CPP and OAS are the two public pensions that form the base of almost every Canadian retirement, and the amount you receive in 2026 depends on how long you contributed, how long you have lived in Canada, and the age at which you start. In 2026 the maximum Canada Pension Plan retirement benefit at age 65 is 1,507.65 dollars a month, while the average new recipient collects far less, about 877.01 dollars. Old Age Security pays up to 751.97 dollars a month for those aged 65 to 74 and up to 827.17 dollars for those 75 and over.

The short answer to when you should take them is that it depends on your health, your other income, and whether the Old Age Security clawback will affect you. Delaying either pension increases the monthly cheque for life, which rewards people who expect a long retirement. Below we explain how CPP and OAS work, exactly how much they pay in 2026, and how to decide when to start.

CPP and OAS Explained: Canada’s Two Pension Pillars

Although people often mention them in the same breath, CPP and OAS are built on completely different foundations. The Canada Pension Plan is an earnings-based program that you pay into during your working years through payroll contributions. What you get back reflects how much and how long you contributed, so a high earner with a full contribution history receives much more than someone who worked part-time or took long career breaks.

Old Age Security works differently. It is a residence-based pension funded from general government revenues, not from your own contributions, so you do not need any work history to qualify. Instead, eligibility depends on how many years you have lived in Canada after age 18. To receive any OAS you generally need at least 10 years of residence, and to receive the full amount you need 40 years. Because it is available to nearly all seniors, OAS also comes with an income test known as the recovery tax, which we cover further down.

CPP and OAS are also administered differently, with one important wrinkle for Quebec. If you work in Quebec you contribute to the Quebec Pension Plan, or QPP, which provides similar benefits under separate administration. Both pensions are indexed to inflation, CPP once a year in January and OAS every quarter, so their purchasing power is protected as prices rise. Neither benefit is always paid automatically. You usually have to apply for CPP, and while many people are automatically enrolled in OAS, Service Canada will tell you if you need to apply yourself.

How Much CPP Will You Get in 2026?

The maximum CPP retirement pension for someone starting at 65 in 2026 is 1,507.65 dollars a month, according to the federal government. Very few people receive the maximum, however, because it requires contributing the yearly maximum for most of your working life. The more realistic figure for most Canadians is the average, which sits near 877.01 dollars a month for new beneficiaries starting at 65. You can see the current figures on the government’s CPP payment amounts page.

Your own CPP amount is calculated from your contribution history and your average earnings over your career, with provisions that drop some of your lowest-earning years. You can start CPP as early as 60 or as late as 70. Starting before 65 reduces the pension by 0.6 percent for each month early, which adds up to a 36 percent reduction if you begin at 60. Waiting past 65 increases it by 0.7 percent per month, up to a 42 percent boost if you wait until 70. That is a powerful, guaranteed, inflation-adjusted increase that no savings account can match.

How Much OAS Will You Get in 2026?

Old Age Security payments are reviewed every quarter and adjusted for inflation. For the current 2026 period the maximum monthly OAS is 751.97 dollars for people aged 65 to 74 and 827.17 dollars for people aged 75 and over, reflecting the permanent 10 percent boost that applies once you reach 75. The official amounts are published on the government’s OAS payment amounts page.

You can begin OAS at 65, or defer it for up to five years. Each month you delay adds 0.6 percent to your payment, so waiting until 70 raises your OAS by 36 percent for the rest of your life. Unlike CPP, OAS cannot be started before 65. Lower-income seniors who receive OAS may also qualify for the Guaranteed Income Supplement, a non-taxable monthly top-up that is not counted here but can add meaningfully to a modest retirement income.

CPP and OAS 2026 Payment Amounts at a Glance

The table below summarizes the key 2026 figures so you can compare the two pensions side by side. Remember that these are maximums or averages; your actual amounts depend on your personal contribution and residence history.

Benefit	2026 monthly amount	Based on
CPP maximum at age 65	1,507.65 dollars	Contributions and earnings
CPP average (new, at 65)	877.01 dollars	Contributions and earnings
OAS maximum, ages 65 to 74	751.97 dollars	Years of Canadian residence
OAS maximum, ages 75 and over	827.17 dollars	Years of Canadian residence
OAS clawback starts at income	95,323 dollars (2026)	Net annual income

When Should You Start CPP and OAS?

There is no single right age, but the trade-off is straightforward. Taking either pension early gives you smaller cheques for more years, while delaying gives you larger cheques for fewer years. If you are in good health, expect to live into your eighties or beyond, and can cover your expenses in the meantime, delaying often produces more total lifetime income. If your health is poor or you need the money now, starting earlier can be the better choice.

A useful way to frame the decision is the break-even age, the point at which the larger delayed payments overtake the smaller early ones in total dollars received. For CPP, delaying from 65 to 70 typically breaks even somewhere in your early to mid eighties, so you come out ahead only if you live beyond that age. Since many Canadians do, and since a higher payment also protects you against outliving your savings, delaying CPP and OAS is often the safer choice for those who can manage the wait. Even so, the right answer is personal, and it depends on your savings, your health, and whether you are still working.

Your other income matters too. If you have strong savings in registered accounts, drawing those down first while you delay CPP and OAS can boost your guaranteed lifelong income. This is where your broader plan comes together, and comparing account types in our guide on RRSP vs TFSA can help you decide how to structure withdrawals. To model how your personal savings grow alongside these pensions, try our TFSA growth calculator or the savings calculator.

The OAS Clawback in 2026

Old Age Security is subject to a recovery tax, commonly called the clawback, that reduces or eliminates your OAS if your income is high. For 2026 the recovery tax begins when your net annual income exceeds 95,323 dollars, and for every dollar above that line you repay 15 cents of OAS until it is fully clawed back at higher income levels. The threshold is confirmed on the government’s OAS recovery tax page.

Because the clawback is based on taxable income, the way you draw your retirement money can protect your OAS. Withdrawals from a TFSA do not count as income, so they do not trigger the clawback, while withdrawals from an RRSP or RRIF do. Splitting eligible pension income with a spouse and timing large withdrawals carefully can also keep you under the threshold. Before you make sure your everyday cash flow is stable, it also helps to have a cushion in place; our guide on how much emergency fund you should have in Canada explains how to size one.

Frequently Asked Questions

Can I receive both CPP and OAS at the same time?

Yes. CPP and OAS are separate programs, and most Canadian retirees receive both. CPP is based on your work contributions and can start as early as 60, while OAS is based on your years of residence in Canada and starts at 65 or later. Receiving one has no effect on your eligibility for the other.

Are CPP and OAS taxable?

Both are taxable income. CPP and OAS payments are added to your taxable income each year and reported on your tax return. OAS is also subject to the recovery tax if your income is high, whereas CPP is not clawed back based on income.

What is the OAS clawback threshold for 2026?

For 2026 the OAS recovery tax begins once your net annual income passes 95,323 dollars. Above that amount you repay 15 percent of the excess, which gradually reduces your OAS. Keeping taxable income below the threshold, for example by using TFSA withdrawals, helps preserve your full pension.

Should I take CPP at 60 or wait until 70?

Starting at 60 reduces CPP by 36 percent, while waiting until 70 increases it by 42 percent compared with starting at 65. If you expect a long life and can afford to wait, delaying usually produces more lifetime income. If you need the money sooner or have health concerns, starting earlier can make more sense.

This article is general information, not personalized financial advice.