Deciding when to take CPP and OAS, at 65 or 70, is a decision that will shape your income for life. Your Service Canada statement shows an estimated Canada Pension Plan (CPP) amount as you near 65, and you must pick a start date. The difference is measurable before you choose.
Key takeaways : • CPP and OAS follow separate rules, so treat each adjustment mechanism separately rather than as one government pension delay.
• The break-even calculation compares cumulative payments and determines at what age deferral overtakes an early start.
• If you expect to live beyond the break-even age, deferral produces higher total income; otherwise, starting earlier pays more.
Key takeaways
- CPP et OAS obéissent à des règles distinctes : traitez chaque mécanisme d'ajustement séparément plutôt que comme un seul report gouvernemental.
- Le calcul du seuil de rentabilité compare les paiements cumulés et détermine à quel âge le report dépasse le démarrage anticipé.
- Si vous prévoyez vivre au-delà du seuil de rentabilité, le report produit un revenu total plus élevé ; sinon, un départ plus tôt en verse davantage.
- La récupération de la SV peut réduire ou annuler vos paiements si votre revenu est élevé, rendant parfois le report peu avantageux.
- Travailler après 65 ans peut augmenter votre RPC par des cotisations continues, mais démarrer pendant l'emploi ajoute un revenu imposable.
Choosing when to take CPP and OAS, at 65 or 70, looks simple at first glance. Start at 65 and you receive more individual payments, but each one is smaller. Start at 70 and you receive fewer payments, but each one is permanently higher. The question is which approach puts more total dollars in your pocket over the retirement you actually expect to live.
This article explains the two adjustment mechanisms separately, shows you how to build a break-even comparison using current official figures for when to take CPP and OAS 65 or 70, and identifies the personal factors that can override a pure mathematical answer.
The goal is not to steer you toward one universal choice. It is to give you a repeatable method for comparing your options before you lock in a start date.
The three sections cover how the adjustment mechanisms change between the two start ages, how to run the break-even math, and what circumstances beyond the numbers should shift your decision when to take CPP and OAS 65 or 70.
How CPP and OAS Adjust: When to Take CPP and OAS 65 or 70
CPP and OAS are separate programs with separate rules, which matters for when to take CPP and OAS 65 or 70. The adjustments between the two ages are not identical, and treating them as a single "government pension delay" can lead to a poor decision. This section explains each mechanism independently.
CPP: The Monthly Trade-Off for Starting Early or Late
The Canada Pension Plan (CPP) retirement pension can start as early as age 60 or be deferred beyond age 65. The adjustment is not simply a choice between "65" and "70." You can start in any month between those ages, and the monthly amount changes accordingly.
Each month of deferral past 65 increases your CPP retirement pension by a set percentage. Each month before 65 reduces it. The precise percentage is published by Service Canada and applied monthly, not annually. This matters because starting at 66 years and 4 months produces a different result than starting at 66 years and 5 months.
Once you begin receiving CPP, the adjusted amount is permanent. The higher payment at 70 is not a temporary top-up. It continues for as long as you live, indexed annually according to the rules in force.
Bon à savoir : The CPP enhancement currently under way changes how much you contribute and how much you may receive, but the age-adjustment mechanism for starting early or late still applies to the retirement pension. Always check Service Canada's current figures for the year you plan to start.
OAS: Deferral Increase and the Rules That Limit It
Old Age Security (OAS) operates under a different structure. You can defer OAS past 65, and the monthly amount increases for each month of deferral. The increase is applied to the base OAS amount in force at the time your payments begin.
There is a hard limit. Deferral beyond age 70 produces no additional increase. Unlike CPP, where the monthly adjustment continues until you start, OAS stops rewarding delay at 70. For most people deciding between 65 and 70, the comparison is straightforward: a smaller payment for more years versus a larger payment for fewer years.
OAS eligibility depends on your residency history in Canada. Deferring does not change that requirement. It only changes the monthly amount and the date payments begin.
Attention : If your income in retirement is high enough, the OAS recovery tax can reduce or eliminate your OAS payments. This is sometimes called the OAS clawback. We return to this in Section 3, because it can make the deferral question irrelevant for some households.
What Does Not Change When You Defer
Deferring CPP or OAS changes the timing and the amount. It does not redesign the benefit.
Deferring CPP does not recalculate your contribution record. Your work history, your contributions, and the general rules for calculating your base amount remain the same. Deferral simply applies an age-adjustment factor to that base.
Deferring OAS does not change the residency requirement that determined your initial eligibility. If you qualified for a partial OAS pension at 65, deferring increases that partial amount according to the applicable rules. It does not turn a partial pension into a full one.
