May 28, 2026
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
Let’s start with a scenario that far too many retired Canadians have experienced. A newly retired Canadian opens their first government deposit to see their retirement benefits. The Canadian Pension Plan (CPP) and Old Age Security (OAS) payments are available, but they total only about $1,530 per month. After working for decades, that amount is often shocking to retirees.
According to Statistics Canada, the median after-tax income for individual seniors in Canada is about $31,400 per year, or roughly $2,617 per month. That amount pales in comparison to most working wages in Canada.
Advertisement
So, how much do Canadian retirees actually live on each month? Where does the money come from, and is it enough? This article will dive into answering those questions and take a closer look at the typical Canadian’s retirement income.
What is the average monthly retirement income in Canada?
Here’s the hard truth that many Canadians learn in retirement: The average after-tax retirement income for senior families is about $74,200 each year, or about $6,183 per month.
The median retirement income data for Canadians paints a more realistic picture for most households. For individual seniors, that figure drops to about $31,400 annually, or $2,617 per month. The median senior couple will earn about $64,300 per year.
Why are these figures different? High-income retirees skew the results, pulling the average up. The median data reflects the exact midpoint of the entire group of Canadian retirees.
Retirement income snapshot (after tax):
- Individual senior (average): about $2,800/month
- Individual senior (median): about $2,617/month
- Senior couple (average): about $6,183/month
- Senior couple (median): about $5,358/month
These totals include all of the retirement benefits that Canadians rely on, including CPP, OAS, the Guaranteed Income Supplement (GIS), pensions and personal savings, as applicable.
Must Read
- Warren Buffett used these 4 solid, repeatable money rules to turn $9,800 into a $150B fortune. Here’s how to apply them to your own life
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more, and build wealth — here’s how it works
Join 19,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Where does retirement income actually come from?
For most Canadians, retirement income comes from a combination of the three pillars: government retirement benefits, workplace pensions and personal savings and investments.
The first pillar includes things like CPP, OAS and GIS Canada, which some seniors may qualify for. In 2025, the average CPP payment was about $772 per month, while the maximum benefit was $1,364.60. For OAS, the monthly payment was $713.34, and for seniors over 75, it was increased to $784 per month.
Advertisement
Low-income seniors may also qualify for GIS. This can add up to $1,065.47 per month for a single senior. Unfortunately for many retired Canadians, this GIS represents a necessary foundation of their retirement income.
The second pillar is the employer-provided pension. A defined benefit pension can provide a guaranteed monthly income in retirement. A defined contribution plan will depend on investment performance and withdrawals. According to Statistics Canada, more than 6.6 million Canadians are a part of registered pension plans, even though fewer than one-third of workers have employer-sponsored pensions.
The third and final pillar is personal savings. This includes investments in Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Tax-Free Savings Accounts (TFSAs) and non-registered investments. For Canadians without pensions, these savings often determine how comfortable retirement feels.
To get started, open a no-fee RRSP high-interest savings account with EQ Bank. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.
Is CPP and OAS enough to retire on?
For most Canadians, relying on CPP and OAS provides a basic retirement income, but it’s generally not enough to have a comfortable retirement.
A retiree who receives the maximum CPP and OAS would collect about $2,077.94 per month before taxes. Unfortunately, most people receive far less, with the average amount received being closer to about $1,500 monthly.
Advertisement
In comparison, the low-income measure for a single person in Canada works out to approximately $2,083 per month. Translation: government benefits can help, but it is nearly impossible to rely on them as your only retirement income.
Home ownership is certainly a benefit in retirement. About 75% of Canadian seniors own their homes. This lowers monthly expenses for seniors who have to rent, especially in expensive cities like Toronto or Vancouver.
On the other end of the scale, high-income retirees need to watch out for the OAS clawback. If your net income exceeds $90,997 annually, your OAS payments will begin to shrink and could even disappear altogether at higher income levels.
Read more: Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
How does retirement income vary by situation?
