If you’re among the millions of Canadians receiving Canada Pension Plan or Old Age Security benefits, mark your calendar: December 22, 2025 is when your final payments of the year will arrive. This timing gives you access to funds well before the holiday rush, but there’s more to this payment than just the date.
Let’s walk through everything you need to know about your December CPP and OAS payments, what amounts you can expect, and the changes coming in 2026 that could affect your retirement income.
When Your December Payment Arrives
Service Canada deposits both CPP and OAS payments directly into recipients’ bank accounts on December 22. If you still receive paper cheques, expect delivery within a few business days after that, though postal schedules during the holidays can vary.
This date isn’t random. December payments typically land in the third week of the month, ensuring seniors have funds available during one of the year’s most expensive periods—when heating bills peak, holiday expenses pile up, and year-end costs converge.
For 2026, here’s when you can expect your payments throughout the year:
January 28 | February 25 | March 27 | April 28 | May 27 | June 26 | July 29 | August 27 | September 25 | October 28 | November 26 | December 22
Notice that December 2026 also falls on the 22nd. Service Canada maintains consistency where possible, making it easier to plan your budget months in advance.
Understanding Your Payment Amount
Not all CPP recipients receive the same amount, and that’s by design. Your monthly payment reflects your unique earnings history and contribution record.
CPP Payment Ranges
The maximum monthly CPP retirement benefit for someone starting at age 65 in 2025 sits at $1,433. But here’s the reality: most people don’t receive the maximum. The average Canadian collects around $900 per month from CPP.
Why the difference? Three main factors determine your CPP amount:
Your lifetime earnings matter most. The program looks at what you earned throughout your career and how much you contributed. If you had periods of lower income or gaps in employment, your benefit reflects that.
Contribution years play a crucial role. CPP uses a formula that drops out your lowest-earning 17% of years. This provision helps if you took time off for caregiving, education, or career changes. You need at least one valid CPP contribution to qualify, and maximizing your benefit requires contributing at the maximum level for roughly 39 years.
When you start receiving benefits permanently affects your monthly amount. CPP gives you flexibility—you can begin collecting anytime between ages 60 and 70. But that choice has lasting consequences:
- Start at 60: Your payment drops by 0.6% for each month before 65 (up to 36% reduction)
- Start at 65: You receive the standard benefit you’ve earned
- Delay until 70: Your payment increases by 0.7% per month (up to 42% boost)
There’s no advantage to waiting past 70. The enhancements stop at that age, so if you reach 70 and haven’t started CPP, begin immediately.
OAS Payment Structure
Old Age Security works differently from CPP. Instead of being tied to employment contributions, OAS depends on how long you’ve lived in Canada after turning 18.
Standard OAS amounts for 2025 are approximately $713 for recipients aged 65-74, while those 75 and older receive about $785 monthly due to an automatic 10% increase. This age-based boost recognizes that older seniors often face higher costs and may have depleted other savings.
To qualify for the full OAS pension, you need 40 years of Canadian residency after age 18. Spent part of your adult life abroad? You might still receive partial OAS based on your years in Canada. Generally, you need at least 10 years of residency after 18 to qualify for any OAS, though international social security agreements can help bridge gaps if you worked in partner countries.
One important consideration: OAS includes an income test. If your annual income exceeds certain thresholds, you’ll face what’s commonly called the “OAS clawback”—a recovery tax that reduces or eliminates your OAS benefit. High-income seniors need to factor this into retirement planning.
The Key Difference Between CPP and OAS
Many people lump these benefits together, but they operate on fundamentally different principles.
CPP is an insurance program. You and your employer paid premiums through payroll deductions during your working years. Self-employed individuals paid both portions. Your benefit directly reflects what you contributed. Think of it as a forced retirement savings plan administered by the government.
OAS is a social benefit funded through general tax revenues. You didn’t pay specifically into OAS during your working years—your regular income taxes funded the program. Eligibility depends on age and residency, not employment or contributions. This means even people who never worked in Canada can receive OAS if they meet residency requirements.
Both programs are taxable income. You’ll receive T4A(P) slips for CPP and T4A(OAS) slips for OAS that must be reported on your tax return. This matters for tax planning, especially if you have other income sources.
Why December 22 Matters for Your Budget
December presents unique financial pressures for most households. Heating costs climb as temperatures drop. Holiday expenses appear—gifts, travel, special meals. Property taxes and insurance premiums often come due. Medical expenses may increase, especially if you’re trying to maximize insurance benefits before year-end.
Having your CPP and OAS payment arrive on December 22 means you have funds available to manage these competing demands without scrambling or relying on credit. It’s particularly valuable for fixed-income households where every dollar needs a job.
This year’s December 22 payment is your last deposit calculated at 2025 rates. Understanding what changes in January helps you prepare for the year ahead.
What’s Changing in 2026
Both CPP and OAS increase annually to protect your purchasing power against inflation, but they follow different schedules.
CPP Increases
CPP benefits adjust once per year on January 1st. The increase is tied to the Consumer Price Index from the previous year, ensuring your benefit maintains its real value even as prices rise.
Your January 28, 2026 payment will reflect the new, higher CPP rate. The exact percentage increase is calculated based on CPI data, so the adjustment reflects actual inflation rather than arbitrary numbers.
