The maximum CPP in 2026 is $1,507.65/month — but only about 7% of Canadians receive that amount. The average new recipient gets $925.35. Here's how the numbers actually work, what couples receive combined, and what it means for retiring abroad.
Every January, Service Canada adjusts CPP and OAS amounts. Here are the verified figures for 2026 — the numbers you actually need to plan your retirement abroad.
💡 How to find your personal CPP estimate: Log in to your My Service Canada Account at canada.ca — you'll see your complete contribution history and a personalised estimate of your CPP benefit at ages 60, 65, and 70. Alternatively, call Service Canada at 1-800-277-9914. Your estimate is the most important number to know before planning.
The CPP maximum ($1,507.65/month) requires making maximum CPP contributions for approximately 39 years. This means earning at or above the Year's Maximum Pensionable Earnings (YMPE) — which was $73,200 in 2025 — for almost your entire working career. The reality is that most Canadians had years of lower income, part-time work, self-employment gaps, time spent raising children, or career breaks that reduce their average.
The CPP calculation takes your best earning years (after dropping the lowest 17% of your working life — typically around 8 years), adjusts them for inflation using the YMPE index, and calculates your pension as a percentage of that adjusted average. The honest result: most Canadians receive somewhere between $700 and $1,200/month, with $925 as the current average for new recipients.
You can start CPP anytime between ages 60 and 70. Every month you take it before 65 reduces it by 0.6%. Every month you delay past 65 increases it by 0.7%. This is one of the most significant financial decisions you'll make — and it's permanent.
For Canadians retiring abroad, this decision has an extra dimension: if you're living in a country with a tax treaty, your CPP withholding rate is 15% regardless of when you start. A larger CPP — from deferring to 70 — means more money withheld at the same rate, but also significantly more net income for the rest of your life. If you have RRSP/RRIF savings to draw on between 65 and 70, deferring CPP while drawing down registered accounts can be a tax-efficient strategy — particularly if your RRIF rate is also 15% in a treaty country. This is exactly the kind of planning a cross-border CPA can model for your specific numbers.
OAS is simpler than CPP — it's not based on contributions or earnings. It's based on how many years you lived in Canada after age 18. The full OAS pension ($743.05/month) requires 40 years of Canadian residence after your 18th birthday. Most Canadians who grew up and worked in Canada most of their lives qualify for the full amount.
If you have fewer than 40 years of Canadian residency, you receive a partial OAS — 1/40th of the full amount for each qualifying year. With 30 years of residency you'd receive 30/40ths = 75% of the maximum, or about $557/month. With only 10 years you'd receive $186/month.
💡 The 20-year rule for collecting OAS abroad: To receive OAS while living outside Canada, you generally need at least 20 years of Canadian residency after age 18. If you have between 10 and 20 years, you can still receive partial OAS abroad — but only if you live in a country that has a social security agreement with Canada. Canada has such agreements with over 60 countries. If you have fewer than 10 years of Canadian residency, you don't qualify for OAS at all.
Like CPP, you can delay OAS past age 65 — up to age 70. Each month of delay adds 0.6% to your pension permanently, for a maximum increase of 36% if you start at 70 instead of 65. Deferring to 70 would increase the maximum OAS from $743.05/month to approximately $1,010.55/month.
OAS deferral is particularly valuable if your income between 65 and 70 is above the OAS clawback threshold ($93,454 net world income for the 2025 tax year). If you'd have the OAS clawed back anyway during those years, you're better off deferring and collecting a larger, unclawed-back amount starting at 70. For most retirees abroad with modest income, the calculation is less clear-cut — model it with your CPA.
⚠️ The OAS clawback applies to world income. Once you're a Canadian non-resident, you still must file an Old Age Security Return of Income (OASRI) annually, reporting your net worldwide income. If that income exceeds $93,454 (2025 tax year), your OAS is reduced by 15 cents for every dollar above the threshold. This applies to your income from all sources globally — not just Canadian-source income. If your RRIF drawdowns plus CPP plus foreign income push you above this threshold, your OAS will be reduced.
The most useful number for retirement planning is your combined household income. Here's what different Canadian couples receive — at various CPP levels — after Canadian non-resident withholding tax.
Net (25%) = no tax treaty with Canada. Net (15%) = living in a treaty country (Portugal, Spain, Malaysia, etc.) and Form NR5 filed. USD equivalent approximately 74% of CAD figures at current exchange rates.
The key insight from the table above: a couple drawing average CPP plus full OAS nets approximately CAD $2,503/month after 25% withholding or CAD $2,836/month after 15% treaty withholding. In USD terms, that's roughly $1,850–$2,100/month depending on the exchange rate.
That income alone is enough for a comfortable life in Malaysia, Colombia, Thailand, the Philippines, and parts of Vietnam and Cambodia. It covers most of the cost in Costa Rica, Ecuador, and Mexico with a small top-up. It covers about half of what you'd need in Portugal, Spain, or Greece — meaning a RRIF drawdown is required for European destinations.
✓ The treaty country advantage in dollars: The 10-percentage-point difference between 15% and 25% withholding on an average couple's combined CPP + OAS of $3,337/month gross works out to CAD $333/month — or just over CAD $4,000/year. Over 20 years that's CAD $80,000 of additional net income just from choosing a treaty country to retire in. It's one of the most valuable factors in destination selection that most guides don't spell out clearly.
See which countries fit your numbers
Ranked by income tier — which destinations work on average Canadian pensions, which need a RRIF top-up, and which require meaningful savings.
Read the Rankings →Sources & Disclaimer: CPP maximum ($1,507.65) and average ($925.35) from Service Canada January 2026. OAS maximum amounts from Service Canada Q2 2026 quarterly adjustment. OAS clawback threshold from Service Canada July 2026 – June 2027 period announcement. This article is for informational purposes only and does not constitute financial advice. Pension amounts change quarterly (OAS) and annually (CPP) — verify current amounts at canada.ca/en/services/benefits/publicpensions. Consult a cross-border CPA for personalised planning.