Finally, starting later does not protect you from future policy changes. The rules described here are the current rules as of 2026. Past changes to CPP and OAS have occurred, and future changes are always possible. A financial planner should be able to cite the current official figures and explain their source.
Good to know: Two levers, two formulas. CPP uses a monthly adjustment factor that applies both before and after 65, with no maximum age for deferral. OAS uses a monthly increase from 65 to 70 only, applied to the base amount in force, and deferral beyond 70 adds nothing. Keeping these two mechanisms separate is the first step in comparing your options.
Comparing the Numbers: The Break-Even Logic
Understanding how the payments adjust is only the first step. The next question is which option produces more total income over the retirement you expect to have. That requires a break-even comparison.
Cumulative Payments: How to Build the Comparison
The break-even method is a simple, repeatable calculation. It does not require a financial advisor to run, but it does require accurate starting figures.
Begin with your estimated monthly CPP amount at 65. Your Service Canada statement provides this figure, based on your contribution record. Then determine the adjusted monthly amount at 70 using the current percentage for full deferral.
Next, multiply each monthly amount by the number of months you expect to receive payments. For the "start at 65" scenario, multiply by the number of months from 65 to your expected end of life. For the "start at 70" scenario, multiply by the number of months from 70 to that same point.
Finally, find the age at which the cumulative amount from starting at 70 equals or exceeds the cumulative amount from starting at 65. That is your break-even age.
Exemple : Suppose your estimated CPP at 65 is $800 per month. At 70, with the applicable monthly deferral increase, the amount is higher. If you start at 65 and receive payments until age 85, you receive 240 payments.
If you start at 70 and receive payments until 85, you receive 180 payments. The break-even age is the point where the higher monthly amount from deferring catches up to the five years of payments you gave up. Run this calculation with your own Service Canada figures.
The same method applies to OAS, but the adjustment rate differs from CPP. You cannot use the CPP break-even age to judge OAS, because the trade-off is not the same.
Why the Break-Even Age Is the Core Number
The break-even age for when to take CPP and OAS 65 or 70 matters because it converts a monthly percentage into a lifetime dollar comparison. The size of your first cheque is not the right metric. The right metric is cumulative income over the time horizon you actually expect.
If you expect to live past the break-even age for CPP, deferring produces higher lifetime CPP income. If you expect a shorter retirement, starting earlier produces more total payments received. The same logic applies separately to OAS.
The break-even age differs for CPP and OAS because their adjustment rates differ. A single deferral decision covering both programs may be convenient, but it is not analytically precise. You have two levers, and you can pull each one at a different time.
Life expectancy is an input to this calculation, not a vague preference. You do not need to know the exact date you will die. You need a realistic range.
The break-even age tells you what that range must look like for each choice to pay off. If the break-even age is 82 and you have reason to expect you will not reach 82, the deferral is harder to justify on lifetime income grounds alone.
Every figure you use in this method should come from an official source. Service Canada publishes the CPP adjustment factors. The Government of Canada publishes the OAS deferral rates and the current base amounts. A financial planner should be able to show you the source for each number, not present estimates as if they were facts.
What Should Shift Your Decision Beyond the Math
The break-even calculation answers one question: which option pays more total dollars by a given age. But retirement income planning is not only about total dollars. Taxes, other income sources, and your need for guaranteed lifetime income can change the answer.
Income, Taxes, and the OAS Recovery Threshold
The OAS recovery tax is the most direct tax consideration. If your net income in a given year exceeds a threshold set by the Government of Canada, a portion of your OAS is recovered through the tax system. At high enough income levels, your OAS payment can be reduced to zero.
If your income at 65 would trigger a full or substantial OAS recovery, deferring OAS may produce little or no advantage. You would be delaying payments you might never receive in full. The decision requires a year-by-year income projection, not a single rule of thumb.
CPP is fully taxable income. Deferring CPP changes the timing of your taxable income. If you are still working at 65, starting CPP adds taxable income on top of employment income. Deferring to 70 avoids that stacking effect, at least temporarily.
Other income sources interact with this decision. Registered Retirement Savings Plan (RRSP) withdrawals, business income, rental income, and capital gains all affect your marginal tax rate. The start-age decision should be reviewed alongside a written retirement income plan, not made in isolation.
Longevity, Work Plans, and the Need for Guaranteed Income
If you continue working past 65, two things happen. First, CPP contributions may continue, which can increase your eventual pension amount. Second, starting CPP while working may not be necessary if your employment income already covers your expenses. Deferring in this scenario is often attractive, but the decision should be made consciously, not by default.
Guaranteed lifetime income plays a specific role in retirement planning. CPP and OAS provide monthly payments for as long as you live. This makes them different from a Registered Retirement Income Fund (RRIF), which can be depleted, or a Tax-Free Savings Account (TFSA), which depends on market performance and withdrawal decisions.
