How Many Years Do You Have to Work in Canada to Get a Pension?

Canada provides its citizens with public pension programs. The two primary programs are the Canada Pension Plan (CPP) and Old Age Security (OAS). These systems work differently, with distinct eligibility criteria based on working history or residency. This article clarifies the requirements for each program and how various factors contribute to pension eligibility and benefit amounts.

Canada Pension Plan Eligibility

The Canada Pension Plan (CPP) is an earnings-related social insurance program. Eligibility and benefit amounts are tied to contributions made during one’s working life. To qualify for a CPP retirement pension, an individual must be at least 60 years old and have made at least one valid contribution to the plan.

Contributions to the CPP are generally mandatory for individuals aged 18 to 70 who work in Canada (outside of Quebec, which has its own Quebec Pension Plan) and earn more than a minimum amount, set at $3,500 per year. For 2025, the maximum pensionable earnings for CPP contributions are $71,300. Employees and employers each contribute 5.95% of earnings between the basic exemption and the maximum pensionable earnings, while self-employed individuals contribute the full 11.9%.

The period during which an individual can contribute to the CPP is known as their contributory period, which typically begins at age 18. While there isn’t a specific number of “working years” explicitly required, consistent contributions over many years are important for maximizing potential benefits. Recent enhancements to the CPP include a second earnings limit for 2025, ranging from $71,300 to $81,200, with an additional 4% contribution rate for earnings within this band.

Old Age Security Eligibility

In contrast to the CPP, Old Age Security (OAS) is a non-contributory pension funded through general tax revenues. Eligibility is not based on work history or contributions. To qualify, an individual must be at least 65 years old, with age and residency in Canada being the primary factors.

For those living in Canada, a minimum of 10 years of residency in Canada after age 18 is required. If an individual is living outside Canada, they must have resided in Canada for at least 20 years since age 18 to be eligible. Legal status as a Canadian citizen or legal resident at the time of application approval is also a requirement for those residing in Canada.

The OAS program aims to provide a basic income floor for seniors, regardless of their employment background. While income can affect the net amount received through a recovery tax, the fundamental eligibility remains centered on age and the duration of residency. This distinguishes OAS from the CPP’s earnings-based structure.

Calculating Your Pension Amount

The amount of pension an individual receives from the Canada Pension Plan is primarily determined by their contribution history. This includes how much and for how long they contributed, as well as their average earnings over their contributory period. The CPP system considers all pensionable earnings throughout an individual’s career, with provisions to drop certain low-earning years, such as those spent raising children.

For Old Age Security, the benefit amount is calculated based on the number of years an individual has resided in Canada after the age of 18. To receive the full OAS pension, an individual must have resided in Canada for at least 40 years after turning 18. If residency is less than 40 years but meets the minimum 10-year requirement, a partial pension is awarded, calculated as 1/40th of the full amount for each year of residency.

OAS benefits are subject to a recovery tax, often referred to as a “clawback,” if an individual’s net annual income exceeds a certain threshold. For 2025, this threshold begins at $93,454, where 15 cents of every dollar earned above this amount is deducted from the OAS benefit. The maximum monthly OAS payment for April to June 2025 is $727.67 for those aged 65-74 and $800.44 for those 75 and older, though these figures are subject to income-based adjustments.

Applying for Benefits

Individuals can apply for both Canada Pension Plan and Old Age Security benefits through various channels. The most efficient method is online, by creating or logging into a My Service Canada Account. This secure online portal allows users to apply for benefits, view contribution statements, and manage pension information.

Applications can also be submitted by mail or in person at a Service Canada office. It is advisable to apply several months in advance of the desired start date, with a common recommendation being six months prior. While some individuals may be automatically enrolled for OAS, others will need to complete an application.