Pensions and benefits: the three floors, explained by situation

0. The three floors, before anything else

In one line: each floor is earned in a different way. Floor one counts the years you lived here. Floor two counts the dollars you contributed. Floor three counts what you saved. They stack on top of each other. One does not replace another. You get every floor you qualify for.

Never worked a day? You may still get floor one, because OAS runs on how long you lived here, not on work. Worked all your life but immigrated recently? Floor two may be bigger than floor one. So do not ask "how much is the Canadian pension". Ask "how much is each floor in my situation". Section 5 has a table that answers by situation.

1. OAS: earned by living here — work not required

In one line: live in Canada for 10 years after age 18, and be a citizen or legal resident when you are approved, and you can start at 65. Living here 40 years earns the full amount. Less than that is prorated: 20 years means 20/40 of it, which is half.

Three thresholds, all counted in years (verified 2026-08-27)

• 10 years: the minimum line to qualify. You must be living in Canada when you apply. Whether years on temporary status (a work or study permit) count as residence is decided case by case by Service Canada;
• 20 years: what you need if you move away from Canada and still want to keep receiving it;
• 40 years: the line for the full amount. Below 40, it is prorated: each year lived counts as 1/40 of the full amount.

How much you get (July–September 2026, adjusted every quarter for prices)

• Age 65–74: up to $751.97/month. From 75 it goes up automatically by 10%, to $827.17/month;
• High incomes pay part of it back: the calculation uses last year's tax return. Any 2025 net world income above $93,454 causes the OAS paid from July 2026 to June 2027 to be taken back proportionally. This is called the clawback. At around $152,062 (in the 65–74 tier) all of it is taken back. The threshold is adjusted every year;
• Starting later is rewarded: after 65, each month you wait adds 0.6%, up to 70, which adds 36% in total. But if your income is low and you expect GIS, do not wait. Why? Because the official rule is clear: no OAS means no GIS. The years you spend waiting hand back the bigger cheque.

2. GIS: the second cheque for low-income seniors (tax-free)

In one line: if you receive OAS, have a low income and live in Canada, a second cheque follows. It is GIS, the supplement for low-income seniors: up to $1,123.17/month for a single person, and tax-free. But sponsored parents face a red line brought in in 2025.

How much, and how low your income must be (July–Sept 2026; "income" here does not count OAS itself)

• GIS is tax-free. But your eligibility is renewed through your tax return: file on time every year and it continues automatically. Miss a year and it stops;
• Two more cheques exist for people aged 60–64 who have lived here 10 years after age 18. One is the Allowance: your spouse is on GIS, your combined income is under $42,144, and it pays up to $1,428.06/month. The other is the Allowance for the Survivor: your spouse has died, your income is under $30,696, and it pays up to $1,702.34/month;
• You must live in Canada. Being away for more than 6 months stops the payments.

3. CPP: earned at work — and when to start is a real choice

In one line: CPP does not care how many years you have lived here. It counts only how long, and how much, you (and your employers) contributed. You can start any time between 60 and 70, and the later you start, the more you get each month.

How the money goes in

If you are an employee, it comes off every paycheque automatically, and your employer puts in the same amount again. If you are self-employed, you pay both halves yourself, worked out on the Schedule 8 form at tax time. The 2026 ceiling on contributory earnings is $74,600, with a second tier (CPP2) up to $85,000. The more years and the more dollars that go in, the more comes out later. So the small saving from "cash wages, no taxes" is really taken out of your own future pension.

When to start (2026 figures)

The average and the maximum are almost twice apart. Why? Because most people neither contributed for a full career nor contributed at the ceiling. Your own number is in My Service Canada Account. Never treat someone else's number as your own.

Four other cheques worth knowing

• Survivor's pension: when a spouse dies, a share of their CPP is paid to the partner who is still living;
• Death benefit: a one-time $2,500, topped up to $5,000 in some cases, paid to the estate or the family;
• Disability benefit (CPP-D): for someone under 65 who cannot work because of a severe, long-lasting disability, and who has contributed enough;
• Credit splitting on divorce: the CPP both of you paid in during a marriage or a common-law relationship (living together 12 months or more) can be split equally, if you apply. Common-law partners must apply within 4 years (48 months) of separating, so do not put it off. If you stayed home to raise the children, do not forget this right when you separate.

