CPP and OAS: Can You Collect Both at the Same Time?
Yes — and most Canadians do. But understanding how these two programs work together, and how to maximize both, can make a significant difference in your retirement income.
Here is what every Canadian needs to know.
What Is CPP?
The Canada Pension Plan is a contributory program. You earn CPP entitlement by working and making contributions throughout your career. Your employer matches your contributions. Self-employed Canadians pay both the employee and employer portions.
The amount you receive in retirement depends on how much you contributed and for how long. The maximum CPP in 2024 is approximately $1,364 per month, but most Canadians receive considerably less — the average is closer to $750 to $900 per month.
You can start CPP as early as 60 or as late as 70.
What Is OAS?
Old Age Security is a universal program. Unlike CPP, it is not based on your work history or contributions. It is paid to virtually all Canadians who are 65 or older and have lived in Canada for at least 10 years after age 18.
To receive the full OAS amount, you need to have lived in Canada for 40 years after age 18. If you have lived here for fewer years, you receive a prorated amount.
The current OAS amount is approximately $698 per month at age 65 (2024 figures). Like CPP, OAS is indexed to inflation.
Yes, You Can Collect Both
CPP and OAS are entirely separate programs. Collecting one has no impact on the other. Most retired Canadians collect both simultaneously.
Combined, CPP and OAS can provide anywhere from $1,400 to over $2,000 per month in guaranteed, inflation-indexed income — for life.
Timing: They Do Not Have to Start at the Same Time
This is where strategy comes in.
CPP can start between age 60 and 70. Early reduces your payment permanently. Late increases it permanently.
OAS can start at 65, or you can delay it up to age 70 for a 0.6% increase per month of delay — a maximum increase of 36% if you wait until 70.
Many Canadians start these programs at different ages based on their income needs and tax situation. For example, a Canadian might take CPP at 65 but delay OAS to 70 for the higher guaranteed income, especially if they expect to live a long time.
The OAS Clawback — What It Is and How to Avoid It
OAS comes with an income test called the OAS Recovery Tax, commonly known as the clawback. If your net income in retirement exceeds approximately $90,997 (2024 threshold), you begin losing OAS at a rate of $0.15 for every dollar above that threshold.
At roughly $148,000 of net income, your OAS is clawed back entirely.
This affects higher-income retirees — but it catches many people by surprise because RRIF withdrawals, investment income, and rental income all count toward the threshold.
Strategic planning of your retirement income sources — using TFSA withdrawals instead of RRIF withdrawals when possible, pension splitting with a spouse, and careful timing of large withdrawals — can help Canadians stay below the clawback threshold and keep their full OAS.
The Guaranteed Supplement — For Lower-Income Retirees
If your income in retirement is low, you may also qualify for the Guaranteed Income Supplement (GIS), which is an additional tax-free benefit paid on top of OAS.
The GIS is income-tested and starts reducing as your income rises. It is designed to help lower-income Canadians maintain a basic standard of living in retirement.
If you are receiving OAS and your income is modest, check your eligibility for GIS through Service Canada.
How to Check Your CPP Estimate
The best way to see your personal CPP entitlement is through your My Service Canada Account online. It shows your projected CPP amount at age 60, 65, and 70 based on your actual contribution history.
This is one of the most useful financial planning tools available to Canadians — and most people have never looked at it.
The Bottom Line
Yes, you collect both CPP and OAS. They are separate, independent programs that work together to form the foundation of most Canadian retirements. The key is understanding when to start each one, how they interact with your other income sources, and how to avoid the OAS clawback.
Getting these decisions right is worth taking the time to plan carefully — ideally several years before you retire.
This article is for educational purposes only and does not constitute personalized financial advice. For retirement income planning guidance, speak with a qualified financial planner at FP Canada.
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