Canada Retirement Income Guide
the retirement income in Canada. The CPP retirement pension (the "Canada Pension Plan") — the maximum monthly payment at age 65 is $1,433 in 2025 (the "average payment is $760"). The OAS pension (the "Old Age Security") — the maximum monthly payment at age 65 is $727 in 2025 (the "OAS clawback" starts at the $90,997 net income — the "full clawback at $141,917"). The GIS (the "Guaranteed Income Supplement") — the maximum $1,092 per month for the "single senior" (the "OAS + GIS = up to $1,819 per month"). The RRIF (the "Registered Retirement Income Fund") — the "RRSP must be converted to the RRIF by December 31 of the year the holder turns 71". The minimum RRIF withdrawal is the "percentage of the RRIF value at the beginning of the year" (the "4% at age 65" — the "5% at age 70" — the "5.28% at age 71" — the "20% at age 94+"). The Retirement Income Calculator is the "official federal calculator" (the "retraite-retirement.service.canada.ca").
CPP Retirement Pension
- CPP eligibility: The "contributions to the CPP during the working years" — the "minimum 1 valid contribution" — the "age 60 to 70". The CPP is the "contributory program" (the "pay-as-you-go" — the "contributions from the employees, the employers, and the self-employed").
- CPP payment amounts (2025): The "maximum at age 65: $1,433 per month". The "average at age 65: $760 per month". The "early CPP at age 60: the 36% reduction" (the "0.6% per month before age 65" — the "maximum at age 60: $917 per month"). The "late CPP at age 70: the 42% increase" (the "0.7% per month after age 65" — the "maximum at age 70: $2,035 per month").
- CPP enhancement: The "enhanced CPP" started in 2019 — the "additional 33% on the pensionable earnings above the YMPE" (the "Year's Maximum Pensionable Earnings" — the "$71,300 in 2025"). The enhancement is phased in over the 2019-2025 period.
- Post-retirement CPP benefit: The "working while collecting the CPP" — the "post-retirement benefit" (the "PRB") — the "additional CPP contributions increase the retirement income".
OAS & GIS
- OAS eligibility: The "age 65+" — the "Canadian citizen or the legal resident" — the "residence in Canada for at least 10 years after the age 18" (the "partial OAS for 10-40 years"). The "full OAS requires 40 years of the residence".
- OAS clawback (recovery tax): The "15% clawback on the net income above $90,997 (2025)". The "full clawback at $141,917 (2025)". The clawback is the "repayment of the OAS through the tax return" (the "OAS recovery tax" — the "form T1-OAS").
- GIS: The "Guaranteed Income Supplement" — the "additional benefit for the low-income seniors" (the "OAS recipients with the low income"). The GIS is the "non-taxable benefit". The "senior with the OAS + GIS = up to $1,819 per month for the single senior" (the "$2,163 per month for the senior couple").
- OAS deferral: The "voluntary deferral of the OAS" — the "0.6% increase per month after age 65" (the "36% increase by age 70"). The OAS deferral is the "similar to the CPP deferral".
RRIF & Employer Pensions
- RRIF: The "RRSP must be converted to the RRIF by December 31 of the year the holder turns 71". The RRIF is the "income stream" — the "minimum annual withdrawal" (the "RRIF minimum" — the "schedule of the minimum payments"). The RRIF payments are the "fully taxable".
- Employer pension (RPP): The "Registered Pension Plan" — the "defined benefit (DB)" (the "guaranteed monthly payment based on the years of the service and the salary") — the "defined contribution (DC)" (the "investment-based payout — the plan member bears the investment risk").
- Annuity: The "insurance company product" — the "guaranteed monthly payment for the life" — the "life annuity" or the "term-certain annuity". The annuity is the "insurance against the longevity risk".
For the RRSP contributions and the deduction limits, see our RRSP Guide →. For the CPP details and the contribution rates, see our CPP Guide →. For the OAS and the GIS details, see our OAS & GIS Guide →.