The majority of retirees’ two main concerns are health and pensions, which the Canadian government addresses with a variety of programs. Your Old Age Security (OAS) and Canada Pension Plan (CPP) benefits are adjusted yearly to reflect changes in the cost of living or inflation.
 CPP Pension Growth
Through 2024 The CPP pension is undergoing significant changes that will impact both working and retired Canadians starting in the next year. Benefits under the CPP increased by 4.4% in 2023–2024.
This increase is significantly greater than what we have seen in recent years because there has been a noticeable increase in inflation over the last 12 months.
The highest monthly CPP benefit in 2024 will be $1,364.60 instead of $1,306.57 as in 2023 because of the average 4.4% increase in CPI rates. The average monthly CPP benefit is projected to be $758.32 in 2024.
Canadians with jobs will feel the impact of the income cap hike from $66,000 to $68,500. The government is also introducing CPP2, or a “second additional CPP contribution.”
It is situated over the maximum amount that qualifies for pensions. The advantage would be minimal for retirees.
OAS Pension Increase 2024
For the quarter ending in January–March 2024, OAS benefits have increased by 0.80%. Unlike CPP, OAS benefits are adjusted quarterly for increases in the cost of living in January, April, July, and October.
The current 2024 increase in OAS is computed using two three-month periods of CPI data. The maximum monthly OAS payments for January through March 2024 will be $713.34 (for individuals 65 to 74 years old) and $784.67 (for those 75 years and above) accordingly, due to a 0.8% increase in the CPI.
As of July 2022, benefits for seniors 75 years of age or older will automatically increase by 10%.
This will keep going up until 2024. The maximum monthly OAS payout for seniors over 65 is presently $784.67, which is 9% less than the amount earned by seniors between 65 and 74, who receive $713.34.
The Older Canadian Social Security Pension (OWS) and the Canada Pension Plan (CPP) are significant sources of retirement income for older Canadians.
Because it is flexible enough to adjust for inflation and sensitive to individual income levels, it guarantees an equitable distribution based on financial needs.
