OAS Deferral Calculator

You can elect to start OAS at age 65, or defer until any month between age 65 and age 70. Deferring results in a 0.6% increase in payment for every month after the age of 65 you start collecting. That’s a total potential increase of 36% for deferring until age 70.

This calculator helps to illustrate some of the financial elements to answering this question, however there are other factors that need to be considered. These include health, cash flow needs, taxation, and OAS clawback thresholds to name a few.

OAS is just one source of retirement income, request our complete guide here.
Canadian Retirement Income Guide

Instructions:

Enter your year and month of birth along with various dates for starting your OAS (between age 65 & 70) to see the different payment amounts you may receive.

* The default OAS Estimate at age 65 is this year’s maximum monthly payment. Your eligibility may be different. See note 2 below.

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Notes:

Estimated enhancement in OAS payments based on how many months after the age of 65 you commence benefits.
Based on estimated OAS amount at age 65 plus applicable enhancement. Actual amount dependent on other factors including the number of years you’ve been a resident in Canada after the age of 18. A minimum of 10 years is required, and 40 years qualifies for the maximum payment. Partial OAS generally calculated as the number of years resident in Canada after the age of 18 divided by 40, multiplied by the maximum annual OAS amount.
If you choose a start date after age 65, you receive a higher amount of OAS but start these payments up to 60 months later. By waiting to collect the higher amount you are forgoing income that could’ve started at age 65. The breakeven age is the age at which you are no longer worse off (not including tax impact) for having foregone the income at age 65.

Note about the Breakeven Age:

If you live past the breakeven age, one could argue that the math says to take OAS later. If you don’t live to the breakeven age, then you should take OAS earlier. Unfortunately, no one knows when they will pass away.

Please note this analysis does not include tax impacts, OAS clawbacks, etc. Working with a financial planning professional can help determine the best solution for your individual circumstance.