There has been recent online discussion about a $400 increase in Canada Pension Plan (CPP) and Old Age Security (OAS) payments set to take place in November 2024.
While the potential increase has sparked interest among Canadian seniors, no official confirmation of this boost has been issued by the Canadian government or the Canada Revenue Agency (CRA).
Here’s a breakdown of what’s currently known, eligibility details, and key clarifications.
Goals Behind the Alleged Increase
The rumored $400 increase is being presented as a response to inflation, rising living costs, and higher healthcare expenses affecting seniors across Canada. Many Canadian seniors rely on CPP and OAS as primary sources of income for covering essentials like housing, food, and medical care.
However, it’s important to remember that CRA has not confirmed any such increase in benefits.
Eligibility for CPP and OAS Benefits
Although the $400 increase is not yet confirmed, here’s a reminder of the general eligibility requirements for CPP and OAS:
- Canada Pension Plan (CPP) Eligibility:
- Must be at least 60 years old and have made CPP contributions while working.
- Most Canadians begin CPP at age 65 to receive the full benefit amount, though CPP can be started earlier or deferred to increase monthly payments.
- Old Age Security (OAS) Eligibility:
- Applicants must be 65 years or older.
- Must have lived in Canada for at least 10 years after turning 18 to qualify for basic OAS.
- Those who have lived in Canada for 40 years or more after age 18 are eligible for the maximum OAS benefit.
CPP and OAS Payment Schedule
For existing CPP and OAS beneficiaries, payments are made monthly on scheduled dates. The rumored increase would theoretically be included in the monthly payment. However, the regular payment dates for CPP and OAS remain as follows:
- November 27, 2024
- December 20, 2024
If you are enrolled in direct deposit, payments are typically received automatically on these dates. For those using paper checks, delivery may take longer.
Applying for CPP and OAS Benefits
If you qualify for CPP or OAS but have not yet applied, here’s how to do it:
- Visit Canada.ca: Go to the official Canada.ca website.
- Create a My Service Canada Account (MSCA): This account allows you to apply and manage your CPP or OAS benefits.
- Complete Application Forms: You will need to provide proof of age, citizenship, and employment history.
- Application Review: After submission, CRA or Service Canada will review your application and notify you of your eligibility status.
Fact Check on the $400 Increase in CPP/OAS
The Canada Revenue Agency (CRA) or Service Canada has not officially announced a $400 increase in CPP or OAS benefits. The current average CPP payment for 2023 is approximately $758.32 per month with the maximum amount reaching $1,306.57 for those who qualify fully.
Annual cost-of-living adjustments (COLA) may result in minor increases, but there is no confirmed plan to raise CPP or OAS benefits by $400.
As with all government benefits, eligibility and payment amounts vary based on individual circumstances, including income, work history, and contributions. To verify updates on CPP or OAS, it’s best to rely on official sources, such as Canada.ca.
While reports of a $400 increase in CPP and OAS benefits may appeal to those facing financial strain, there is currently no official confirmation from Canadian authorities. Always verify such claims through government sources or consult a financial advisor for accurate information on retirement benefits.
