CPP and Old Age Security both protect pension income against rising prices, but they do it on different timetables. That is why a single “pension increase” headline can be misleading if it is applied to both.
CPP: once a year
CPP benefits already in payment are indexed once a year, each January, using the Consumer Price Index. For 2026 the published rate is 2.0%. Between January adjustments, the CPP amount stays at its indexed level for the year.
OAS: every quarter
Old Age Security works differently. OAS amounts are reviewed quarterly — in January, April, July and October — so they can be adjusted up to four times a year to reflect changes in the cost of living. A quarterly review can leave the amount unchanged if prices have not moved enough.
Why two different cycles
The two programs are set up under separate rules, and their indexation reflects that. The practical effect is that your CPP and your OAS do not necessarily change at the same time or by the same percentage. A 2.0% CPP adjustment in January says nothing about what OAS will do across its four quarterly reviews.
As with CPP, the OAS indexation is designed not to reduce payments: if the cost-of-living measure were to fall, the benefit would hold steady rather than decrease. To see the exact amounts that apply to you, the official Government of Canada pages publish the current figures each period.
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Sources
This article is general information only and is not personal financial, legal or tax advice. Any amounts and percentages are official values or simplified illustrations, not a promise about a personal pension or payment.
Figures refer to the date shown and can change. For a binding explanation of your own situation, use the official Government of Canada channels (such as My Service Canada Account) or a qualified advisor.
Baakari Wilder is an independent information resource and is not operated by, affiliated with or endorsed by Service Canada, Employment and Social Development Canada, or the Government of Canada.
