from the Canada Pension Plan (CPP) and the Old Age Security (OAS) program. These are two of the most important pillars of Canada’s public retirement income system, and they provide monthly payments to millions of seniors across the country.

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But how do CPP and OAS work, and how much will you get as CPP and OAS combined? In this article, we will explain the full benefits of CPP and OAS, and how to calculate, apply, and optimize your payments. Let’s get started, Hustlers! 🚀

Table of Contents

What is CPP?

CPP is a contributory, earnings-related social insurance program that provides a monthly benefit to eligible retirees, survivors, and disabled persons. CPP is funded by contributions from workers, employers, and self-employed individuals, as well as investment returns from the CPP Investment Board.

The amount of CPP you will receive depends on how much and for how long you have contributed to the plan, and the age at which you start receiving your payments. You can start receiving CPP as early as age 60 or as late as age 70. The standard age to start CPP is 65, and if you start before or after that, your payments will be adjusted accordingly.

The maximum monthly CPP payment for 2024 is $1,364.60, but the average monthly payment as of October 2023 was $736.75. To receive the maximum CPP payment, you need to have contributed the maximum amount to CPP for at least 39 years between the ages of 18 and 65.

What is OAS?

OAS is a non-contributory, flat-rate pension program that provides a basic income to almost all Canadian citizens or legal residents aged 65 and older. OAS is funded by general tax revenues, and you do not need to have worked or contributed to receive it.

The amount of OAS you will receive depends on your age and your residency history in Canada. You need to have lived in Canada for at least 10 years since turning 18 to qualify for OAS, and you need to have lived in Canada for at least 40 years since turning 18 to receive the full OAS payment.

The maximum monthly OAS payment for the first quarter of 2024 is $713.34 (age 65-74) and $784.67 (age 75 and over). OAS payments are revised quarterly in January, April, July, and October to adjust for increases in the cost of living.

However, if your income exceeds a certain threshold, you may have to repay some or all of your OAS payments through a mechanism called the OAS recovery tax or clawback. For 2024, the clawback applies if your net income (excluding OAS) is more than $81,593, and you have to repay 15% of the excess amount.

How to Calculate Your CPP and OAS Benefits

The best way to estimate your CPP and OAS benefits is to use online calculators or to access your personal information on My Service Canada Account (MSCA). MSCA is a secure online portal that allows you to view and update your CPP and OAS information, apply for benefits, submit documents, and more.

To use MSCA, you need to register or sign in with your GCKey or your bank credentials. Once you are logged in, you can select the “Canada Pension Plan/Old Age Security” button on the MSCA welcome page. From there, you can view your CPP Statement of Contributions, which shows your earnings and contributions to CPP for each year, as well as your estimated CPP benefits at different ages.

You can also view your OAS pension information, such as your eligibility status, payment amount, and payment date. You can also use the OAS Pension Calculator to estimate your OAS benefits based on your age and residency history.

Alternatively, you can use online calculators provided by third-party websites, such as the Retirement Income Calculator by the Government of Canada, the CPP and OAS Benefits Calculator by Savvy New Canadians, or the CPP and OAS Calculator by CanPension. These calculators can help you estimate your CPP and OAS benefits based on your income, contributions, age, and other factors. However, these calculators are only for illustrative purposes and may not reflect your actual benefits.

How to Apply for CPP and OAS Benefits

You can apply for CPP and OAS benefits online, by mail, or in person at a Service Canada office. However, in some cases, you may not need to apply for OAS, as Service Canada may automatically enroll you if you are eligible. Service Canada will inform you if you have been automatically enrolled, and you will receive your first OAS payment the month after you turn 65.

To apply for CPP and OAS online, you need to have a MSCA account and a valid email address. You can access the online application forms by selecting the “Apply for CPP/OAS” button on the MSCA welcome page. You will need to provide some personal information, such as your Social Insurance Number, date of birth, banking information, and residency history. You may also need to submit supporting documents, such as proof of identity, citizenship, or legal status.

To apply for CPP and OAS by mail, you need to download and print the application forms from the Service Canada website, or request them by phone at 1-800-277-9914. You will need to fill out the forms and mail them to the address indicated on the forms, along with the required supporting documents.

To apply for CPP and OAS in person, you need to visit a Service Canada office near you and bring the completed application forms and supporting documents. You can find a Service Canada office by using the Service Canada Office Finder tool.

You should apply for CPP and OAS at least six months before you want to start receiving your payments, as it may take some time for Service Canada to process your application and verify your information. You can check the status of your application online through MSCA, or by calling 1-800-277-9914.

