There’s been a buzz lately: social media posts claim that in October 2026, Canada will raise the eligibility age for Old Age Security (OAS) or slash Canada Pension Plan (CPP) benefits. In reality, no official changes have been announced. What is true is the incremental adjustments already in place and the ongoing CPP enhancement that will continue through 2025. Let’s separate fact from fiction, explain today’s rules, and show what might or might not change by 2026.
Table of Contents
Understanding OAS & CPP: Canada’s Retirement Pillars
- Old Age Security (OAS): A non-contributory pension funded from general revenues, payable at age 65 (with optional deferral). Indexed quarterly to inflation.
- Canada Pension Plan (CPP): A contributory system where you and your employer (or you, if self-employed) contribute on earnings between the exemption and a maximum threshold. Benefits depend on how much and how long you contributed.
These two programs work together: many Canadians receive both OAS and CPP in retirement.
“OAS is your universal base; CPP rewards consistent work and contributions,” says retirement planner L.M.
What Is Changing (2025–2026) — And What Is Not
What IS happening
- CPP Enhancement continues through 2025: The enhancements (higher contribution rates, extended benefit basis) remain active until fully phased in.
- CPP Contribution Limits for 2025:
• Year’s Maximum Pensionable Earnings (YMPE) will be $71,300 in 2025.
• Corresponding maximum employee/employer contribution: $4,034.10 each.
• Additional “CPP2” contributions apply on earnings between $71,300 and $81,200, at a rate of 4.00% (employer and employee) with a max of $396 each. - OAS Inflation Indexing: OAS benefits are adjusted quarterly (January, April, July, October) based on CPI.
- OAS Clawback Thresholds: In 2025, the OAS clawback (or recovery tax) applies when net world income passes about $93,454 to $151,668 for persons aged 65–74.
What is not confirmed
- No government document or bill has been published or passed that raises the age of OAS or CPP eligibility to 67 or beyond in October 2026.
- No changes to the core structure or benefit formula for OAS/CPP have been formally announced.
- Any major reform would require public consultation, budget proposals, and legislation — not rumors or viral videos.
Overview of CPP and OAS (as of 2025–2026)
| Aspect | Old Age Security (OAS) | Canada Pension Plan (CPP) |
|---|---|---|
| Funding Source | General tax revenues | Employee and employer contributions |
| Eligibility Age | 65+ | 60–70 (you choose when to start) |
| Residency Requirement | Minimum 10 years in Canada after age 18 | Must have at least one valid contribution |
| Average Monthly Benefit (2025) | ~$707 | ~$1,300 |
| Maximum Monthly Benefit (2025) | $784.67 (age 65) | $1,364.60 (age 65) |
| Inflation Adjustment | Quarterly (Jan, Apr, Jul, Oct) | Annual (January) |
| Recent Policy Change | +10% OAS boost for seniors aged 75+ (since July 2022) | CPP Enhancement Phase 5 (2019–2025 rollout) |
| Administration | Service Canada | Canada Pension Plan Investment Board (CPPIB) |
Current & Projected Rates and Limits
Here’s a look at what’s known today and what might evolve by 2026:
| Metric | 2025 Value | Notes / Projection |
|---|---|---|
| YMPE (CPP maximum earnings) | $71,300 | Likely to increase in line with wage growth |
| CPP Contribution Rate (base) | 5.95% (employee & employer) | Maintained from 2024 |
| CPP2 Rate (excess earnings) | 4.00% on $71,300–$81,200 region | Additional contributions for high earners |
| Maximum Base CPP Contribution | $4,034.10 | Employee & employer each |
| Maximum CPP2 Contribution | $396 | For income between YMPE and YAMPE |
| OAS Quarterly Increase (Oct–Dec 2025) | +0.7% adjustment | Reflects inflationary pressure |
“By 2025, a higher YMPE means more people pay into CPP and earn a bit more in retirement — but it’s gradual, not disruptive,” says economist G.F.
Why the 2026 Rumors Spread so Widely
- Past proposals resurfaced: A plan proposed in 2012 to raise the OAS age to 67 is often brought back in conversations, but was reversed and never enacted.
- Misinterpretation of CPP Enhancement: Some interpret “enhancement” as raising retirement age rather than increasing contributions.
- Viral content and fear narratives: Emotional claims about “cuts” or “losses” spread faster than sober analysis.
- Lack of awareness of indexing rules: Inflation adjustments or clawbacks get misread as structural changes.
How to Check Your OAS and CPP Status
- My Service Canada Account: View your CPP contributions, estimated pension, and OAS eligibility.
- Annual statements: CRA or Service Canada sends statements that reflect contribution history.
- Estimate tools: There are official calculators to simulate your CPP/OAS based on age, deferral, and income.
- Stay updated on legislation: Watch for federal budgets or bills affecting pensions before accepting rumors.
What SHOULD You Expect in 2026
If changes do come in the future, they may include:
- Incremental increases to YMPE and contribution rates (as part of CPP sustainability)
- Adjusted OAS clawback thresholds
- Inflation indexing continuing, maybe with tweaks to quarterly timing
- No abrupt increases to eligibility ages without long lead times and public consultation
FAQs
Q1. Are CPP or OAS ages going up in October 2026?
Ans. No. As of now, no official change has been confirmed. All current rules remain in force.
Q2. Will my OAS or CPP benefits change in 2026?
Ans. Only in standard ways — CPP annually indexed, OAS quarterly inflation adjustments. No structural overhaul is announced.
Q3. What is the 2025 maximum CPP contribution?
Ans. In 2025, both employee and employer contribute up to $4,034.10 (5.95% rate on earnings up to $71,300).
Plus, for earnings between $71,300 and $81,200, a CPP2 rate of 4% applies, with a max of $396 additional.
Q4. How are OAS payments adjusted?
Ans. OAS is indexed to inflation and adjusted quarterly. The October–December 2025 increase was 0.7%.
Q5. Can I delay OAS or CPP to increase payments?
Ans. Yes. Delaying OAS beyond age 65 increases monthly amounts. CPP also allows deferral with higher benefits.
Q6. How to verify any future changes?
Ans. Watch for proposals in federal budgets, check Canada.ca, Service Canada, or Department of Finance — not social media.