Quick answer: CPP and OAS are independent decisions with separate deferral mechanics. CPP can start age 60-70 (−36%/+42% adjustment); OAS can start only 65-70 (+36% bonus at 70, no early start). Optimize each separately.
What this means: Most healthy retirees with savings benefit from delaying both to 70. Most who’ve stopped working without significant savings start CPP at 60. OAS clawback (15% recovery tax above ~$90,997 of net income, indexed) is a separate constraint that can affect both decisions.
What to do next: Compare lifetime CPP across all three start ages with your numbers. Run the CPP calculator →
Most Canadians benefit from starting CPP and OAS at different ages. CPP can begin any time from 60 to 70, with a 0.6 percent monthly reduction before age 65 and a 0.7 percent monthly bonus after. OAS can begin at 65 or be delayed up to age 70 for a 0.6 percent monthly bonus. Because the bonus rates differ and only OAS is subject to the recovery tax (clawback), the optimal strategy is rarely “start both at 65.” A common pattern is to take CPP at 65 and delay OAS to 70, or take CPP at 70 and OAS at 65, depending on income before age 65 and life expectancy.
The two adjustment formulas
| Benefit | Earliest start | Latest start | Per-month adjustment | Maximum range |
|---|---|---|---|---|
| CPP | Age 60 | Age 70 | -0.6% before 65, +0.7% after 65 | -36% at 60 to +42% at 70 |
| OAS | Age 65 | Age 70 | +0.6% after 65 | 0% at 65 to +36% at 70 |
OAS does not have an early-start option. The first month you can collect OAS is the month after you turn 65, regardless of when you apply.
Why “both at 65” is rarely optimal
- CPP delay rate (0.7%/month) exceeds OAS delay rate (0.6%/month). Each year of CPP delay produces a higher lifetime bonus per dollar of foregone income.
- Only OAS is clawed back through the recovery tax. Higher-income retirees often delay OAS to a year when other income is lower.
- CPP and OAS payments are taxable. Stacking them at 65 with continued employment income can push a person into a higher marginal bracket.
- CPP includes a survivor benefit; OAS does not. Couples with significant age differences may delay CPP to maximize the survivor amount.
Worked example: $50,000 wage earner retiring at 65
A 65-year-old has accumulated CPP credits sufficient for an unadjusted pension of $1,200/month at 65. She also has $500,000 in RRSPs and plans to stop working. OAS at 65 (Apr-Jun 2026 maximum) is $743.05/month. Three timing strategies:
| Strategy | CPP at start | OAS at start | RRSP/RRIF withdrawals to bridge | Lifetime expected value vs starting both at 65 |
|---|---|---|---|---|
| Both at 65 | $1,200/mo | $743.05/mo | None required | Baseline |
| CPP at 70, OAS at 65 | $1,704/mo (+42%) | $743.05/mo | ~$72,000 from RRSP between 65 and 70 | +5% to +12% if she lives to 85+; -3% if she dies before 78 |
| CPP at 65, OAS at 70 | $1,200/mo | $1,010.55/mo (+36%) | ~$45,000 from RRSP between 65 and 70 | +3% to +8% if she lives to 85+; near break-even by 82 |
| Both at 70 | $1,704/mo | $1,010.55/mo | ~$117,000 from RRSP between 65 and 70 | Highest if she lives past 85 |
What changes the answer
| Factor | Pulls toward starting earlier | Pulls toward delaying |
|---|---|---|
| Health and life expectancy | Below-average | Above-average |
| Other retirement income (RRSP, pension) | Low; need cash flow | High; can afford to wait |
| OAS clawback risk | Below threshold ($93,454 in 2025) | Above threshold |
| Spouse age and pension | Older spouse needs survivor benefit sooner | Younger spouse benefits from larger CPP survivor amount later |
| Working past 65 | Stop working at 65 | Continuing to work past 65 |
| Government inflation indexation | Indifferent | Locks a higher base for indexed growth |
Application timing and forms
- CPP: apply through the My Service Canada Account or by mail using ISP1000 / ISP1003. Apply at least six months before you want payments to start. Late applications can be backdated up to 11 months.
- OAS: most people are auto-enrolled at 64. If not, apply through My Service Canada Account or by mail using ISP3550. Decisions to defer must be communicated by responding “no” to the auto-enrolment letter.
- You can change your mind: CPP can be cancelled within 12 months of starting (you must repay all amounts received). OAS can be cancelled within 6 months.
Cross-references
- For the CPP age decision, see CPP Start-Age Decision: 60 vs 65 vs 70.
- For RRSP-bridging strategies, see RRSP to RRIF Strategy Before Starting CPP and OAS.
- For working past 65, see CPP While Working: Contributions, PRB, and Opt-Out Rules.
- For clawback, see OAS Clawback in Retirement: How to Avoid the 15% Recovery Tax.
Frequently asked questions
- Can I start CPP and OAS at different ages?
- Yes. CPP can start any time from 60 to 70 and OAS from 65 to 70. They are independent decisions. Most retirement plans benefit from staggering them rather than starting both at 65.
- What is the OAS deferral bonus per month?
- 0.6 percent per month after age 65, up to a maximum 36 percent bonus at age 70.
- What is the CPP deferral bonus per month?
- 0.7 percent per month after age 65, up to a maximum 42 percent bonus at age 70. Before 65, CPP is reduced by 0.6 percent per month.
- Should I take CPP and OAS at 65?
- It depends on health, other income, OAS clawback risk, and spousal pension. The CPP delay rate is higher than the OAS delay rate, so if other income covers expenses, delaying CPP to 70 is often the more rewarding move.
- Does OAS have an early-start option like CPP?
- No. OAS cannot start before age 65. Eligibility begins the month after the 65th birthday.
- What is the OAS clawback threshold for 2025?
- $93,454 of net world income. Each dollar above the threshold reduces OAS by 15 cents until OAS is fully recovered.
- Can I cancel CPP if I change my mind?
- Yes, within 12 months of the first payment. You must repay all CPP received. OAS can be cancelled within 6 months.