OAS at 65 vs 70: Should You Delay Your Old Age Security? (2026)
Updated
Should you start Old Age Security (OAS) at 65 or delay until 70? Unlike CPP which can start at 60, OAS starts no earlier than 65 — but delaying to 70 increases your payment by 36%. This guide compares OAS at 65 vs 70 with 2026 payment amounts, break-even analysis, clawback considerations, and scenarios to help you decide.
OAS at 65 vs 70: 2026 Overview
Start Age
Adjustment
Monthly Amount
Annual Amount
65
0%
$751.97
$9,024
66
+7.2%
$806.11
$9,673
67
+14.4%
$860.25
$10,323
68
+21.6%
$914.40
$10,973
69
+28.8%
$968.54
$11,622
70
+36%
$1,022.68
$12,272
Based on Q3 2026 (July-September) maximum OAS. Amounts are indexed quarterly to inflation.
Key difference from CPP: There is no early OAS option. Your choice is start at 65, or delay up to age 70.
How the Delay Works
Factor
Value
Monthly increase
0.6%
Yearly increase
7.2%
Maximum increase (age 70)
36%
Increase after 70
0% (no additional benefit)
Important: Once you start, your percentage adjustment is permanent. The dollar amount increases with inflation, but your relative position (36% higher, etc.) stays fixed.
Break-Even Analysis
Total OAS at 65 vs 70 Over Time
Age
Total if Start 65
Total if Start 70
Difference
70
$45,118
$0
+$45,118 (65 ahead)
75
$90,236
$61,361
+$28,875 (65 ahead)
80
$135,355
$122,722
+$12,633 (65 ahead)
82
$153,402
$147,266
+$6,136 (65 ahead)
83
$162,426
$159,538
+$2,888 (65 ahead)
84
$171,449
$171,810
-$361 (70 catches up!)
85
$180,473
$184,082
-$3,609 (70 ahead)
90
$225,591
$245,443
-$19,852 (70 ahead)
95
$270,709
$306,804
-$36,095 (70 ahead)
Break-even: ~Age 83-84
If you live past 84, delaying OAS to 70 results in higher total lifetime benefits.
Life Expectancy Context
Category
Life Expectancy (at age 65)
Canadian male at 65
84.4 years
Canadian female at 65
87.2 years
Both combined
85.8 years
Average Canadians live 2-4 years past the break-even point, making delay mathematically favorable for most.
When to Start OAS at 65
Good Reasons for Age 65
Reason
Explanation
Need the income
No other income source
Health concerns
Shorter life expectancy
Eligible for GIS
GIS only available with OAS
No clawback
Income below threshold
Certain income now
Prefer money in hand
Numbers Favor 65 If:
Factor
Details
Life expectancy
Under ~84
GIS eligible
Combined GIS + OAS exceeds delayed OAS
No other income
Need money now
Risk averse
Value certainty over optimization
When to Delay OAS to 70
Good Reasons to Delay
Reason
Explanation
Excellent health
Family longevity, expect to live past 85
Other income 65-70
Pension, RRSP, work income available
Current clawback
Income 65-70 would trigger clawback
Maximize guaranteed
Want higher permanent inflation-protected income
Longevity insurance
Hedge against living very long
Numbers Favor 70 If:
Factor
Details
Life expectancy
Past ~84
Can bridge 65-70
Other income available
Currently in clawback
High income now, lower later
Spouse younger
Maximize potential survivor position
OAS Clawback (Recovery Tax)
2026 Clawback Thresholds (Estimated)
Threshold
Amount
Clawback starts
$93,454 net income
Clawback rate
15% of income above threshold
Full clawback
~$152,062 net income
How Clawback Works
Your Net Income
OAS Reduction
Approximate OAS Left
$93,454
$0
$751.97/mo (full)
$100,000
$982/yr
$670/mo
$110,000
$2,482/yr
$545/mo
$120,000
$3,982/yr
$420/mo
$130,000
$5,482/yr
$295/mo
$140,000
$6,982/yr
$170/mo
$152,062+
Full recovery
$0
Clawback Strategy: Delay If Income Will Drop
Years 65-70
Years 70+
Strategy
High income
High income
Delay won’t help much
High income
Lower income
Delay is valuable
Low income
Low income
Start at 65
Low income
High income
Start at 65
Best candidate to delay: Someone whose income is high at 65 (e.g., still working, large RRSP) but will drop after 70 (retired, reduced withdrawals).
GIS: Critical Factor for Low-Income Seniors
What Is GIS?
