As more Canadians delay full retirement or return to the workforce for financial or personal reasons, the question arises: Can you work while receiving a CPP? The short answer is yes, but there are important considerations depending on the type of pension you receive, including Old Age Security (OAS), Canada Pension Plan (CPP), employer-sponsored pensions, and private retirement savings.
Here’s a detailed breakdown of how working while receiving CPP affects your income, taxes, and benefits in Canada in 2025, using the latest guidance from Canada.ca.
Table of Contents
Working While Receiving the Canada Pension Plan (CPP)
You can work and receive CPP retirement benefits at the same time. Many Canadians start collecting CPP as early as age 60 while continuing to work.
Key Details:
- CPP does not stop when you start working again.
- If you are under age 70 and still working, you must contribute to CPP unless you opt out after age 65.
- These additional contributions go into the Post-Retirement Benefit (PRB), which increases your monthly CPP payment the following year.
Post-Retirement Benefit (PRB):
- Each year you contribute while working (after starting CPP), you earn a small PRB, even if you’re already retired.
- The PRB is added to your CPP pension for life.
New $1,433 CPP Payment Coming in July 2025 – Are You Getting the Maximum?
Working While Receiving Old Age Security (OAS)
You can work and receive OAS at the same time, but your income may affect how much you receive, especially due to the OAS Recovery Tax (Clawback).
2025 OAS Clawback Threshold:
- If your net income exceeds $93,454 in 2025, you’ll begin repaying part of your OAS.
- You’ll lose 15 cents for every dollar above that threshold.
- At around $151,668, your OAS could be fully clawed back.
Strategies to Reduce Impact:
- Consider splitting pension income with a spouse to lower net income.
- Maximize RRSP deductions before age 71.
- Delay OAS (up to age 70) to receive higher monthly payments and defer potential clawback.
Old Age Security Increase July 2025: Here’s What Seniors Need to Know
Employer Pensions and Private Retirement Income
If you receive a workplace pension (defined benefit or defined contribution), there are typically no restrictions on working.
However:
- Your earnings may be taxable in a higher bracket when combined with new employment income.
- It may impact means-tested benefits like the Guaranteed Income Supplement (GIS), especially for low-income seniors.
Guaranteed Income Supplement (GIS) and Working Seniors
If you’re 65+, receive OAS, and have low income, you might also qualify for GIS, but employment income reduces GIS payments.
In 2025:
- You can earn up to $5,000/year without affecting GIS.
- For the next $5,000, your GIS is reduced by 50%.
- After $10,000, it’s reduced dollar-for-dollar.
So, working part-time may be beneficial, but going over these thresholds reduces your GIS substantially.
Confirmed GIS Benefit Payment Increase in July 2025: Key Details Low-Income Senior Should Know
Working While Receiving QPP (Québec)
- The Québec Pension Plan (QPP) mirrors CPP rules.
- If under 70, continued work requires contributions, boosting future monthly QPP payments through a supplement.
- Contributions end automatically at age 70
Taxes and Reporting
Any employment income, CPP, OAS, GIS, RRIF withdrawals, and private pension income must be reported on your income tax return.
To minimize taxes while working:
- Use tax credits for age and pension income.
- Consider income splitting with a spouse or common-law partner.
- Plan withdrawals strategically from RRSPs and RRIFs to avoid OAS clawback or GIS loss.
Still Working Past 65? Here’s What You Need to Know About CPP, OAS and Tax Planning
Can You Work While Receiving a Pension?
Yes, but here’s what to keep in mind:
| Pension Type | Can You Work? | Income Effects |
|---|---|---|
| CPP | Yes | Must contribute until age 70 (opt-out at 65); PRB adds to pension |
| OAS | Yes | Income above $90,997 may trigger clawback |
| GIS | Yes | Payments reduced after $5,000 in earnings |
| Private/Work Pensions | Yes | May increase tax bracket; no direct penalties |
Final Thoughts
Working while receiving a pension is increasingly common and often financially beneficial. However, it’s important to plan carefully to avoid unexpected tax burdens or reduced benefits.
If you’re unsure how your employment income will impact your pension or government benefits, consult a financial advisor or speak with Service Canada to get the most accurate guidance for your situation.