Urgent Update: CPP and OAS Payments Arrive Thursday for Canadians

UPDATE: The next round of Canada Pension Plan (CPP) and Old Age Security (OAS) payments will hit bank accounts across Canada this Thursday, October 5, 2023. This vital financial support is crucial for millions of Canadians aged 60 and older, ensuring they have the funds they need to live comfortably.

WHAT YOU NEED TO KNOW NOW: The CPP is a monthly, taxable payment available to anyone who has contributed to the plan while working. Eligible recipients will receive these payments for the rest of their lives. Meanwhile, the OAS, which begins at age 65, is automatically granted to most individuals by Service Canada, providing essential income to seniors.

WHO WILL RECEIVE THE PAYMENTS? All workers in Canada, except those in Quebec with a provincial pension plan, are automatically enrolled in the CPP. Both employees and employers contribute through payroll deductions, with employees paying a 5.95 percent rate on earnings up to $71,300. For earnings exceeding that, an additional 4 percent applies, up to $81,200. Self-employed individuals must cover both employer and employee contributions.

The OAS pension is available to individuals aged 65 or older, regardless of their work history. Applicants must be Canadian citizens or legal residents and have lived in Canada for at least 10 years since turning 18. For those living abroad, eligibility requires being a citizen or legal resident at the time of departure and having resided in Canada for a minimum of 20 years.

HOW MUCH CAN YOU EXPECT? The maximum monthly CPP payment at age 65 is $1,433, although many receive less. The average pension payout for new retirees at that age was approximately $800 as of October 2024. For OAS, payments from July to September capped at $734.95 for those aged 65-74, while recipients aged 75 and older can receive up to $808.45. Note that this amount will increase by 0.7 percent for the upcoming quarter based on the Consumer Price Index.

ARE THERE EXCEPTIONS TO PAYMENTS? Canadians who have taken time off work due to disability or caregiving responsibilities can rest assured that these periods will not negatively impact their CPP payments. The government allows for the “drop-out” of up to 8 years of low earnings from an individual’s earnings history.

Moreover, those under 70 who continue to work while receiving CPP benefits can still contribute to the plan. Each contribution will lead to a post-retirement benefit, improving retirement income in subsequent years. Contributions cease at age 70, regardless of continued employment.

UPCOMING PAYMENT DATES: Following this week’s payments, additional CPP and OAS dates for the remainder of 2023 will be announced soon.

Stay tuned for further updates as the government continues to provide vital support to Canadians in need. Ensure you are prepared for these payments, as they significantly impact the financial well-being of our senior population.

This is a critical development for Canadians—share this information widely to help ensure everyone knows when to expect their payments.