🔥 Retirement

Deferring OAS to Age 70 in Canada: Is It Worth It?

Published June 25, 2026 · 8 min read · By the WealthWise team · Updated June 25, 2026

⚠️ For information only. General facts and concepts; WealthWise is not a registered investment advisor and gives no personalized advice. Verify with the sources and consult a licensed professional before acting.

In short — You can start Old Age Security between ages 65 and 70. Every month you delay adds 0.6% to your payment permanently — a total of 36% more if you wait until 70. This article explains when deferring makes sense and when taking OAS at 65 is the smarter move.

Old Age Security (OAS) is one of Canada's three main pillars of retirement income, alongside the Canada Pension Plan (CPP) and personal savings. Unlike CPP, you cannot collect OAS before age 65. But you can choose to delay it up to age 70 in exchange for a permanently higher monthly amount. This seemingly simple decision can translate to tens of thousands of dollars over your retirement. Here is what you need to understand to think it through — this article is for educational purposes only and does not constitute financial or tax advice.

Factor	Value
Earliest start age	65
Latest deferral age	70
Increase per month deferred	0.6%
Maximum total increase (60 months)	36% more for life
Example: full OAS at 65	$700/month
Example: same pension deferred to 70	≈ $952/month
Typical break-even age	Around 83 to 86

Deferring OAS from 65 to 70 permanently increases the monthly payment by 36%, but the extra income only pays off if you live past the typical break-even age of 83 to 86.

How OAS Deferral Works

Under current Government of Canada rules, you can begin your OAS pension as early as age 65 or defer it up to a maximum of age 70. For each month you delay past your 65th birthday, your pension increases by 0.6%. If you wait the full five years until age 70 (60 months), you receive 36% more for life compared to starting at 65. For example, if the full OAS monthly amount at 65 is $700, deferring to 70 would bring it to approximately $952 per month — and that higher amount is also indexed to inflation via the Consumer Price Index. It is important to understand that deferral only pays off if you live long enough to recover the payments you gave up during the waiting years. As a general rule of thumb, the break-even point falls somewhere around ages 83 to 86, depending on return assumptions. Source: Government of Canada — Delaying your OAS pension.

When Deferring to 70 Can Make Sense

Delaying OAS is worth considering in several situations:

You are still working at 65. If you have employment income and do not need OAS right away, deferring avoids stacking the pension on top of a salary — where it would likely be taxed at your highest marginal rate.
You are at risk of the OAS clawback. OAS is subject to a recovery tax (clawback) if your net income exceeds a threshold ($75,910 for the 2024 tax year, indexed annually). By deferring OAS during your higher-income years, you avoid that clawback entirely and eventually receive a larger pension once your income falls.
You are in good health with a family history of longevity. If you expect to live to 85 or beyond, deferring can produce significantly more guaranteed lifetime income.
You have other income sources to bridge the gap. RRSP/RRIF withdrawals, investment income, or an annuity can cover expenses at 65 while your OAS keeps growing.

Lean: Defer to 70

You are still working at 65 and do not need OAS right away
You are at risk of the OAS clawback due to high income
You are in good health with a family history of longevity
You have other income sources (RRSP/RRIF, investments, annuity) to bridge the gap

Lean: Take at 65

You need the income now as an essential financial lifeline
You have health concerns or a reduced life expectancy
You would have to draw down investments at a low rate of return to bridge the gap
You want to simplify retirement planning and budgeting

Whether to defer or take OAS at 65 depends on personal factors like income, health, and other income sources — there is no universal answer.

When Taking OAS at 65 Makes More Sense

Deferral is not always the right call. Here are situations where starting at 65 is the better choice:

You need the income now. If you lack other sufficient retirement income sources, OAS at 65 is an essential financial lifeline you should not voluntarily forgo.
You have health concerns. If your health is poor or your life expectancy is reduced, starting at 65 maximizes the total payments you receive over your lifetime.
You would have to draw down investments to bridge the gap. If deferring OAS means withdrawing more from your RRSP or non-registered accounts at a low rate of return, the math may not favour waiting.
You want to simplify retirement planning. For some people, starting OAS at 65 makes budgeting straightforward, even if the lifetime total is slightly lower.

Mechanism	Key detail
Guaranteed Income Supplement (GIS)	Non-taxable benefit for low-income retirees already receiving OAS; you cannot collect it during a deferral period
OAS recovery tax (clawback)	Applies when net income exceeds the annual threshold: $75,910 for 2024, clawing back 15 cents per dollar above that, up to full elimination

GIS and the OAS clawback are two separate mechanisms that interact with the decision to defer: deferring means missing out on GIS, while deferring during high-income years avoids the clawback.

OAS, GIS, and the Clawback: What Interacts

Two other mechanisms interact directly with OAS and are worth understanding:

The Guaranteed Income Supplement (GIS) is a non-taxable benefit for low-income retirees who are already receiving OAS. If you defer your OAS, you cannot collect GIS during that period — which can be a meaningful missed income for people with modest means. If you are likely to qualify for GIS, taking OAS at 65 is generally the better path. Source: Government of Canada — GIS.
The OAS recovery tax (clawback) applies when your net income exceeds the annual threshold. For 2024, it claws back 15 cents for every dollar above $75,910, up to full elimination of the pension. Deferring OAS during high-income years means you avoid the clawback on payments you never received — but this calculation must be weighed against your overall tax picture.

A Personal Calculation, Not a Universal Rule

The decision to start OAS at 65 or defer to 70 depends on deeply personal factors: your health, your other income sources, your marginal tax rate, your GIS eligibility, and your estimated life expectancy. There is no one-size-fits-all answer. What you can do: model both scenarios using a retirement planning tool or work with a Certified Financial Planner to get an analysis tailored to your situation. For more retirement planning topics, visit the WealthWise blog.

Frequently asked questions

Can you take OAS before age 65?

No. Unlike CPP, Old Age Security cannot begin before age 65. That is the minimum age set by law — there is no early-start option.

If I defer OAS, do I lose the payments I would have received?

Yes — you give up payments during the deferral period. Deferral only pays off if you live long enough to recoup that foregone income through higher monthly amounts, which generally happens around ages 83 to 86.

Do my spouse and I have to make the same OAS decision?

No. Each person makes their own independent decision. Depending on your respective incomes and health situations, it may make sense for one partner to defer while the other starts at 65.

How do I defer OAS — is it automatic?

OAS is not paid automatically — you must apply for it. To defer, simply do not apply until you are ready to start receiving payments. You can submit your application through My Service Canada Account or by mail when you want payments to begin.

Sources & references

Educational content; verify figures with official sources before acting.