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.
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.
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.