This means January brings a welcome boost. If you’re receiving $900 monthly now, a 2-3% increase translates to an extra $18-27 per month—modest individually, but meaningful over a full year, especially combined with OAS adjustments.
OAS Quarterly Reviews
OAS operates differently, with quarterly reviews in January, April, July, and October. This more frequent adjustment schedule means OAS can respond faster to inflation changes than CPP’s annual review.
The January 2026 OAS increase will reflect cost-of-living changes from mid-to-late 2025. If inflation remained elevated during that period, your OAS payment could see a meaningful bump.
For seniors receiving both CPP and OAS, these staggered increases provide inflation protection throughout the year rather than a single annual adjustment.
Additional CPP Benefits You Should Know About
CPP isn’t just a retirement pension. The program provides several types of support that many people overlook:
Post-Retirement Benefits allow you to keep building CPP even after you start collecting. If you continue working while receiving CPP and you’re under 70, additional contributions earn Post-Retirement Benefits that permanently increase your monthly payment. This matters for Canadians who transition gradually into retirement or take on part-time work in their later years.
Disability benefits support contributors who can no longer work due to severe and prolonged disability. Eligibility depends on your recent contribution history and medical documentation. CPP disability payments continue until age 65, when they automatically convert to retirement benefits.
Survivor and death benefits provide financial support to families after a contributor dies. This includes monthly survivor pensions for spouses or common-law partners, benefits for dependent children, and a one-time death benefit. These payments help stabilize household income during difficult transitions.
Pension sharing between spouses or partners can optimize your tax situation in retirement. If one partner has significantly higher CPP income than the other, sharing can reduce overall tax liability.
Maximizing Your CPP and OAS Benefits
Smart decisions about when to start benefits and how to structure them can add thousands of dollars to your lifetime retirement income.
Strategic Timing
The decision of when to begin CPP is one of the most important retirement choices you’ll make. Starting early gives you money sooner but permanently reduces your monthly amount. Delaying increases each payment but means fewer total payments if you don’t live as long.
Consider your health, other income sources, and longevity expectations. If you’re healthy with family history of long life, delaying CPP often makes financial sense. If you need the money earlier or have health concerns, starting sooner might be right.
There’s no universal answer—your personal situation determines the optimal strategy.
Understanding the Drop-Out Provisions
CPP includes provisions that help people who took time away from paid work. The low-earnings drop-out removes your lowest-earning 17% of years from calculations. This naturally helps account for career interruptions.
The child-rearing provision goes further. If you took time off or reduced work hours to care for children under age 7, those years can be excluded from your CPP calculation entirely. This prevents caregiving from permanently reducing your retirement benefit.
These provisions don’t happen automatically for everyone—make sure Service Canada has accurate information about your employment history.
Coordinating Multiple Benefits
Many seniors receive CPP, OAS, and the Guaranteed Income Supplement simultaneously. GIS provides additional support for low-income seniors, with amounts based on your total income.
Because these programs interact, changes to one can affect others. Taking on part-time work might boost your CPP Post-Retirement Benefits but could reduce your GIS. Understanding these relationships helps you make informed decisions.
Ensuring Your December Payment Arrives Smoothly
Most payments arrive without issues, but a few preventive steps avoid potential problems.
Set up direct deposit if you haven’t already. It’s faster, more secure, and eliminates postal delays. You can arrange this through your My Service Canada Account or by contacting Service Canada directly.
Keep your information current. Changes to your address, banking details, or marital status need to be reported promptly. Outdated information is the most common cause of payment delays.
File your tax return on time. Service Canada uses your tax information to calculate certain benefits and supplements. Missing the filing deadline can interrupt payments, especially for income-tested benefits like GIS.
If your payment doesn’t arrive on schedule, wait two to three business days before taking action—banking systems sometimes process deposits with slight delays. If it’s still missing after that, contact Service Canada to investigate.
Looking Beyond CPP and OAS
While CPP and OAS form important pillars of retirement income, they’re rarely sufficient alone. The average CPP payment of about $808 monthly translates to roughly $9,700 per year—generally not enough for comfortable retirement.
Most financial experts suggest CPP and OAS should cover 40-50% of your retirement income needs, with the remainder coming from personal savings, employer pensions, or continued work.
Tax-advantaged accounts like RRSPs and TFSAs play crucial roles in building comprehensive retirement security. The earlier you start contributing to these, the more time compound growth has to work in your favor.
Planning for the Year Ahead
Your December 22 payment closes out 2025 and sets the stage for the year ahead. With CPP and OAS increases taking effect in January, 2026 starts with slightly higher income to help offset rising costs.
Use this transition period to review your overall retirement income strategy. Are your CPP and OAS amounts what you expected? Do you understand when and why they might change? Are you taking advantage of all available benefits and credits?
Small adjustments now—whether that’s reconsidering when to start benefits, optimizing tax strategies, or building emergency savings—can significantly improve your financial security over the long term.
The predictability of CPP and OAS payments provides a foundation for retirement planning. Unlike investment returns or employment income, these benefits arrive consistently, month after month, adjusted for inflation and backed by the federal government.
Understanding how they work, what you’re entitled to, and how to maximize their value puts you in control of your retirement income. Your December 22 payment is more than just money in the bank—it’s part of a comprehensive system designed to provide financial security throughout your retirement years.
