Canadian seniors will see a welcome boost to their retirement income in 2026 as both the Canada Pension Plan (CPP) and Old Age Security (OAS) payments are scheduled to increase by 2% to keep pace with the rising cost of living. The adjustments, calculated annually using the Consumer Price Index (CPI), aim to help retirees maintain their standard of living amid economic fluctuations.
Payment Schedule for 2026
The CPP and OAS payments will be deposited into bank accounts on specific dates throughout the year for those who have signed up for direct deposit. The scheduled payment dates for 2026 are as follows:
- January 28
- February 25
- March 27
- April 28
- May 27
- June 26
- July 29
- August 27
- September 25
- October 28
- November 26
- December 22
Canada Pension Plan Details
Payment Increases and Amounts
CPP payments are set to rise by 2% in 2026, reflecting the annual cost-of-living adjustment. For January 2026, the maximum CPP payment at age 65 is projected to be $1,507.65 per month. However, the average CPP payment at age 65, based on October 2025 data, was $803.76 per month, highlighting the variability in individual benefits.
Eligibility and Application
To qualify for CPP, individuals must be at least 60 years old and have made at least one valid contribution to the plan during their working years. While the standard age to start receiving CPP is 65, options exist to begin as early as age 60 or as late as age 70. It is important to note that starting earlier results in smaller monthly payments, while delaying until age 70 maximizes the monthly amount.
Applicants must actively apply for CPP benefits, ensuring they meet the eligibility criteria and select their preferred start date before submitting their application. The calculation of CPP payments considers multiple factors, including the age at which benefits commence, the amount and duration of contributions, and average earnings over one's working life.
Old Age Security Updates
Quarterly Adjustments
OAS benefits are reviewed quarterly in January, April, July, and October to align with cost-of-living changes, also using the CPI. For the January to March 2026 quarter, OAS payments have increased by 0.3%, contributing to an overall 2% rise over the past year.
Eligibility and Enrollment
OAS is a monthly payment available to Canadians aged 65 and older. In many cases, Service Canada can automatically enrol eligible individuals if sufficient information is available, notifying them of their enrollment status. Those who are not automatically enrolled may need to apply separately.
Benefit Amounts
From January to March 2026, the maximum OAS payment for Canadians aged 65 to 74 is $742.31 per month. For those aged 75 and over, the maximum payment increases to $816.54 per month, providing additional support for older seniors.
Conclusion
The 2% increase in CPP and OAS payments for 2026 offers crucial financial relief for Canadian retirees, helping them navigate the challenges of inflation. By understanding the payment dates, eligibility requirements, and benefit calculations, seniors can better plan their retirement income and ensure they receive the full support they are entitled to under these vital social programs.
