CPP+OAS: How Much Will You Get as CPP and OAS Combined? Full Benefits Explained
Planning for retirement is very important. One key part of this planning is knowing how much money you will get from your pensions. In Canada, there are two main pensions: the Canada Pension Plan and the Old Age Security. This article will explain how much you can get from these pensions combined, and how to maximize your benefits.
What is CPP and OAS?
Canada Pension Plan is a pension plan for workers in Canada. If you have worked and paid into the CPP, you can get monthly payments when you retire.
Old Age Security is a pension plan for people over 65. You do not need to have worked or paid into it to receive OAS.
How Much Can You Get from CPP?
The amount you get depends on how much you paid into it while working, and at what age you start receiving it.
- Maximum Canada Pension Plan Payment (2023): $1,306.57 per month
- Average Canada Pension Plan Payment (2023): $772.71 per month
- Canada Pension Plan Post-Retirement Benefit: $40.25 per month (max)
If you start your Canada Pension Plan at age 70, you can get more money. If you worked and paid for many years, your payment could be higher.
How Much Can
The amount you get depends on your age and how long you have lived in Canada.
- Maximum OAS Payment (2023): $707.68 per month (age 65-74)
- Maximum OAS Payment (2023): $778.45 per month (age 75+)
Combined Payments
To find out how much you can get from both pensions, you add the Canada Pension Plan and OAS payments together.
- Example Combined Payment (Max CPP and OAS at 65-74): $1,306.57 + $707.68 = $2,014.25 per month
- Example Combined Payment (Max CPP and OAS at 75+): $1,306.57 + $778.45 = $2,085.02 per month
Important Factors Affecting Your Pension
Several factors can change how much you get .:
- Age: Delaying can increase your monthly payments.
- Contributions: The more you pay, the more you will get.
- Residence: To get full OAS, you must live in Canada for at least 40 years after age 18.
Maximizing Your Benefits
Here are some tips to maximize your pension benefits:
- Delay Your Pension: If you can, wait until age 70 to start receiving CPP and OAS. This increases your monthly payments.
- Keep Working: If you work past 65, you can still contribute and increase your pension.
- Share Your Pension: If you and your spouse both get CPP, you can share your pensions to save on taxes.
How to Check Your Amount
You can check how much you will get from your CPP and OAS using your My Service Canada Account online. This account will show you your contributions and estimated benefits.
Important Data in Table Format
Here is a summary of the important data
| Benefit Type | Age Range | Maximum Monthly Payment (2023) |
|---|---|---|
| CPP | Any | $1,306.57 |
| CPP Post-Retirement Benefit | Any | $40.25 |
| OAS | 65-74 | $707.68 |
| OAS | 75+ | $778.45 |
FAQs
Q: Can I get CPP if I never worked?
A: No, it is based on your work history and contributions. If you never worked, you will not receive CPP. However, you can still receive OAS if you meet the residency requirements.
Q: What happens if my income is high?
A: If your income is above a certain threshold, you may have to repay part of your OAS. For example, in 2022, if your income was more than $81,761, you would need to repay some OAS.
Q: Can I get both CPP and OAS outside Canada?
A: Yes, you can receive both CPP and OAS even if you live outside Canada, as long as you meet the eligibility criteria. However, certain conditions apply for OAS based on how long you lived in Canada.
Conclusion
Knowing how much you can get from CPP and OAS combined is key to planning your retirement. By understanding the factors that affect your pension and taking steps to maximize your benefits, you can ensure a more secure financial future. Use your My Service Canada Account to keep track of your contributions and plan ahead for the best results