Retirement planning is one of the most important steps toward financial security, and knowing how much you can receive from government benefits is key. In 2025, the $2,166 CRA Pension Benefit combines the maximum Canada Pension Plan (CPP) and Old Age Security (OAS) payments, providing crucial support for retirees.
With changes to CPP and OAS coming in 2025, it’s a great time to review your eligibility and ensure you’re maximizing your benefits. Whether you’re already retired or planning ahead, this guide will break down everything you need to know.
Payment
| Aspect | Details |
|---|---|
| Maximum CPP Payment | Up to $1,364.60 per month (2025) |
| Maximum OAS Payment | $784.67 (Age 75+), $713.34 (65-74) |
| Total Monthly Benefit | Up to $2,166 for eligible recipients |
| Eligibility Criteria | CPP: Contributions; OAS: Residency |
| Official Source | Canada Pension Plan & Old Age Security |
The $2,166 CRA Pension Benefit represents the maximum combined monthly payments for retirees receiving both CPP and OAS. Knowing the details of these benefits is essential for maximizing your retirement income.
Canada Pension Plan (CPP)
CPP is a contributory pension, meaning you must pay into the system during your working years to receive benefits in retirement.
CPP Payment Breakdown (2025)
- Maximum Monthly Payment: $1,364.60
- Average Monthly Payment: $758.32
- Contribution Cap: $68,500 (income threshold for contributions)
The amount you receive depends on how much and how long you’ve contributed. Higher lifetime earnings and consistent contributions lead to larger CPP payments.
Eligibility for CPP
You qualify for CPP if:
You’re at least 60 years old (reduced benefits apply before 65)
You’ve made sufficient CPP contributions through work or self-employment
You apply for benefits—CPP is not automatic
CPP Enhancements in 2025
The annual contribution cap is rising to $68,500, meaning higher earners will contribute more, leading to larger future benefits. This is part of the government’s long-term plan to enhance retirement income for Canadians.
Old Age Security (OAS)
OAS is a government-funded pension that does not require contributions, but eligibility is based on residency in Canada.
OAS Payment Breakdown (2025)
- Ages 65-74: Up to $713.34 per month
- Ages 75+: Up to $784.67 per month (+10% increase for seniors 75+)
- Income Threshold for Clawback: $86,912 (2025)
Eligibility for OAS
You must be 65 or older
You’ve lived in Canada for at least 10 years after age 18
For payments while living abroad, you must have 20+ years of Canadian residency
Higher Payments for Seniors 75+
To support older retirees with higher medical and living costs, OAS payments increase by 10% for those aged 75 and older.
Qualify for $2,166
Log into My Service Canada Account to check your contribution history and estimated CPP payment.
Verify Your OAS Residency
Confirm your years of Canadian residency to ensure OAS eligibility.
If you’ve lived or worked outside Canada, you may still qualify through international social security agreements.
Calculate Your Total Benefits
Use the Government of Canada’s pension calculator to estimate your combined CPP + OAS benefits.
Monthly Pension Payments
| Scenario | Monthly CPP | Monthly OAS | Total Pension |
|---|---|---|---|
| Max CPP & OAS (Age 65) | $1,364.60 | $713.34 | $2,077.94 |
| Max CPP & OAS (Age 75+) | $1,364.60 | $784.67 | $2,149.27 |
| Avg CPP & OAS (Age 65) | $758.32 | $713.34 | $1,471.66 |
| Avg CPP & OAS (Age 75+) | $758.32 | $784.67 | $1,542.99 |
Your actual pension will depend on your CPP contributions and residency history for OAS.
Maximize Your Pension Benefits
- Work consistently in jobs that deduct CPP contributions.
- If self-employed, contribute both employee and employer portions to maximize benefits.
Delay OAS for Higher Payments
- Deferring OAS past 65 increases payments by 0.6% per month, up to 36% more at age 70.
- This strategy works best if you have other income sources to cover early retirement years.
Avoid OAS Clawbacks
- OAS is reduced for incomes above $86,912 (2025).
- Use income-splitting with a spouse and tax-efficient withdrawals from RRSPs or TFSAs.
Stay Updated on Changes
- Government policies change, so check Service Canada updates regularly to maximize your benefits.
The $2,166 CRA Pension Benefit provides essential financial security for retirees, but not everyone qualifies for the full amount. To maximize your pension, ensure you:
✔ Contribute consistently to CPP
✔ Meet the residency requirements for OAS
✔ Consider deferring benefits for larger payouts
✔ Plan strategically to avoid OAS clawbacks
By taking proactive steps, you can secure a comfortable retirement and make the most of your government pension benefits in 2025 and beyond.
FAQs
What is the $2,166 CRA Pension Benefit?
It’s the combined maximum CPP and OAS payments retirees can receive in 2025.
Who qualifies for the full $2,166 benefit?
Canadians who contributed enough to CPP and meet OAS residency requirements.
Can I increase my CPP payments?
Yes, delaying CPP past 65 increases payments by 8.4% per year up to age 70.
Is OAS taxable?
Yes, OAS payments are taxable and may be reduced if income exceeds $86,912.
How do I check my CPP contributions?
Log into My Service Canada Account to view your CPP contribution history.