Feature
Details
Purpose
Top-up for low-income OAS recipients
Maximum (single) 2026
~$1,086/month
Maximum (couple, each)
~$654/month
Income tested
Reduces as income rises
Combined with OAS
Up to ~$1,800/month total
GIS and OAS Delay
Key Point
Details
GIS requires OAS
No GIS until OAS starts
GIS during 65-70
Lost forever if you delay OAS
GIS value
Often exceeds 36% OAS increase
For GIS-eligible seniors: Starting OAS at 65 is almost always better. Five years of GIS payments typically exceeds the value of increased OAS at 70.
GIS Break-Even Example
Calculation
Amount
GIS ages 65-70
~$65,000 (5 years × $1,086 × 12)
OAS increase at 70
$271/month extra
Years to recoup GIS loss
~20 years
Break-even age
~90 years old
For GIS recipients, break-even may be near 90 — making delay a poor choice.
Coordinating OAS with CPP
Combined Decision Matrix
CPP Decision
OAS Decision
Best For
Start CPP at 60
Start OAS at 65
Need income ASAP
Start CPP at 65
Start OAS at 65
Simplicity, average health
Start CPP at 70
Start OAS at 70
Maximize both, excellent health
Start CPP at 60
Start OAS at 70
Use CPP to bridge, delay OAS
Start CPP at 70
Start OAS at 65
Prioritize OAS now, delay bigger benefit
Total Monthly Income Comparison
Start Ages
CPP
OAS
Total
CPP 65 + OAS 65
$1,433
$752
$2,185
CPP 60 + OAS 65
$917
$752
$1,669
CPP 70 + OAS 70
$2,035
$1,023
$3,058
CPP 65 + OAS 70
$1,433
$1,023
$2,456
CPP 70 + OAS 65
$2,035
$752
$2,787
*Using 2026 maximum amounts.
Real-World Scenarios
Scenario 1: Good Health, Pension Available
Factor
Details
Person
65-year-old, excellent health, DB pension
Pension
$40,000/year from former employer
Goal
Maximize lifetime retirement income
Recommendation
Delay OAS to 70
Why: Pension bridges the gap. Good health suggests living past break-even. 36% increase is valuable.
Scenario 2: Low Income, GIS Eligible
Factor
Details
Person
65-year-old, minimal savings, no pension
Income
Only CPP (~$700/month)
GIS
Would receive full GIS
Recommendation
Start OAS at 65
Why: Combined OAS + GIS of ~$1,800/month far exceeds delayed OAS. Never delay if eligible for GIS.
Scenario 3: High Income with Clawback
Factor
Details
Person
65-year-old dentist, planning to work until 68
Income 65-68
$150,000+/year (full clawback)
Income after 68
~$80,000 from investments
Recommendation
Delay OAS to 69 or 70
Why: Would receive $0 OAS during clawback years anyway. Delaying adds 36% to payments when income drops.
Scenario 4: Health Concerns
Factor
Details
Person
65-year-old with chronic illness
Prognosis
Life expectancy uncertain, likely under 80
Savings
Modest RRSP
Recommendation
Start OAS at 65
Why: Break-even is ~84. Take the guaranteed income now.
Scenario 5: Spouse 10 Years Younger
Factor
Details
Person
65-year-old, spouse is 55
Household income
Spouse still working
Goal
Maximize household lifetime income
Recommendation
Delay OAS to 70
Why: Household doesn’t need income yet. Higher OAS benefits both spouses’ retirement.
OAS Deferral Notification
How to Delay OAS
Step
Details
1
OAS starts automatically at 65 if enrolled
2
To defer, notify Service Canada before 65
3
Submit request online, by phone, or mail
4
Can change mind later — start anytime 65-70
What If You Already Receive OAS?
Situation
Options
Started at 65
Cannot “un-start” — percentage is fixed
Approached 65
Can still defer if not yet started
In deferral period
Can start anytime between now and 70
Age 75+ Bonus
Since July 2022, seniors 75 and older receive an additional 10% on their OAS:
Age
Monthly OAS
65-74
Standard amount
75+
Standard + 10%
This 10% bonus applies regardless of when you started OAS and is in addition to any deferral increase.
Started At
Amount at 75
65
$827.17 ($751.97 × 1.10)
70
$1,124.95 ($1,022.68 × 1.10)
Tax Considerations
OAS Is Taxable
Tax Factor
Impact
Income inclusion
OAS adds to taxable income
Tax rate
Taxed at marginal rate
Clawback
Additional 15% recovery above threshold
Provincial
Subject to provincial tax too
Marginal Effective Tax Rate During Clawback
Component
Rate
Federal tax
~22% (at clawback range)
Provincial tax
10-15% (varies)
OAS clawback
15%
Total marginal
47-52%
During clawback, each additional dollar of income costs 47-52 cents.