How OAS Deferral Works
Old Age Security starts at age 65, but you can choose to delay it up to age 70. For every month you defer, your payment increases by 0.6%. That's 7.2% per year, and if you wait the full 5 years, you get a permanent 36% increase.
Unlike CPP, there's no application needed to defer — you simply don't apply for OAS at 65. When you do apply (any time between 65 and 70), the increase is calculated automatically based on how many months you waited.
Monthly OAS by Start Age (2026 Estimates)
Age 65
$727
Age 67
$832
Age 70
$989
Pros and Cons of Deferring OAS
Pros
- • 36% permanent increase at age 70
- • Better inflation protection (higher base amount)
- • Longevity insurance — pays off the longer you live
- • May help if you're still working at 65
Cons
- • You give up 5 years of payments ($43k+)
- • Breakeven is around age 82–83
- • Health concerns may favor taking early
- • You need other income to cover the gap
Using the SimRetire OAS Deferral Calculator
Our calculator lets you input your expected OAS amount, desired start age, and life expectancy to see the total lifetime OAS you'd receive under different scenarios. It shows you exactly when the "delay" strategy overtakes the "take it early" strategy.
Enter your details, and the calculator produces a crossover chart showing the cumulative dollars received at each age. If the lines cross before your expected lifespan, deferral wins.
Example: Deferring OAS from 65 to 70
Margaret is 64 and trying to decide. At 65 she'd get $727/month ($8,724/year). At 70 she'd get $989/month ($11,868/year). The yearly difference is $3,144.
But she gives up 5 years of payments: $8,724 × 5 = $43,620. To recoup that amount at $3,144/year of extra income, she needs about 14 years — meaning deferral breaks even around age 84.
If Margaret lives to 90, she comes out ahead by about $19k. If she lives to 95, the gap widens to $35k. The longer she lives, the bigger the win from deferral.
Frequently Asked Questions
What is the OAS deferral increase percentage?
OAS increases by 0.6% for each month you defer past 65, which adds up to 7.2% per year. The maximum increase is 36% if you defer to age 70.
What is the OAS deferral breakeven age?
The breakeven age is typically around 82–83, depending on your specific OAS amount and any clawback. After that age, the higher deferred payments overtake the total received by starting at 65.
Should I defer OAS if I have the clawback?
It depends. If your income is well above the clawback threshold now but will drop later, deferring can make sense — you'd avoid clawback during working years and collect a larger amount when your income is lower.
SimRetire Editorial Team
Canadian Retirement Experts
This guide has been rigorously reviewed by our editorial team to ensure 100% compliance with 2026 Canadian tax laws and CRA guidelines. Our mission is to provide accurate, independent, and accessible financial education for all Canadians.