Living on CPP, OAS and GIS Only in Canada

Who This Guide Is For

Some Canadians retire with little or no personal savings: no RRSP, no workplace pension, no significant investments. For them, CPP, OAS and the Guaranteed Income Supplement are the whole retirement income. The GIS is meant for this situation: a monthly, non-taxable benefit for OAS pensioners with a low income who live in Canada.

This guide covers what that income looks like, what it can and cannot cover, and ways to make it go further. It is part of the Canada Pension Plan hub; how CPP and OAS compare is in CPP vs OAS.

What You Actually Receive: The Numbers

Single senior with average CPP

Most Canadians do not receive maximum CPP. The average CPP retirement pension for new recipients at 65 is $858.34/month (July 2026, Employment and Social Development Canada), well below the maximum of $1,507.65 for a pension starting in January 2026.

CPP counts as income for the GIS, so average CPP of $10,300 a year reduces the GIS. The GIS below is read from ESDC’s GIS table for a single pensioner at that income. In the tables on this page, OAS and GIS amounts are for October to December 2026, and the CPP average is for new pensions in July 2026.

Benefit	Monthly Amount
CPP (average)	$858.34
OAS (age 65–74)	$762.50
GIS (reduced by CPP)	$537.90*
Total monthly	$2,158.74
Total annual	$25,905

GIS from ESDC’s income-tested table for a single person at $10,300 of annual income (OAS itself is not counted). A flat “50 cents per dollar” estimate overstates it, because the top-up part of the GIS is reduced faster than the rest.

Single senior with no CPP

Some Canadians, particularly those who worked informally or had long gaps, receive little or no CPP.

Benefit	Monthly Amount
CPP	$0
OAS	$762.50
GIS (maximum)	$1,138.90
Total monthly	$1,901.40
Total annual	$22,816.80

Couple, both receiving average CPP

Benefit	Each	Combined
CPP	$858.34	$1,716.68
OAS	$762.50	$1,525.00
GIS (couple table, reduced)	$206.57	$413.14
Total combined		$3,654.82/month

For couples, GIS is assessed on combined income: $20,600 a year of CPP here, looked up in ESDC’s table for a pensioner whose spouse also receives OAS.

Adding Provincial Supplements

Several provinces add an income-tested top-up for low-income seniors. The maximums:

Province	Program	Maximum
Ontario	GAINS	$92 a month (single)
British Columbia	Senior’s Supplement	$99.30 a month (single)
Alberta	Alberta Seniors Benefit	$3,946 a year (single), about $329 a month
Manitoba	55 PLUS	$161.80 a quarter (single)

The eligibility rules and other provinces are in provincial senior benefits that top up the GIS. Like the GIS, these top-ups are income-tested.

What the Income Can Cover

For seniors living on government benefits, housing is the central budget question, and whether you own or rent makes the biggest difference.

If you own your home (mortgage-free)

An example monthly budget for a single homeowner; your costs will differ:

Expense	Monthly Estimate
Property tax and home insurance	$300–$500
Utilities (heat, hydro, water)	$150–$250
Groceries	$350–$450
Transportation (transit/car)	$100–$200
Prescriptions and health costs	$50–$150
Phone and internet	$80–$120
Personal and miscellaneous	$100–$200
Total	$1,130–$1,870

A budget like this fits within the income of a single senior with average CPP ($2,159 a month above), especially with the provincial drug plans, dental coverage and transit discounts available to low-income seniors.

If you rent

Average rents for one-bedroom units in purpose-built rental apartments, from CMHC’s Rental Market Survey, compared with the income of a single senior with average CPP, OAS and the GIS ($2,159 a month):

City	Average 1-bedroom rent (2025)	Share of that income
Toronto	$1,761	82%
Vancouver	$1,809	84%
Calgary	$1,585	73%
Winnipeg	$1,236	57%
Halifax	$1,550	72%

Source: CMHC Rental Market Survey via Statistics Canada (rent data by city). The survey covers apartment buildings of six units or more, and the averages include long-standing tenancies, so they sit below asking rents for vacant units. Where rent takes most of the income, subsidized seniors’ housing, co-op housing or a rent supplement is usually part of the picture.

Strategies to Stretch Government Benefits

1. TFSA savings don’t reduce the GIS

Income earned in a TFSA and TFSA withdrawals don't reduce federal benefits such as OAS, GIS and EI, or credits such as the Canada child benefit, the Canada workers benefit and the Canada Groceries and Essentials Benefit (formerly the GST/HST credit). So savings held in a TFSA can add to income without lowering the GIS. RRSP and RRIF withdrawals do count; RRSP withdrawal before 65 to protect GIS covers the timing.

2. Check the provincial programs

Some provincial top-ups are paid automatically once you get the GIS, and others need an application; the provincial top-ups page says which.

3. Use the earnings exemption

Part-time work in retirement gets a GIS exemption. The first $5,000 of employment and self-employment earnings is exempt, and so is half of those earnings between $5,000 and $15,000. Of a $10,000 part-time income, $2,500 counts as income, which lowers the GIS by about $1,250 a year at the general 50% rate (more in the band where the GIS top-up is also being reduced).

4. File taxes on time, every year

The GIS is renewed from your tax return, and Service Canada says to file by April 30 every year to avoid any disruption of payments, even with little or no taxable income. The Canada Groceries and Essentials Benefit (formerly the GST/HST credit) and most provincial top-ups are also based on your return. See GIS renewal and filing requirements.

5. Explore housing options

Non-profit and co-op housing: subsidized, below-market rent for eligible low-income seniors
BC SAFER: a rent supplement from BC Housing for B.C. residents aged 60 or older renting in the private market who pay more than 30% of their gross income in rent, among other conditions (BC Housing also sets an income limit and a 12-month B.C. residence rule)
Property tax deferral: some provinces and municipalities let seniors defer property tax until the home is sold

6. Take advantage of free services

Low-income seniors can get several free or reduced-cost services:

Free tax filing via the Community Volunteer Income Tax Program (CVITP)
Provincial drug plans, which usually cost less for low-income seniors
Dental coverage through the federal Canadian Dental Care Plan, for people without dental insurance whose adjusted family net income is under $90,000, among other conditions
Transit discounts, which many cities offer to seniors

Is This Enough?

For a senior who:

Owns a paid-off home in a modest-cost city
Has minimal health expenses
Does not travel much
Receives provincial top-ups

…living on government benefits alone is tight, but the budget example above fits within it.