Voluntary deferral of the Old Age Security pension

Effective July 1, 2013, you can choose to delay receiving your OAS pension for up to 5 years. You will receive an increased amount of 0.6% to your OAS pension for every month you delay receipt, up to a maximum of 36% (60 months) at age 70.

You should consider your personal situation when deciding when to start receiving your OAS pension. It is important to note that if you delay your pension you will not be eligible to receive the Guaranteed Income Supplement and your spouse or common-law partner will not be eligible to receive the Allowance until you start your OAS pension.

Example of an OAS Deferral of one year

Michael turns 65 in July 2013. If he decides to delay receiving his OAS pension for one year, his monthly amount would increase by 7.2% (0.6% x 12 months).

Example of an OAS Deferral of five years

Rita will be turning 65 in December 2013. If she decides to delay receiving her OAS pension for the maximum deferral period of five years, her monthly amount would increase to 36% at age 70 (0.6% x 60 months).

Example of an OAS Deferral with a retroactive payment

John turned 65 in June 2013. He decides to delay his OAS pension. In December 2014, John is ready to apply for his OAS pension.

Although John can be retroactively paid for up to 11 months, he indicates on his application that he would like his OAS pension to be effective September 2014. As a result, he would receive a retroactive payment to September 2014. This payment would include the adjustments from July 2013 to August 2014 (14 months) to account for the deferral period.  His pension amount would be increased by 8.4% (0.6% x 14 months).

You can use the Canadian Retirement Income Calculator to estimate what delaying your OAS pension will do for you.

If I am eligible for my OAS pension before July 2013, can I start deferring my pension?

Yes. If you turn 65 before July 2013, you may choose to delay receiving your OAS pension up to age 70 in exchange for a higher monthly amount. However, the increased monthly amounts will only be calculated from July 2013 to the month preceding your first OAS pension payment or the month of your 70^th birthday, whichever is earlier.

If I want to defer my OAS pension, when should I apply?

The rules around when you should apply for your OAS pension have not changed. You can apply no earlier than 11 months before your 65^th birthday or no earlier than 11 months before the date you wish your pension to start.

Does the increase also apply to my other OAS benefits?

No. The increase only applies to your OAS pension.  The Guaranteed Income Supplement, Allowance and the Allowance for the Survivor will not be actuarially adjusted.