Few retirement questions come up more often in retirement planning conversations than this one: "When should I start my CPP and OAS?" It's a great question, and it doesn't have a single right answer. The best timing depends on your health, your income, your tax situation and your goals for retirement.
That's why we've put together a list of the top 10 questions we receive about CPP and OAS. After reviewing these questions, you can schedule an appointment with an Edward Jones financial advisor, who can provide further information regarding your specific situation.
What are CPP and OAS?
The Canada Pension Plan (CPP) retirement pension is a taxable monthly benefit that replaces a portion of your income when you retire. If you qualify, you receive CPP for the rest of your life. Your monthly amount depends on how much and how long you contributed to the plan.
Old Age Security (OAS) is a taxable monthly benefit that provides seniors with a modest pension. Unlike CPP, OAS doesn't depend on your work history or contributions; it depends on your years of residence in Canada. If you qualify, you receive OAS for life.
CPP and OAS programs work independently of each other, which is one of the most important things to understand: you don't have to start them at the same age.
When can you collect CPP and OAS?
CPP and OAS retirement benefits both have a regular start date of age 65. Yet, CPP benefits can begin as early as age 60, or as late as age 70, while OAS can begin anywhere from age 65 to 70. You reach maximum monthly amount at age 70 for either benefit, so there's no advantage to waiting beyond that point.
How much does CPP change based on when you start?
The adjustment is permanent and reflects your start age:
- Start before 65: Your CPP drops by 0.6% for every month you start early, which works out to 7.2% per year. Start at 60 and your benefit shrinks by up to 36% compared with age 65.
- Start after 65: Your CPP grows by 0.7% for every month you delay, or 8.4% per year. Start at 70 and your benefit rises by up to 42% compared with age 65.
To put that in perspective, if your CPP at 65 would be $1,000 a month, starting at 60 reduces it to roughly $640, while waiting until 70 increases it to roughly $1,420 for life.
How much does OAS change based on when you start?
OAS doesn't offer an early-start option, but delaying past 65 pays off:
- Start at 65: You receive the standard amount.
- Delay past 65: Your OAS grows by 0.6% for every month you wait, or 7.2% per year. Start at 70 and your benefit rises by up to 36% compared with age 65.
For July to September 2026, the maximum OAS payment is $751.97 a month for ages 65 to 74 and $827.17 a month at age 75 and older, when an automatic 10% increase kicks in.
Should you start CPP and OAS at the same age?
Not necessarily. Because CPP and OAS follow separate rules, the strategy that makes sense may involve staggering them rather than starting both at 65.
For example, some retirees take CPP at 65 and delay OAS to 70, while others do the opposite. The right combination depends on your income, your tax bracket and whether you face the OAS recovery tax. The key is to look at each benefit on its own merits.
When might delaying CPP pay off?
There's a point at which waiting for a larger monthly payment catches up to the money you would have received by starting earlier. For CPP, that crossover age between starting at 65 and starting at 70 falls around age 81 to 82.
In simple terms, if you expect to live past your early 80s, delaying to 70 may result in more lifetime income. If your life expectancy is shorter, starting earlier may make more sense. This is why your health and family history matter so much to the decision.
Is your OAS at risk of a clawback?
OAS carries an income test, which means higher-income retirees may have to repay part or all of their benefit through what the government officially calls the "OAS recovery tax."
For 2026, the recovery tax begins when your net world income exceeds $95,323. For every dollar above that threshold, you repay 15% of your OAS. At $155,109 of income for ages 65 to 74, you lose your entire OAS, and $161,088 for age 75 and older.
If your income sits high enough that the government would claw back most or all of your OAS, it may make sense to delay starting OAS until a year when your income runs lower.
Are CPP and OAS taxable?
Yes. Both CPP and OAS count as fully taxable ordinary income. If you already sit in a high tax bracket in the year you start benefits, you may want to defer them to a later year when your income (and your tax rate) may run lower.
This matters especially if you're still working at 65. Taking CPP and OAS while earning a salary adds taxable income on top of your earnings, which can push you into a higher bracket and trigger the OAS recovery tax at the same time.
Should you start CPP and OAS if you are working at 65?
If you're earning income, CPP and OAS would add taxable income on top of your salary, which can raise your tax bill and increase your exposure to the OAS clawback.
Delaying both can be valuable here: your benefits grow while you wait, and you may avoid a larger tax bill in the years you're still working. Of course, if you need the income to meet your living expenses, starting earlier is a perfectly reasonable choice.
What if I have a shorter life expectancy?
If your health or family history suggests a shorter life expectancy, it often makes sense to start CPP and OAS earlier rather than later. Starting earlier means you receive benefits for more of the years you're likely to be alive, which can maximize the total amount you receive.
This is one of the most personal parts of the decision, and it's worth discussing with someone who understands your full situation.
What other factors should you consider?
A few more things shape the right timing:
- Other sources of income: If you have RRSPs, a pension or other savings, you may have more flexibility to delay CPP and OAS.
- Risk tolerance: CPP and OAS offer a guaranteed, indexed return that can look attractive compared with conservative investments. If you have a low risk tolerance, delaying can feel like a sensible investment.
- Spousal benefits: Survivor benefits and your partner's income can affect the math, so it's worth looking at the decision for your household, not just for yourself.
- Inflation protection: Both CPP and OAS adjust for inflation, which means their value holds against rising prices over time, which can make delaying appealling.
How do you decide the right time to start CPP and OAS?
Determining the optimal time to begin your CPP and OAS benefits is not a one-size-fits-all type decision. Sound advice for one person may be completely inappropriate for another. Consider the items indicated above, and any other relevant considerations in your own personal situation, as you work with an Edward Jones financial advisor to determine the best time to start your CPP and OAS retirement benefits.