Canadian seniors are receiving a welcome boost in June 2025, as both the Canada Pension Plan (CPP) and Old Age Security (OAS) payments are set to increase. With the rising cost of groceries, utilities, housing, and other essential services, even modest increases to retirement benefits can make a meaningful difference in the lives of retirees. The Canada Revenue Agency (CRA) has confirmed the exact pension increases, offering some financial relief for those living on fixed incomes.
This mid-year adjustment reflects the federal government’s ongoing efforts to ensure that public pension benefits keep pace with inflation and the financial realities facing Canada’s aging population.
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Why CPP and OAS Are Increasing in June 2025
Both CPP and OAS are indexed to inflation, which means their payment amounts are adjusted periodically based on changes in the Consumer Price Index (CPI). These increases ensure that pensioners do not lose purchasing power as the cost of living rises. Typically, CPP is reviewed annually in January, while OAS is adjusted quarterly (January, April, July, and October). However, a mid-year increase has been confirmed by the CRA for June 2025 due to recent economic data indicating persistent inflation pressures.
This rare mid-year increase is designed to better align federal retirement support programs with current cost-of-living conditions, offering more immediate relief for older Canadians.
CPP Payment Increase: How Much Will You Get?
CPP payments vary from person to person depending on individual earnings and contributions throughout their working life, as well as the age at which they begin collecting their benefits. For June 2025, the average CPP retirement pension is set to rise slightly due to the inflationary adjustment.
- Average CPP Retirement Benefit (Age 65):
Previously around $800.61/month, now rising to approximately $899.67/month after the adjustment. - Maximum Monthly CPP Payment (Age 65):
Increasing from $1,364 to about $1,433, though few Canadians qualify for the maximum.
These adjustments will automatically apply to existing beneficiaries, with no action required on their part.
$1433 CPP + $800.44 OAS Payments Coming in June 26, 2025: What You Need to Know
OAS and GIS Increases: What Seniors Can Expect
Old Age Security (OAS) is also getting a raise. Unlike CPP, which is based on contributions, OAS is available to seniors based on residency and age. It is also adjusted quarterly, and the June 2025 increase reflects the latest CPI figures.
- Seniors aged 65 to 74:
Will see their OAS base payment increase from $713.34/month to about $727.67/month. - Seniors aged 75 and older:
Already receiving a 10% enhancement since 2022, their payments will increase from $784.67/month to approximately $800.44/month.
Additionally, those receiving the Guaranteed Income Supplement (GIS), which supports low-income seniors, will also benefit from an inflation-linked boost. The exact amount will depend on income and marital status.
Who Is Eligible?
To receive the updated CPP and OAS payments in June 2025, Canadians must meet the standard eligibility requirements:
- CPP Eligibility:
Must have contributed to the Canada Pension Plan during working years and be at least 60 years old. - OAS Eligibility:
Must be 65 or older and have lived in Canada for at least 10 years after turning 18. A full pension usually requires 40 years of residency.
GIS is available to low-income seniors already receiving OAS, with eligibility based on annual income levels and family status.
Why These Increases Matter
For seniors living on a fixed income, every dollar counts. The June 2025 pension increases help counteract inflation and offer seniors more security in covering everyday expenses such as food, medication, transportation, and utilities. While the increases may not be large, they reaffirm the government’s commitment to supporting older Canadians during uncertain economic times.
How to Check Your Payment Amount
Eligible seniors can view the updated pension amounts and payment dates by logging into their CRA My Account or Service Canada Account. The increases will automatically appear in the June payment cycle.
Those expecting direct deposit will see the new amounts reflected in their bank accounts by the end of the payment week in June. Seniors receiving paper cheques may experience a slight mailing delay.
Final Thoughts
The June 2025 increases to CPP and OAS payments provide modest but essential support to Canadian retirees. As inflation continues to impact daily living expenses, these adjustments demonstrate the federal government’s intent to maintain the value of public pensions and protect the financial well-being of older adults.
While not a comprehensive solution to all economic pressures, the updates serve as a timely reminder of the importance of inflation-indexed income supports—and signal the potential for further enhancements in future federal budgets.