Should I take OAS at 65 or wait until 70?

If you have other income and expect to live past 82-83, deferring to 70 gives 36% more per month and more total lifetime income. If you need the money or have health concerns, take it at 65.

How much more OAS do I get by waiting until 70?

OAS increases by 0.6% per month (7.2% per year) of deferral. By age 70, OAS is 36% higher — approximately $993/month instead of $730/month.

Does everyone get OAS at 65?

OAS is not automatic for everyone. If you have lived in Canada for 10+ years after age 18, you qualify. You need 40 years of residence for full OAS. You must apply or confirm enrollment with Service Canada.

When to Start OAS in Canada | 65 vs 70

OAS at 65 vs 70

Feature	Start at 65	Start at 70
Monthly amount	~$730	~$993 (+36%)
Annual amount	$8,760	$11,916
Cumulative by age 75	$87,600	$59,580
Cumulative by age 80	$131,400	$119,160
Break-even age		~82-83
Cumulative by age 85	$175,200	$178,740
Cumulative by age 90	$219,000	$238,320

Year-by-Year Comparison

Age	Cumulative at 65 Start	Cumulative at 70 Start	Winner
65	$8,760	$0	65 start
70	$43,800	$11,916	65 start
75	$87,600	$71,496	65 start
80	$131,400	$131,076	Tied
82	$149,160	$154,908	70 start
85	$175,200	$190,656	70 start: +$15,456
90	$219,000	$250,236	70 start: +$31,236
95	$262,800	$309,816	70 start: +$47,016

When to Start at 65

Reason	Details
Need the income now	No other income sources
Health concerns	Life expectancy below 83
Low income (qualify for GIS)	GIS is only available with OAS
Cash flow pressure	Debt payments, basic living expenses
OAS clawback applies	High income means less OAS anyway
Spouse needs support	Combined income needed now

When to Defer to 70

Reason	Details
Have other income (RRSP, pension, employment)	Don’t need OAS at 65
Good health / longevity	Family history of living past 85
Avoid OAS clawback	Deferring while still working avoids recovery tax
Maximize guaranteed income	More inflation-protected income for life
RRSP meltdown strategy	Withdraw RRSP at 65-71, delay OAS

The RRSP Meltdown + OAS Deferral Strategy

Age	Action	Why
65-69	Withdraw from RRSP/RRIF at low tax rate	Reduce RRSP balance
65-69	Defer OAS	Building +7.2%/year increase
70	Start receiving boosted OAS (+36%)	Higher guaranteed income
72+	Lower RRIF minimums	Less taxable income = less clawback

Example: $500K RRSP, $50K Pension

Approach	Age 65-69 Income	OAS at start	OAS Clawback
Start OAS at 65	$50K + $8.8K OAS + RRIF = $75K+	$730/mo	Possible
Defer, melt RRSP	$50K + $30K RRSP = $80K	$0 (deferred)	None
Start OAS at 70	$50K + $12K OAS + lower RRIF	$993/mo	Lower risk

OAS Clawback Considerations

Scenario	Take at 65?	Defer to 70?
Income under $90K	✅ Full OAS	Either works
Income $90K-$120K	Partial clawback	🤔 Could defer to reduce income
Income $120K+	Heavy clawback	✅ Defer (OAS mostly clawed back anyway)
Will retire at 65	Either	✅ Good candidate for deferral
Keep working past 65	✅ Could take it	✅ Better to defer (high income = clawback)

Partial Deferral Options

You can start OAS at any month between 65 and 70:

Start Age	Monthly OAS	Increase vs 65
65	$730	0%
66	$783	+7.2%
67	$835	+14.4%
68	$888	+21.6%
69	$941	+28.8%
70	$993	+36%

Flexibility: Start OAS when you actually need it, not necessarily exactly at 65 or 70.

Decision Flowchart

Question	If Yes	If No
Do you need the income now?	Take at 65	Continue ↓
Is your income above $90K?	Consider deferring	Continue ↓
Do you have health concerns?	Take at 65	Continue ↓
Do you have RRSP to melt down?	Defer and melt RRSP	Continue ↓
Will you likely live past 83?	Defer to 70	Take at 65