Is CPP Enough to Retire On in Ontario?

For the vast majority of Ontarians, CPP alone is not enough to retire on. The average CPP payment in Canada is well below what most people need to cover basic living expenses, let alone a comfortable retirement. CPP is designed to be one piece of a retirement income puzzle — not the whole picture.

How Much CPP Do Most Canadians Actually Receive?

The maximum CPP retirement benefit at age 65 in 2025 is approximately $1,433/month ($17,196/year). However, the average Canadian actually receives roughly $750–$900/month — significantly less than the maximum.

Your CPP amount is based on:

• How many years you contributed
• How much you earned (and contributed) during those years
• The age at which you start taking CPP

Most people do not receive the maximum because they had lower-earning years, gaps in contributions, or years spent outside the workforce. This is especially common among women who took time off for caregiving, self-employed individuals who undercontributed, or people who started working in Canada later in life.

When you check your My Service Canada account, you can see your estimated CPP benefit based on your actual contribution history. That number is the one to plan around — not the maximum.

What About OAS — Does It Help?

Old Age Security (OAS) provides additional government income starting at age 65. In 2025, the maximum OAS payment is approximately $713/month for those 65–74, and slightly more for those 75+.

Together, CPP and OAS can provide somewhere between $1,400 and $2,100/month for a typical retiree — roughly $16,800 to $25,200/year.

For context, Statistics Canada estimates that the average single Canadian aged 65+ spends roughly $35,000–$45,000/year. That means even the highest combined CPP and OAS falls well short of average spending — and does not account for higher-cost Ontario housing, healthcare top-ups, or any lifestyle beyond the basics.

For couples, two sets of CPP and OAS benefits improve things considerably, but the math still tends to leave a meaningful gap.

What Happens If CPP Is All You Have?

If CPP and OAS are your only retirement income sources, you may qualify for the Guaranteed Income Supplement (GIS) — a tax-free federal benefit for low-income seniors. GIS can provide meaningful additional income, but it is means-tested, meaning it phases out as your other income rises.

Relying on GIS is not a retirement strategy — it is a safety net. Most people who approach retirement with only government benefits face difficult trade-offs: reduced housing, limited travel, constrained healthcare options.

The gap between what CPP and OAS provide and what a comfortable retirement actually costs is the core reason why personal savings — RRSP, TFSA, pensions, and non-registered investments — matter so much.

Building a Retirement Plan That Uses CPP Strategically

CPP is genuinely valuable — it is inflation-indexed, guaranteed for life, and backed by the Canadian government. But it works best as a foundation, not a ceiling.

A well-structured retirement plan uses CPP as one layer of a multi-source income strategy:

1. CPP and OAS — your inflation-protected base (roughly $1,500–$2,100/month combined at 65)
2. Employer pension — if applicable (defined benefit or defined contribution)
3. RRSP/RRIF drawdown — tax-deferred savings converted to income in retirement
4. TFSA withdrawals — tax-free income that does not affect OAS clawback thresholds
5. Non-registered investments — additional income with capital gains treatment

The sequencing and timing of each of these sources has a meaningful impact on your lifetime tax bill and how long your money lasts.

At Pineault Wealth Management in London, Ontario, Marc Pineault works with clients across Southwestern Ontario to build retirement income strategies that layer CPP and OAS with personal savings in a tax-efficient way. If you want a clear picture of whether your plan covers the gap, book a consultation today.

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This article is for educational purposes only and does not constitute personalized financial advice. Please consult a qualified financial planner before making any financial decisions.