If you’ve seen news of a $2,900 Canada Pension Plan (CPP) boost, you’re not alone—but the truth is more nuanced.
While the CPP itself hasn’t suddenly increased by $2,900, the combined value of federal retirement benefits—including CPP, Old Age Security (OAS), and the Guaranteed Income Supplement (GIS)—can total up to $2,900 per month for certain retirees in 2025.
Here’s a breakdown of how these federal benefits add up, who qualifies, the July 2025 CPP payment date, and how to maximize your retirement income.
CPP Payment Date – July 2025
If you’re receiving CPP payments, your July 2025 deposit date is:
Monday, July 28, 2025
Make sure your banking information is up to date in your My Service Canada Account to avoid any delays.
Breaking Down the $2,900 Monthly Total
The “$2,900” figure refers to a combined benefit total that includes:
| Benefit | Monthly Maximum (2025) |
|---|---|
| Canada Pension Plan (CPP) | $1,433.00 |
| Old Age Security (OAS) | $800.44 (for those 75+) |
| Guaranteed Income Supplement (GIS) | ~$600+ (income-dependent) |
| Total Monthly | ~$2,900 |
Important: This is not a new CPP-only increase, but rather the potential combined payout for eligible seniors—especially those aged 75+ with low or moderate income.
How CPP Actually Works
The Canada Pension Plan is a contributory retirement program based on your earnings and contributions during your working years.
To qualify, you must:
- Be 60 years or older
- Have made at least one valid CPP contribution
Your monthly amount depends on:
- Years of contributions
- Amount you earned
- Age you begin collecting CPP
(Taking it early reduces monthly payouts, delaying boosts them)
For example, if you contributed the maximum for 39+ years and begin at age 65, your monthly amount could be $1,433 in 2025.
What Is the CPP Enhancement?
Since 2019, CPP enhancements have been rolling out to gradually increase future payouts. Here’s how:
- Income replacement increased from 25% to 33.33%
- Contribution rates rose slightly
- Maximum pensionable earnings increased to $71,300
- A second earnings tier now exists for incomes between $71,300–$81,200
If you contribute under these new thresholds, you’ll eventually receive higher CPP payments in retirement.
Understanding OAS and GIS
In addition to CPP, retirees may be eligible for OAS and GIS, depending on age and income.
Old Age Security (OAS):
- Paid to Canadians aged 65 or older
- Must have lived in Canada for at least 10 years
- As of 2025:
- Age 75+: $800.44/month
- Under 75: ~$713/month
Guaranteed Income Supplement (GIS):
- Available to low-income seniors
- Paid monthly in addition to OAS
- Based on your annual income, excluding OAS
If your income is below ~$21,000 (single), you may qualify for maximum GIS of over $600/month—helping you reach the $2,900/month figure.
How to Apply for CPP, OAS & GIS
| Step | What to Do | Details |
|---|---|---|
| 1 | Visit My Service Canada Account | Register online or sign in with a GCKey |
| 2 | Apply for CPP from age 60–70 | Delaying adds 0.7% per month, or 8.4% annually |
| 3 | Apply for GIS annually | Based on your latest tax return |
| 4 | Apply for OAS at 65 | Many are enrolled automatically, but confirm eligibility |
Tips to Maximize Your Retirement Income
- Delay CPP: Waiting until 70 can increase your monthly payout by up to 42%
- Avoid GIS clawbacks: Structure RRSP withdrawals carefully
- Use a TFSA: TFSA withdrawals don’t count as income for GIS purposes
- Check your CPP Record: Log in to My Service Canada and confirm your Record of Earnings
Common Mistakes to Avoid
| Mistake | Why It Hurts |
|---|---|
| Thinking CPP is automatic | You must apply to receive it |
| Ignoring GIS | Many low-income seniors miss out by not applying |
| Taking CPP too early | Starting at 60 could cut your monthly amount by up to 36% for life |
While the headlines may be misleading, there is good news for seniors in 2025. If you qualify for CPP, OAS, and GIS, your total federal benefits could reach up to $2,900/month, providing essential support during retirement.
To ensure you’re receiving your full entitlement:
- Apply early
- Update your financial info
- Review your eligibility annually
With smart planning, you can maximize your benefits and secure a comfortable retirement.
FAQs
Is the $2,900 a CPP increase?
No. It’s the combined total of CPP, OAS, and GIS that some eligible seniors may receive.
Who qualifies for GIS?
Low-income seniors with income below ~$21,000 (for singles) may qualify. You must apply annually.
When will July CPP payments be deposited?
Your CPP payment will be made on Monday, July 28, 2025.