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How to Optimize Your CPP and OAS Benefits

One of the ways to optimize your CPP and OAS benefits is to delay or advance your payments to increase or decrease your monthly benefits. For CPP, you can start receiving your payments as early as age 60 or as late as age 70. For every month that you start before age 65, your payments will be reduced by 0.6%, and for every month that you start after age 65, your payments will be increased by 0.7%.

For OAS, you can start receiving your payments as early as age 65 or as late as age 70. For every month that you start before age 70, your payments will be reduced by 0.6%, and for every month that you start after age 65, your payments will be increased by 0.6%.

The decision to delay or advance your CPP and OAS payments depends on various factors, such as your life expectancy, health, income, tax situation, and personal preferences. Generally, delaying your payments will result in higher monthly benefits, but lower lifetime benefits, and vice versa. You should consult a financial planner or a retirement expert to help you make the best decision for your situation.

Another way to optimize your CPP and OAS benefits is to take advantage of the additional benefits and services that are available to low-income seniors, spouses, former spouses, and children. These include:

Guaranteed Income Supplement (GIS): A monthly benefit that is added to your OAS payment if your income is below a certain threshold. The amount of GIS you will receive depends on your marital status, income, and residency. The maximum monthly GIS payment for the first quarter of 2024 is $936.76 (single) and $626.63 (spouse/common-law partner).
GIS – Allowance: A monthly benefit that is paid to the spouse or common-law partner of a GIS recipient, or a widow or widower aged 60 to 64, whose income falls below a certain threshold. The amount of GIS – Allowance you will receive depends on your marital status, income, and residency. The maximum monthly GIS – Allowance payment for the first quarter of 2024 is $1,340.97 (spouse/common-law partner of a GIS recipient) and $1,507.04 (widow or widower).
CPP Survivor’s Pension: A monthly benefit that is paid to the surviving spouse or common-law partner of a deceased CPP contributor, or to a dependent child of a deceased CPP contributor. The amount of CPP Survivor’s Pension you will receive depends on the age, income, and contributions of the deceased contributor, and your own age and income. The maximum monthly CPP Survivor’s Pension payment for 2024 is $728.46 (spouse/common-law partner under 65), $692.75 (spouse/common-law partner 65 and over), and $273.58 (child).
CPP Children’s Benefit: A monthly benefit that is paid to the dependent child of a disabled or deceased CPP contributor. The amount of CPP Children’s Benefit you will receive is a flat rate of $273.58 per child for 2024.
CPP Disability Benefit: A monthly benefit that is paid to a CPP contributor who is under 65 and has a severe and prolonged disability that prevents them from working. The amount of CPP Disability Benefit you will receive depends on your contributions to CPP and your disability status. The maximum monthly CPP Disability Benefit payment for 2024 is $1,457.60, which includes a fixed amount of $528.28 and a variable amount based on your contributions.
CPP Post-Retirement Benefit: A monthly benefit that is paid to a CPP contributor who is 60 or older and continues to work and contribute to CPP. The amount of CPP Post-Retirement Benefit you will receive depends on your contributions and earnings after you start receiving CPP. The CPP Post-Retirement Benefit is added to your regular CPP payment and increases your retirement income.
OAS – Guaranteed Income Supplement (GIS) – Allowance for the Survivor: A monthly benefit that is paid to a widow or widower aged 60 to 64, whose income falls below a certain threshold. The amount of GIS – Allowance for the Survivor you will receive depends on your income and residency. The maximum monthly GIS – Allowance for the Survivor payment for the first quarter of 2024 is $1,507.04.

To apply for these additional benefits and services, you need to fill out and submit the appropriate application forms, which are available on the Service Canada website or at a Service Canada office. You may also need to provide supporting documents, such as proof of identity, income, disability, or death.

Conclusion

CPP and OAS are two of the most important sources of income for Canadian seniors, and they provide monthly payments to eligible retirees, survivors, and disabled persons. The amount of CPP and OAS you will receive depends on various factors, such as your age, income, contributions, marital status, and residency history. You can estimate your CPP and OAS benefits using online calculators or by accessing your personal information on My Service Canada Account. You can apply for CPP and OAS online, by mail, or in person at a Service Canada office. You can also optimize your CPP and OAS benefits by delaying or advancing your payments, or by taking advantage of the additional benefits and services that are available to low-income seniors, spouses, former spouses, and children.

We hope this article has helped you understand how much you will get as CPP and OAS combined, and how to make the most of your retirement income. If you have any questions or feedback, please leave a comment below or contact us at HustleHub. We are always happy to hear from you and help you achieve your financial goals. 💯

Source: (1) Old Age Security – Canada.ca. https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security.html. (2) Pension benefits and services in My Service Canada Account. https://www.canada.ca/en/employment-social-development/services/my-account/cpp-oas.html.