4. The Canada–China agreement: the honest line

In one line: this agreement (in force 2017-01-01) does one thing. It stops workers posted to the other country from paying into two systems. It cannot add your years in China toward the 10-year or 20-year tests for OAS. The claim that "the China agreement tops up your years" does not match the treaty text.

• What it does: a Canadian employer posts you to China (for up to 72 months); you keep paying CPP and do not pay Chinese social insurance. The same works the other way for people posted from China to Canada. That is the whole job;
• What it does not do: the treaty has no totalization clause. Years you lived or worked in China do not count as OAS residence, and they do not build CPP either;
• What about your Chinese pension: claim it in China under Chinese rules; the money can be sent to you in Canada. But note: here it counts as taxable income and must be reported, on the foreign pension line. Tax already withheld in China can be claimed as a foreign tax credit, so you are not taxed in full twice.

5. By situation: arrived when — what is there at 65

In one line: everyone here reaches 65, but the age you arrived, whether you worked, and whether you were sponsored change every floor. Find the row most like you.

The rows are general illustrations, not a calculation for your case; your real numbers come from Service Canada's own estimate.

6. Floor three: your own savings — and two tax levers

In one line: the two government floors were designed to cover the basics only. A comfortable retirement comes from floor three, the money you save yourself. There are also two tax tools along the way, so do not waste them.

• RRSP (registered retirement savings account): money you put in is deductible, money you take out is taxed. It suits people whose tax rate is high while they work. By the end of the year you turn 71, it must be converted into a RRIF (or used to buy an annuity). After that you must take out a minimum share each year, and that counts as taxable income. It is a hard deadline, so do not miss it;
• TFSA (tax-free savings account): money you put in is not deductible, money you take out is completely tax-free, and withdrawals do not count as income. So taking money out of a TFSA in retirement does not hurt your GIS eligibility. Retirees with low incomes should use this one first;
• Pensions from your employer: if your employer matches what you put in, put in enough to get the full match. That part is free money;
• Two tax tools: ① pension income splitting: up to half of eligible pension income can be reported by the spouse with the lower income, which often saves real money; ② the age amount and other credits for seniors, which tax software applies for you automatically, provided you file. The quiz at Tax Helper picks the software for you.

7. Benefits for every other age: one cheat-sheet

In one line: beyond pensions, the federal and provincial governments have a stack of benefits for each stage of life. Almost all of them are switched on by filing your taxes. Here they are in one table, with the detailed links in the final section.

8. What long absences from Canada do to the three cheques (added 2026-08-31)

One line: CPP follows you anywhere. For OAS abroad, everything turns on the 20-year test. GIS follows where you live, and stops after 6 months away.

• Years spent abroad generally do not add to your OAS residence: five years back in China is five years not counted. The 20-year threshold for being "paid abroad" is hard, so count your years before you settle outside Canada;
• Short trips are fine: an absence under 6 months leaves your OAS/GIS untouched;
• Tell Service Canada before you leave for a long time: money paid to you in error is clawed back later, and reporting first is far better than being chased;
• Years in China cannot fill the 20, because the Canada–China agreement has no totalization clause (see section 4);
• Tax note: leaving Canada also changes your tax residency and can trigger departure tax. Plan with a professional before you go, and check the accountant’s or lawyer’s licence first through the directories in the final section. (For how U.S. days are counted, see guide No. 14.)

9. Common myths ↔ facts

10. The sites to bookmark

These are all official sites, or the sites of the bodies that regulate a profession. Each one was opened and checked on 2026-08-27. (The two “outside Canada” rows were added and checked on 2026-08-31; the OAS estimator and the two licence-check rows were added and checked on 2026-09-04.)

Floor one: OAS & GIS

Floor two: CPP

Benefits by stage

Finding a professional (check the licence first)