When should I take CPP and OAS?

CPP: age 60 to 70, both directions

The standard age for CPP is 65. Take it as early as 60 and your payment is reduced by 0.6% for every month before 65 — up to a maximum reduction of 36% at exactly 60. Delay past 65, up to age 70, and it increases by 0.7% a month — up to a maximum increase of 42% at 70. Unlike Social Security, CPP is the only one of the two Canadian benefits you can start early.

OAS: age 65 to 70, one direction only

OAS can’t start before 65 — there’s no early option. You can defer it up to 5 years, to age 70, and it grows by 0.6% for every month you wait, up to a maximum of 36% at 70. There’s no advantage to waiting past 70 — the increase stops there, and you’d simply be losing payments.

The OAS clawback — watch your income, not just your age

OAS has a recovery tax (people call it “the clawback”): once your net income passes $93,454 (2025), OAS is reduced by 15 cents for every dollar over that line, until it’s gone entirely at a higher income level. This matters most for the year you’re still working and collecting OAS at the same time — deferring OAS a year or two past 65 can sometimes avoid the clawback if you’re still earning a high income right at 65.

A worked example

CPP and OAS don't have to move together

You can start CPP at 60 and still defer OAS to 70, or any other combination — they’re separate decisions. The right mix depends on your other income, your health, and whether you need the money now or can afford to wait for more later. When Can I Retire runs both benefits against your real numbers, for exactly this kind of mix-and-match comparison.