Like most things, retirement income can vary dramatically depending on a long list of factors. Things like household structure, geography, and work history can all play a part in determining your income.
Timing also matters. Taking CPP at age 60 permanently reduces benefits by up to 36%, while delaying until age 70 boosts payments by as much as 42% compared with starting at 65.
Advertisement
For example, someone eligible for $900 monthly at age 65 would receive about $576 monthly at age 60 or roughly $1,278 monthly at age 70. This is where the other pillars of retirement income matter.
Women, newcomers and gig workers often receive lower CPP payments because of lower lifetime earnings or contribution gaps. Cost of living and location also matter: retirees in smaller communities may need far less income than renters in major urban centres.
What should you do if your projected income falls short?
The first thing is not to panic. Get a good understanding of your own finances and retirement situation.
The Canadian government provides some useful planning tools you can take advantage of. The Canadian Retirement Income Calculator makes it easy to estimate your future retirement income, taking into account your CPP, OAS, pension, and savings.
For some Canadians, delaying their benefits can meaningfully increase their guaranteed lifetime income. If you are healthy and can reasonably expect to live a bit longer than average, then delaying the benefits can really increase your payouts.
For Canadians who do not have an employer-provided pension, they should focus on utilizing the TFSA and RRSP to supplement retirement income.
Finally, lower-income seniors should check their GIS eligibility. Many eligible Canadians never apply for the benefits they qualify to receive, and supplementing your OAS and CPP with a GIS payment can go a long way in providing a little extra breathing room in retirement.
FAQs about retirement income in Canada
What is the average monthly retirement income in Canada?
The average monthly retirement income for Canadians sits at around $2,800 per person. The mean monthly retirement income is a more accurate view, and according to Statistics Canada, it comes in at about $2,617 per person.
What is the maximum CPP payment in 2025?
In 2025, the maximum CPP retirement benefit is $1,364.60 per month for retirees who started collecting at age 65. The CPP benefit depends on lifetime contributions, so it could change depending on work history.
How much is OAS per month in Canada?
In 2025, the maximum OAS monthly payment was $713.34 for seniors aged 65 to 74. For those who were 75 years and older, the payment bumped up to $784 per month.
Can you live on CPP and OAS alone in Canada?
Some Canadians do, particularly homeowners or those who live in less-expensive cities. Still, it is difficult to live on the CPP and OAS alone, as it may not fully cover the rising cost of living in Canada.
What is the average CPP payment in Canada?
In 2025, the average CPP payment for retirees was approximately $772 monthly. Just as with OAS, the CPP payment can vary depending on earnings history and at what age collection started.
What is GIS and who qualifies?
The GIS is the Guaranteed Income Supplement, which helps low-income retirees. It is a non-taxable monthly benefit, and eligibility is dependent on annual income and marital status.
What is considered a good retirement income in Canada?
A good retirement income is certainly subjective in 2026. This depends on factors like housing costs, debt, and lifestyle. Many financial planners in Canada suggest retirees aim to replace 60% to 70% of their pre-retirement income.
How much does the average Canadian couple receive in retirement?
Senior couples in Canada receive an average retirement income of about $74,200 annually. This equates to about $6,183 monthly. The median annual income is lower, at about $64,300 annually.
You May Also Like
- Focus on these 3 ‘magic numbers’ to become a millionaire — and only on these numbers. How do you stack up?
- Here are the 3 essential moves to make once you’ve saved $50,000
- Suze Orman recommends these 6 simple ways to avoid the stress of living paycheque to paycheque
- Your daily coffee habit isn't the problem. Prioritize these 4 critical investments instead and watch your net worth skyrocket
Noel Moffatt is a Canadian fintech expert with a passion for simplifying personal finance. Based in St. John’s, NL, he draws on his background in finance, SEO, and writing to deliver clear explanations and actionable advice. Noel is dedicated to equipping readers with the knowledge and tools they need to make informed financial decisions, striving to make personal finance more accessible and understandable through his in-depth articles and reviews.
Credit Cards • May 15
