In July 2025, the Canada Revenue Agency (CRA) made a significant announcement that will affect thousands of seniors across Canada. They’ve unveiled a major increase in pension payments for those who qualify. This news is a welcome relief to many individuals who rely on their pensions for financial stability in retirement. If you’re eligible, you could be seeing a noticeable bump in your monthly pension amount — helping to cope with inflation and the rising cost of living.
Whether you’re a senior citizen already receiving benefits or someone planning for the future, this article will explain everything you need to know about the CRA pension increase. We’ll walk through eligibility criteria, the exact amounts, the payment schedule, and how you can ensure that you’re getting the right amount. Let’s break it all down, step by step, so you know exactly what to expect.
CRA Announces Pension Payment Hike
| Key Information | Details |
|---|---|
| Pension Payment Increase | $60 to $75 increase in monthly payments for qualified individuals |
| Eligible Age for CPP | At least 60 years old |
| Eligible Age for OAS | At least 65 years old |
| Maximum Monthly Benefit (CPP) | Increased from $1,307 to $1,382 |
| Survivor Benefit Increase | Increased from $705 to $740 |
| Payment Dates (2025) | July 29, August 27, September 25, October 29, November 26, December 22 |
| Official Source | Canada.ca |
The Canada Revenue Agency’s pension payment increase is a welcome development for many Canadians who rely on the Canada Pension Plan (CPP) and Old Age Security (OAS) for financial security in retirement. The increase will help offset inflation and ensure that seniors can continue to maintain a reasonable standard of living. If you qualify for the increase, be sure to check your eligibility and update your information to avoid any delays.
Understanding the Pension Payment Hike
What is the CRA Pension Payment Hike?
The CRA pension payment hike is an adjustment to the Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. These increases are meant to better align pension payments with the growing costs of living, especially in times of inflation. Many seniors rely heavily on these pension benefits, and even a small increase can make a big difference.
For 2025, eligible Canadians will receive a bump in their monthly CPP and OAS payments. The increase in payments is designed to help seniors keep pace with inflation, ensuring they can maintain a decent standard of living even as everyday expenses continue to rise.
Who Qualifies for the Increased Payments?
Before we dive into the specifics of how much more you can expect to receive, let’s quickly review the eligibility requirements. Here’s who can benefit from these increases:
- Canada Pension Plan (CPP):
- You must be at least 60 years old.
- You should have made at least one valid contribution to the CPP during your working years.
- Canadians who qualify for the CPP will automatically receive the increased amounts starting in July 2025.
- Old Age Security (OAS):
- You must be 65 years old or older.
- You must have lived in Canada for at least 10 years after turning 18.
- Your income in 2024 must be below the threshold set for the OAS clawback, which is $148,541 for those aged 65 to 74, and $154,196 for individuals aged 75 or older.
If you meet the age and contribution requirements for either program, you’ll automatically see the increase in your pension payments without needing to apply for it separately.
How Much Will the Payment Increase Be?
Let’s get into the nitty-gritty of the numbers. Here are the details on how much more you can expect in your monthly payments:
Canada Pension Plan (CPP) Increase:
- Retirement Benefit: The average amount for seniors will increase from $772 to $832 per month.
- Maximum Monthly Benefit: Those who qualify for the maximum benefit can see an increase from $1,307 to $1,382 per month.
- Disability Benefit: Those receiving disability payments can expect an increase from $1,137 to $1,195 per month.
- Survivor Benefit: The amount paid to surviving spouses or common-law partners will rise from $705 to $740 per month.
Old Age Security (OAS) Increase:
- Ages 65–74: Up to $734.95 per month (increased from the previous amount).
- Ages 75+: Up to $808.45 per month (an increase from the standard rate).
The increases vary depending on your specific benefits and circumstances, but generally, Canadians can expect a solid bump in their monthly income.
Payment Schedule for 2025
Knowing when the payments will come through is just as important as knowing how much you’ll receive. Here’s when you can expect to see those increased payments in your bank account in 2025:
- July 29
- August 27
- September 25
- October 29
- November 26
- December 22
Make sure to mark these dates on your calendar if you rely on your monthly pension payments to plan your finances.
How to Make Sure You Get the Increased Payment
Now that you know what the increases will be and when they will take place, let’s talk about how to ensure you’re getting the right amount. Here’s a quick guide on what you need to do:
Step 1: Verify Your Eligibility
Before the increase takes effect, make sure you meet all the eligibility requirements. If you’re unsure whether you’re qualified for the increased payments, you can always check with the official CRA website or log into your My Service Canada Account for updates. This will allow you to confirm whether you meet the age, income, and contribution criteria.
Step 2: Update Your Information
If your banking details or personal information have changed, make sure to update them with Service Canada. You can do this through your My Service Canada Account or by contacting Service Canada directly. This ensures that your increased payments are deposited into the correct account without delay.
Step 3: No Action Needed for Current Recipients
If you’re already receiving CPP or OAS, there’s no need to apply for the increase. The CRA will automatically adjust your monthly payment amount starting in July 2025. However, if you’re receiving payments under the OAS program and your income exceeds the clawback threshold, be aware that your payments could be reduced.
FAQs
1. When will the increased payments be available?
The new pension payments will start on July 29, 2025 and continue throughout the year on the designated payment dates.
2. What if I don’t qualify for the increase?
If you don’t meet the age or income requirements, you won’t receive the increased payments. However, you’ll continue to receive your regular CPP or OAS benefits.
3. How can I check my eligibility?
You can check your eligibility by logging into your My Service Canada Account or by visiting the official CRA website. You’ll need to verify your age, income, and contributions to the CPP or OAS program.
4. Can I apply for the increase?
No, you don’t need to apply for the increase. The CRA will automatically apply the new rates to your monthly payments if you meet the eligibility requirements.
