The FG Forum

Deferring Your Old Age Security (OAS)

NOVEMBER 8, 2013

As of July 2013 you may voluntary defer your OAS pension for up to 60 months after the first date of eligibility (depending on birth date) for a higher monthly amount. An individual is eligible for OAS commencing the month following the month of their 65th birthday. The total payments will increase by 0.6% for every month you delay receiving your OAS up to a maximum of 36% at age 70.

This is advantageous for taxpayers who expect to live longer and:

  • Who are able to continue working and can afford to wait to receive OAS.
  • Whose income is too high and are having their OAS clawed back, giving them a chance to delay receiving OAS until they have a lower income.

Whose income is too high and are having their OAS clawed back, giving them a chance to delay receiving OAS until they have a lower income.

  • Deferral of one year (age 66) – The increased payments would be beneficial if you live to be 80 years and older
  • Deferral of two years (age 67) – The increased payments would be beneficial if you live to be 81 years and older
  • Deferral of three years (age 68) – The increased payments would be beneficial if you live to be 82 years and older
  • Deferral of four years (age 69) – The increased payments would be beneficial if you live to be 83 years and older
  • Deferral of five years (age 70) – The increased payments would be beneficial if you live to be 84 years and older

You can apply for OAS up to 11 months before you want your payments to start. If you turned 65 before July 2013, you may choose to delay receiving your Old Age Security (OAS) pension up to age 70 in exchange for a higher monthly amount. However, the increased monthly amount will be calculated only from July 2013 up to the month before your chosen effective date or the month of your 70th birthday, whichever is earlier.

Effective March 1, 2013, you may request to cancel your Old Age Security (OAS) pension if you have been receiving your OAS pension for less than six months. You will also be required to repay, within six months from the day your cancellation request is granted, the full amount of your OAS pension and any related benefits you or your spouse or common-law partner received. You will be able to re-apply at a later date and receive an increased OAS pension.

When determining whether or not to defer OAS payments, it is recommended that you speak to your accountant or financial advisor as there are a number of factors to consider.

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