If your plan requires income that outlives your other assets, deferring CPP and OAS reinforces that guarantee. A higher monthly payment for life is a form of longevity protection. An annuity purchased from an insurance company can serve a similar purpose, but CPP and OAS deferral achieves it through government programs with different rules than private annuities.
A shorter life expectancy or an immediate need for cash flow favours an earlier start. If guaranteed income beyond age 85 is not a priority because your other assets are sufficient, the case for deferral weakens. The answer depends on the whole picture: your health, your spouse's situation, your other income sources, and your estate planning goals.
No single factor decides the question. The math gives you a break-even age. Your circumstances tell you whether that break-even age is realistic or irrelevant for your situation.
The Decision Deserves a Comparison of Options, Not a Slogan
CPP and OAS each have their own rules and different adjustment rates from 65 to 70. The core question is cumulative income over a realistic time horizon, not the size of the first cheque. Taxes, work plans, longevity expectations, and the need for guaranteed income can shift the answer.
There is no universal best age to start. There is a better decision for your household, based on figures you can verify and circumstances you can define.
This is exactly the kind of decision where comparing options matters. A financial planner should be able to show you the current official figures, run the break-even calculation with your numbers, and explain how your tax situation and income plan affect the result. Not all planners approach this question the same way, and not all will give you the same depth of analysis.
Before you lock in your CPP and OAS start dates, compare verified financial planners in Canada on Advisor Index, Canada (English). No firm pays to be listed.
You can also read more on retirement income planning, RRIF withdrawal strategies, and the OAS recovery tax in our related articles.
Questions fréquentes
Can I start CPP at 70 and OAS at 65, or vice versa?
Yes. CPP and OAS are separate programs with separate decisions. You can defer one and start the other, or start both at different ages. There is no requirement to align them.
Does deferring CPP to 70 always produce more lifetime income?
No. Deferring produces higher lifetime CPP income only if you live past the break-even age. The break-even calculation depends on your CPP amount at 65, the adjustment rate, and your expected retirement duration. If your expected lifespan is shorter than the break-even age, starting earlier produces more total payments.
Is OAS ever reduced because of my income?
Yes. The OAS recovery tax can reduce or eliminate your OAS payments if your net income exceeds the annual threshold. If your income at 65 would trigger a substantial recovery, deferring OAS may provide less benefit than expected.
Does working after 65 affect my CPP decision?
Yes. Working after 65 can increase your CPP through continued contributions, and starting CPP while working adds taxable income on top of employment income. A year-by-year income projection is useful to see the full effect.
Where can I find my estimated CPP amount at 65?
Your Service Canada account provides an estimate of your CPP retirement pension based on your contribution record. This figure is the starting point for a break-even comparison.
This article is general information only. It is not personal advice: every financial situation needs its own review.
Official reference: Canada Revenue Agency: RRSPs and related plans.
Puis-je commencer le RPC à 70 ans et la SV à 65 ans, ou l'inverse ?
Oui. Le Régime de pensions du Canada (RPC) et la Sécurité de la vieillesse (SV) sont des programmes distincts avec des décisions séparées. Vous pouvez reporter l'un et commencer l'autre, ou commencer les deux à des âges différents. Il n'y a aucune obligation de les aligner.
Le report du RPC à 70 ans produit-il toujours un revenu à vie plus élevé ?
Non. Le report produit un revenu à vie plus élevé seulement si vous vivez au-delà de l'âge du seuil de rentabilité. Ce calcul dépend du montant de votre RPC à 65 ans, du taux d'ajustement et de la durée prévue de votre retraite. Si votre espérance de vie est inférieure au seuil de rentabilité, un départ plus tôt verse davantage au total.
La SV est-elle parfois réduite en raison de mon revenu ?
Oui. La récupération de la SV peut réduire ou annuler vos paiements si votre revenu net dépasse le seuil annuel. Si votre revenu à 65 ans déclenche une récupération substantielle, le report de la SV peut offrir moins d'avantage que prévu.
Le fait de travailler après 65 ans influence-t-il ma décision concernant le RPC ?
Oui. Travailler après 65 ans peut augmenter votre RPC grâce à des cotisations continues, et commencer le RPC pendant l'emploi ajoute un revenu imposable par-dessus le revenu d'emploi. Une projection de revenu année par année est utile pour voir l'effet global.
Cet article est fourni à titre d'information générale. Il ne constitue pas un conseil personnalisé : chaque situation patrimoniale demande une étude individuelle. Les performances passées ne préjugent pas des performances futures, et tout investissement comporte un risque de perte en capital.
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