How much does OAS increase if I defer past 65?

Old Age Security (OAS) increases by 0.6% for each month you defer past age 65, up to age 70. This equals 7.2% per year of deferral. If you wait the full 5 years to age 70, your OAS is permanently increased by 36%. For example, if your OAS at age 65 would be $700/month, deferring to 70 gives you $700 × 1.36 = $952/month for life. This increase is permanent and also indexed to inflation through the quarterly OAS indexation.

What is the breakeven age for OAS deferral?

The breakeven age is approximately 83-84 when comparing starting OAS at 65 versus starting at 70. If you start at 65, you collect 5 extra years of payments from ages 65-70. If you start at 70, your payments are 36% higher for the rest of your life. Roughly, you need to live past age 83-84 to come out ahead by deferring to 70. The average Canadian life expectancy at 65 is approximately 86 for women and 83 for men. Good health and family history of longevity generally favour deferral.

Does deferring OAS reduce the OAS clawback?

Yes, deferral can be strategically valuable for high-income earners who expect clawback. The OAS clawback (recovery tax) reduces your OAS by 15 cents for every dollar of net income above approximately $90,997 in 2026. High earners between 65-70 who are still working, converting RRSPs to RRIFs, or taking large registered withdrawals often face partial or full clawback anyway. By deferring OAS to 70 (when income is often lower), they avoid clawback on reduced income AND receive 36% more per month — a double benefit.

Can I still defer OAS if I live outside Canada?

Yes. Canadian non-residents who qualify for OAS can still defer past age 65. Non-residents receive OAS subject to a 25% withholding tax (reduced to 15% for many countries under a tax treaty, including the US). The deferral increase (0.6%/month) applies equally to non-residents. However, non-residents cannot access the Guaranteed Income Supplement (GIS), which is income-tested and available only to low-income Canadian residents.

OAS Deferral Guide Canada 2026 — Should You Delay OAS Past 65?

Old Age Security (OAS) is Canada’s universal retirement benefit, payable to most Canadians aged 65 and older. While 65 is the earliest you can start receiving OAS, you have the option to voluntarily defer OAS by up to 5 years — to a maximum age of 70. Each month of deferral permanently increases your monthly payment by 0.6% (7.2% per year, 36% maximum at age 70). This is a powerful, government-guaranteed, inflation-indexed return on the deferral — but it is not right for everyone.

Quick answer: OAS deferral: +0.6%/month, +7.2%/year, +36% maximum at age 70. Breakeven: ~age 83-84. Best for: healthy individuals, those still working 65-70, high earners avoiding clawback at 65-70, and those with sufficient other income to bridge the gap. Not ideal for: poor health, low income, or those who need GIS (GIS is reduced by OAS deferral).

2026 OAS Monthly Amount and Deferral Calculation

2026 full OAS pension (age 65, 40+ years in Canada): Approximately $727.67/month (indexed quarterly).

Deferral Age	Increase	Monthly Amount	Annual Amount
65 (no deferral)	0%	$727.67	$8,732
66 (12 months)	+7.2%	$780.07	$9,361
67 (24 months)	+14.4%	$832.46	$9,990
68 (36 months)	+21.6%	$884.86	$10,618
69 (48 months)	+28.8%	$937.26	$11,247
70 (60 months)	+36%	$989.63	$11,876

The higher payment is also indexed to inflation going forward — so the 36% increase compounds on top of future CPI adjustments.

The Breakeven Calculation

If you defer OAS, you forgo payments during the deferral years. To break even, the higher future payments must recoup the foregone income.

Example — defer from 65 to 70:

Item	Amount
OAS foregone (ages 65-70): $727.67/month × 60 months	$43,660
Monthly benefit increase at 70: $989.63 − $727.67	$261.96/month
Months to recoup: $43,660 / $261.96	~167 months (~14 years)
Breakeven age: 70 + 14 years	Age 84

If you live past age 84, you collect more in total by deferring. The longer you live beyond the breakeven, the greater the advantage of deferral.

Health-adjusted breakeven: If you account for the time value of money (your foregone OAS could have been invested), the breakeven age rises slightly — typically to 85-87 in real-dollar terms at a 3-4% assumed return on invested OAS.

Who Benefits Most from Deferral

1. Healthy Individuals with Long Life Expectancy

If you are in good health at 65, female (women live longer on average), and have family longevity, you are more likely to live past the 83-84 breakeven. The longer you live, the more valuable deferral becomes.

2. High Earners Between 65-70

The OAS clawback begins at approximately $90,997 in net income for 2026. If you are still working between 65-70 and earning above this threshold, your OAS is partially or fully clawed back at 15 cents per dollar. Rather than receiving reduced OAS (or having it fully clawed back), defer it to age 70 when your income may be lower — then receive 36% more per month with no clawback.

3. Those with RRSP/RRIF Conversion Pressure

Between ages 65-71, many Canadians face large RRSP/RRIF withdrawals that push income above the clawback threshold. Deferring OAS to age 70 avoids stacking OAS income on top of already-high registered withdrawals during this period.

4. People Who Are Still Working

If you are working at 65 and do not need OAS income, deferring costs you nothing in lifestyle terms — you simply let the increase accumulate.

Who Should NOT Defer OAS

Poor health or reduced life expectancy: If medical conditions suggest you are unlikely to live past age 83, taking OAS at 65 (or as soon as eligible) maximises lifetime income
Low income: If your income is below the OAS clawback threshold and you need the funds, take OAS at 65 — there is no clawback risk, and the immediate cash is valuable
Eligible for GIS: The Guaranteed Income Supplement (GIS) tops up OAS for low-income seniors. If you defer OAS, you also defer GIS eligibility — losing valuable supplement income. Very low-income seniors should generally take OAS (and GIS) at 65 rather than deferring
Unmarried with shorter planning horizon: Single individuals without dependents have less longevity hedge; deferral is riskier

Deferral vs CPP Deferral: A Combined Strategy

CPP can also be deferred from age 60 to 70, with a 0.7% increase per month past age 65 (8.4%/year) and a 42% maximum increase at 70 compared to the age-65 amount. Some Canadians choose to defer both — or to take one and defer the other.

Common combined strategy: Take CPP at 65 (or even 60 if income is needed) and defer OAS to 70. This provides some income bridge between 65-70 while still gaining the OAS deferral increase.

Alternatively, defer both CPP and OAS to 70 if you have sufficient RRSP, pension, or personal savings to live on from 60-70.

How to Apply for Deferred OAS

OAS does NOT start automatically when you turn 65 (for most Canadians, Service Canada now pre-enrolls those with sufficient records — you receive a letter). To defer:

If pre-enrolled: Contact Service Canada and decline the automatic enrollment, indicating you want to defer
If not pre-enrolled: Simply do not apply until you are ready to begin receiving OAS

Apply for OAS up to 11 months before the date you want payments to begin. Note: You cannot receive retroactive OAS payments for periods before you applied (unlike CPP, which allows some retroactivity). The decision to defer is personal and can be changed — you can apply for OAS at any time between 65 and 70.

OAS Clawback Guide — when and how the 15% recovery tax applies
CPP Guide 2026 — how CPP benefits are calculated and when to start
RRIF Withdrawal Rules — mandatory RRIF withdrawals from age 71
CA Retirement Hub — all Canadian retirement and pension guides

Deferring OAS to 70 is one of the best longevity insurance strategies available to healthy Canadians with sufficient income between 65-70. The 36% permanent, inflation-indexed increase is a government-backed, completely secure return that cannot be outlived — making it particularly valuable for couples and women, who statistically need retirement income for longer.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy