Canada Pension Plan and Old Age Security

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    Canada Pension Plan

    In addition to your PJPP pension, you will also be eligible for benefits from the Canada Pension Plan (CPP).

    The CPP is intended to replace a percentage of your pensionable earnings, up to a maximum amount. As of January 2019, the replacement rate increased from 25% rate to 33%. The amount you receive depends on how much you contribute during your working years.

    If you are not already receiving CPP benefits, keep the following in mind:

    • If you are working outside Canada, earn less than the CPP earnings limit, or do not receive eligible income you may get less than the maximum pension. To see the current maximum figures, please visit the Government of Canada’s CPP page(opens in a new tab).
    • You may apply for your CPP pension anytime between the ages of 60 and 70.
    • If you start your CPP pension before age 65, it will be reduced for each year you are under age 65 – and it will not be re-adjusted to a full pension once you turn age 65.
    • If you start your CPP pension after age 65, it will be increased to account for later retirement. The benefit is indexed every year if the Consumer Price Index goes up.
    • You should complete an application form at least six months before you want your CPP pension to begin.

    Information on your personal contributions and earnings history is available from your local office of Service Canada, or online at Statement of contributions to the Canada Pension Plan - Canada.ca(opens in a new tab)

    Canada Pension Plan income splitting

    You and your spouse can “share” or split the portion of your CPP benefits earned during your time together, provided you are both at least 60 and are both receiving (or have applied for) CPP benefits. Pension sharing may result in tax savings.

    To share CPP benefits, you must apply. The application is available online at the Service Canada(opens in a new tab) website. If you have any questions about the sharing of CPP benefits, contact Service Canada directly at: 1-800-277-9914 (for service in French, call 1-800-277-9915).

    Old Age Security

    Old Age Security (OAS) benefits are paid monthly starting at age 65. The amount you receive, if any, depends on the length of time you have lived in Canada when you apply, and your income level. To see the current maximum figures, please visit the Government of Canada’s OAS page(opens in a new tab).

    Once your OAS pension begins, payments are increased every three months if the Consumer Price Index goes up.

    Keep in mind that your government benefits do not start automatically when you retire. You must file an application with Service Canada(opens in a new tab) at least six months before you want OAS to begin.

    Old Age Security Clawback

    Given that your eligibility for OAS benefits partly depends on your retirement income from all sources, you may be required to repay OAS benefits if your total retirement income exceeds the allowable eligibility limit. To see the current income thresholds, please visit the Government of Canada’s OAS page(opens in a new tab).

    If you’re receiving OAS and your net income on line 236 of your tax return is more than the specified threshold amount, you will be subject to OAS clawback.

    For OAS-specific inquiries, visit the OAS program(opens in a new tab).