How Do I Delay CPP and OAS? The Steps to Take

Start With the Short Answer

You delay the Canada Pension Plan (CPP) by not applying yet. Nothing starts on its own. You defer Old Age Security (OAS) by telling Service Canada, in writing, that you want to wait.

Both payments grow for each month you hold off past 65. CPP adds 0.7% a month, which reaches 42% more at 70. OAS adds 0.6% a month, which reaches 36% more at 70. The growth stops at 70.

That is the whole trick. The rest is paperwork and planning.

Why Waiting Pays

Retirement benefits work in reverse from what most people expect. Starting early shrinks the check. Starting late grows it. Both programs also adjust for inflation, so the bigger amount you earn by waiting keeps its buying power over time.

A made-up example shows the size of the swing. Say your CPP at 65 would be $1,000 a month. Here is what the same record pays at other ages.

Start age	Share of the age-65 amount	Monthly CPP	Monthly OAS (from $1,000 at 65)
60	64%	$640	Not available
65	100%	$1,000	$1,000
67	116.8%	$1,168	$1,144
70	142%	$1,420	$1,360

The math: at 67 you get 24 months of extra credit. For CPP that is 24 x 0.7% = 16.8%, so $1,000 x 1.168 = $1,168. For OAS that is 24 x 0.6% = 14.4%, so $1,000 x 1.144 = $1,144. At 70 the CPP figure is 60 x 0.7% = 42% and the OAS figure is 60 x 0.6% = 36%.

The catch is the gap. Every month you wait is a month with no payment from that program.

Check Three Things First

Money to live on. If you retire at 63 and wait for CPP, you need savings to cover the gap. Bridge money from a TFSA, a tax-free savings account, or an RRSP, a tax-sheltered retirement account, can carry you. Note that RRSP withdrawals count as income and can affect OAS later. If you are leaving work early, read retiring early when benefits start later first.

Your health and your family history. Waiting pays off if you expect a long retirement. It pays off less if you may need the money sooner.

The Guaranteed Income Supplement (GIS). This is a top-up for low-income seniors. You can only get it once OAS starts. If GIS is a big part of your plan, deferring OAS also delays that top-up, so run both numbers before you decide.

One more: CPP and OAS are taxable, and OAS can be clawed back, meaning part of it is taken back, when your income is high. The clawback threshold changes every year, so check Old Age Security pension on canada.ca for the current figure.

How to Delay CPP, Step by Step

1. Do not send the application. CPP is not automatic. If you never apply, the clock does not start and the credit builds.

2. Pick your target month. Write it down. A common plan is to use CPP last, after savings and any pension.

3. Apply about three months before that month. You want the first payment to land when you planned, not six weeks later. You apply through Service Canada. The Canada Pension Plan benefits page has the current forms and contact details.

4. Check your amount before you commit. Your CPP estimate sits in your My Service Canada Account. A bigger payment at 70 is only worth it if you can cover the years before it.

5. Watch the 70 wall. The increase stops at 70. If you apply late, CPP is generally backdated only up to 12 months, and never to before the month you turned 70. So a late application can lose you payments. Send it well before 70.

6. Keep contributing if you work. Paying into CPP while employed can add post-retirement benefits, small extra amounts added to your pension.

How to Delay OAS, Step by Step

OAS has a quirk CPP does not. Service Canada enrolls many people without an application. If you are auto-enrolled, silence means a start at 65. If you are not, you have to apply, and doing nothing means no OAS at all.

1. Watch for the letter. It usually arrives around age 64. Read it.

2. Tell them you want to wait. If you are auto-enrolled and do nothing, OAS starts at 65. To defer, you have to say so in writing, using the deferral option on the OAS application.

3. Confirm it in writing. Ask for written confirmation of your chosen start month and keep it. Mistakes happen, and a wrong start date is easier to fix early.

4. Apply well before you turn 70. The bonus stops at 70, and a late application can cost you payments. Send it well ahead, and confirm the start month you want in writing. The Old Age Security pension page lists the residency rules too. You generally need 10 years in Canada after age 18 to collect here, or 20 years to collect abroad.

5. Do not defer if you are on GIS without a plan. Losing OAS also means losing the GIS that rides with it.

When Waiting Is the Wrong Move

Deferring is not always right. Skip it or shorten it if:

• Your health is poor or your family tends to have short lives.
• You have no savings to bridge the gap and would need to borrow.
• You are on GIS and the top-up is most of your income.
• You need the money now for rent, food or medicine.

A smaller check that arrives in time beats a bigger one you cannot reach.

If You Already Started

You are not stuck. You can cancel a pension that just started, repay what you received, and restart later at a higher rate. Each program allows a one-time cancellation within six months of the start date if you repay the amounts. Check with Service Canada for the current rules and the exact steps in your case.

Mistakes That Cost People the Bonus

• Applying just to see the number. The application starts payments. Use your online estimate instead.
• Deferring with no bridge money. A bigger check at 70 does not help if you drain your savings at 66.
• Assuming OAS is automatic forever. It is automatic at 65. Deferring it is not.
• Missing the 70 cap. Waiting past 70 gains nothing, and applying after 70 can lose months.
• Ignoring taxes. Two bigger, taxable checks can push you into a higher bracket and into the OAS clawback. See how taxes work in retirement.

Where the Math Gets Hard

The tricky part is not the paperwork. It is the trade: how many years of savings do you need to bridge to 70, and does the bigger payment actually beat spending your own money early? Our guide on when to take CPP and OAS walks through that comparison.

If you want the whole picture in one place, When Can I Retire works out the age you can retire and how ready you are today, showing every step of the math, counting CPP, OAS, pensions, taxes and inflation, plus the years before benefits start. It is a free check, and you can upload a statement or type numbers. Try it at /signup.