What happens to CPP and OAS payments when a spouse dies and how do we plan for this?

One of the harder realities couples face is that government retirement income does not simply continue unchanged when one partner dies, and this piece tackles how to plan for that ahead of time. It looks at what happens to Canada Pension Plan and Old Age Security payments after the death of a spouse, and why the surviving partner often ends up with less household income than the two of them shared. Allan's starting point is lifestyle planning, thinking first about the life you want now and the life the survivor will need later, then building the financial plan around that. The aim is to avoid an unwelcome surprise during an already difficult time. It is especially worth reading for retired or near-retired couples who rely meaningfully on these benefits and want to understand how the loss of one stream affects the one who remains.