Pension Boost Canada: Expected CPP and OAS Pension Increase in April 2024

The government of Canada offers different programs to help senior citizens of the state. Two of the main programs are the Canada Pension Plan and Old Age Security. The officials provide the pension to eligible beneficiaries every month. The main reason behind providing this program is to help the beneficiaries with inflation and increasing cost of living. The following article is going to focus on Pension Boost Canada. It has been reported that there will be a rise of 4.4% in pensions.

Pension Boost Canada makes sure that the amount of pensions does not depreciate over time and protects the citizens from increasing inflation. People under different categories such as survivors, divested members and others are subject to the COLA i.e., Cost of Living Adjustment. If you are interested in knowing detailed information about Pension Boost Canada such as expected increases and more then do read the following till the end.

Pension Boost Canada 2024

Statistics Canada reports the CPI i.e., Consumer Price Index every first month of the year which checks the costs of living in the country. The same data is used to calculate the pension amount. The authority provides the pension during the last week of each month.

The Pension Boost Canada is going to provide some relief to the citizens of Canada. Please note that the officials provide the pension amount directly into the account of the beneficiaries. It is the responsibility of the citizens to provide correct data. Below is the section holding information on the Pension Boost Canada expected to increase the rate of CPP and OAS.

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Expected CPP Pension Increase in March 2024

From 2023-24, the government will increase the benefit amount by 4.4%. Considering the increase in inflation for over a year, the rate of increase is higher than last few years. In 2023, the monthly payment amount was $1,306.57. But the new payment amount is $1,364.60. Canadians who are employed will also see an increment in income cap from 66,000 dollars to 68,500 dollars. The Canadian government is also thinking of introducing a second additional CPP contribution or CPP2.

Expected OAS Pension Increase in March 2024

The government of Canada has also increased the amount of Old Age Pension by 0.80% for the quarter which ends in January-March 2024. Please note that the OAS payments are adjusted by the officials quarterly for an increase in the COL in January, April, July and October. However, the same process is not used for the CPP. The increment in the OAS is calculated through the CPI information for two time frames of three months each for the 2024 year.

So, let’s calculate the payment amount. The CPI has been increased to 0.80%. This means that the monthly payment amount of OAS between January through March will be $714.34 for people whose age lies between 65 to 74 years old and $784.67 for people who are 75 years old or older respectively. As of July 2022, the benefits of OAS are increased automatically by 10% for senior citizens ages 75 years old or older.

It must be noted that the mentioned increment will be continued till 2024. Senior citizens whose age is over 65 years old get a monthly payment of a maximum of $784.67 which is 9% less than the payment received by those between 65 and 74 years old who get the payment of $713.34.

Recent Increase in Old Age Security Pension Payment

Year	Key Development in OAS
2023	10% increase for seniors aged 75 and over
2024	No Change
Long-Term	Rising costs, with OAS, expected to increase 50% by 2027

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