How much will the government pay me?

Government benefits are always a hot topics.  For those that are collecting Canada Pension (CPP) or Old Age Security, benefits are indexed every year.  For those that are not collecting yet, it’s important to know the amounts for planning purposes.  Here’s the latest figures released by the government.

Canada Pension Plan (CPP)

Type of benefit Average benefit Maximum monthly benefit (2011)
Disability benefit $810.46 $1,153.37
Retirement pension (at age 65) $504.50 $960.00
Survivors benefit (under age 65) $364.85 $529.09
Survivors benefit (age 65 and over) $297.72 $576.00
Children of disabled contributors benefit $214.85 $218.50
Children of deceased contributors benefit $214.85 $218.50
Combined survivors & retirement benefit (pension at age 65) $682.21 $960.00
Combined survivors & disability benefit $940.78 $1,153.37
Death benefit Average payment Maximum one-time payment
$2,252.93 $2,500.00

Old Age Security

Type of Benefit Recipient Average Monthly Benefit Maximum Monthly Benefit Maximum Annual Income
Old Age Security Pension All recipients $490.47 $524.23 See note
Guaranteed Income Supplement Single person $452.04 $661.69 $15,888
Spouse of pensioner $286.53 $436.95 $20,976
Spouse of non-pensioner $431.73 $661.69 $38,112
Spouse of Allowance recipient $376.23 $436.95 $38,112*
Allowance All recipients $390.15 $961.18 $29,376
Allowance for the survivor All recipients $575.01 $1,065.45 $21,408

* For Spouse of Allowance recipient, the Allowance stops being paid at $29,376 while the GIS stops being paid at $38,112.

If you are a pensioner but do not receive the maximum OAS pension you should contact Service Canada to receive accurate information about your benefits.

Note – Pensioners with an individual net income above $67,668 must repay part or all of the maximum Old Age Security pension amount. The repayment amounts are normally deducted from their monthly payments before they are issued. The full OAS pension is eliminated when a pensioner's net income is $109,607 or above.

Written by Jim Yih

Jim Yih is a Fee Only Advisor, Best Selling Author, and Financial Speaker on wealth, retirement and personal finance. Currently, Jim specializes in putting Financial Education programs into the workplace. For more information you can follow him on Twitter @JimYih or visit his other websites JimYih.com and Clearpoint Benefit Solutions.

6 Responses to How much will the government pay me?

  1. Regarding CPP benefits, if one retires early and stops contributing to CPP, does the benefit predicted on one’s CPP statement continue to inflate? Not because of additional contirbutions, but because of the normal indexing associated with CPP. In other words, a) is the benefit predicted in today’s dollars AND b) will it go up due to indexing even if one is no longer contributing? Thanks!

    • Yes Patrick, CPP is indexed to inflation with or without contributions and it should be reflected on the CPP statement of contributions. Thanks for the question.

  2. I lost my job and at 59 do not think I will get another. Do I have some other option other than early cpp.

    • Many Canadian have same problem, they are not ready to retire and did’t plan ahead. You need extra income for sure. You can’t only rely on government. Even they pay OAS, it’s not enough and you have to sacrifice your life style. I provide solutions for you.

  3. Good Day Jim,
    May I ask you to confirm or, explain the following information for me. “…Once you reach age 65, your CPP-disability benefit will automatically change to a CPP. The amount of your retirement CPP pension will be reduced to take into account the years during which you received a disability pension. The reduction also depends on your year of birth..”
    I am very confused with all the information posted on some web sites. Anyway, is it true that the amount of my retirement pension at 65 will or, may be adjusted to take into account the amounts I’ve received when I’m considered disabled (I’m 55 with 20 yrs of employment)?

    • Mae – Your CPP retirement pension will indeed be less than your CPP disability pension, but that’s because of the way that the CPP disability pension is calculated. Your CPP disability pension is 75% of what your age-65 retirement pension would be, plus a “flat-rate benefit” ($471.43 for 2016). The flat-rate benefit ends at age 65, and you receive 100% of your retirement pension.

      If you want to estimate what your retirement pension will be, subtract the flat-rate benefit from what your current CPP disability pension is and divide the remainder by 75%. For example, if your current CPP disability pension is $1,000 per month, your CPP retirement pension will be approx. $704.76 ($1000 – $471.43 = $528.57 / 75% = $704.76)

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