How Much Can You Earn Before Losing Your Guaranteed Income Supplement?

The CRA offers the Guaranteed Income Supplement to low-income Canadians above 65. At what annual income will you lose your GIS in 2025?

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

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Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published July 11, 2025 8:30 pm EDT

Retiring can be scary, as you are never sure if your portfolio will be enough. And if you are relying solely on the Canada Pension Plan (CPP), there is a high chance of facing a significant cash shortage. For low-income retirees, the Canada Revenue Agency (CRA) offers a non-taxable monthly income, the Guaranteed Income Supplement (GIS). You can earn GIS, CPP, and Old Age Security (OAS) if you plan well.

Senior uses a laptop computer — Source: Getty Images

The total retirement income from government schemes

You can get a maximum monthly GIS of up to $1,097.75 in the July–September period, if your annual income is below $22,272. So if you are earning an average CPP of $844.53 per month and maximum OAS of $734.95 per month, your annual income comes to $18,953.76, qualifying you for maximum GIS.

If you qualify for maximum GIS, you can get $13,173 in a year, and your total annual income after age 65 will be $32,126.76.

Benefit	Monthly income	Annual Income
Average CPP	$844.53	$10,134.36
Maximum OAS	$734.95	$8,819.40
Annual Taxable Income		$18,953.76
GIS	$1,097.75	$13,173.00
Total Income		$32,126.76

However, this is just an estimate based on the July–September payout. The CRA reviews the payouts quarterly and adjusts them for inflation, which means you can get a higher amount.

How much more can you earn before losing your Guaranteed Income Supplement

In the above table, the total taxable income is still below the GIS income threshold, giving you room to earn $3,3184.24 in additional income. This additional income can come from investments or working income. The $3,300 income can come from investments in shares.

Suppose you are working post-65 and your annual income is above $32,126, you could delay collecting CPP and instead invest some money in a TFSA to build that $3,300 income gap, which will not take away your GIS.

A dividend stock to support your Guaranteed Income Supplement

Enbridge (TSX: ENB) is a good stock that can earn you assured dividends. Its rich history of growing dividends for 30 consecutive years shows its resilience to and ability to handle economic crises. The low-risk business model of collecting toll money for transmitting oil and gas and using it to build new pipelines, repair old ones, service debt, and pay dividends makes it ideal for risk-averse investors.

It is a good time to buy Enbridge as the share price has dipped below $60. The stock generally trades in the range of $45–65 and sees a seasonal dip during the summer. You can lock in a 6% yield and expect the dividend per share to grow by 3–5%, helping your income grow.

A growth ETF for your TFSA

If dividends is not something you seek, there are some good growth stocks you could consider buying. The iShares S&P/TSX Capped Information Technology Index ETF (TSX: XIT) can give you exposure to the technological trends shaping the future. Shopify and Constellation Software are driving the e-commerce and software trends, while Celestica is driving the artificial intelligence (AI) hardware trend. The ETF has surged 37% in a year and can continue to grow double-digit with new generations of AI and self-driving vehicles. XIT has a 0.6% management expense ratio, which is charged annually on the portfolio value.

You could consider investing in this ETF through your TFSA to withdraw the amount tax-free in case of an emergency. However, you have to stay invested for at least three years to generate a sizeable return as the ETF is subject to sector-specific risk. The ETF’s unit price almost halved in the 2022 tech meltdown. Consider investing small amounts every month in this ETF for three years to build a decent portfolio.