OAS normally starts at 65—or later if you choose.
Basic eligibility depends on age, legal status and how long you have lived in Canada. If you qualify, OAS can begin at age 65 or be delayed one month at a time until age 70. The monthly payment increases by 0.6% for every month of delay—7.2% for a full year and as much as 36% at age 70. There is no further increase for waiting beyond age 70.
OAS does not have to start with CPP or a workplace pension. The question is how its timing fits with the income you need, the income you already have and the rest of your retirement plan.
Four things to consider before delaying OAS
Do you need the income now?
Starting at 65 may help cover spending without drawing as much from other savings.
Do you expect higher taxable income?
OAS is taxable income. Income from work, pensions or withdrawals can increase the regular tax on OAS, and sufficiently high net income can also trigger the recovery tax.
Could GIS eligibility matter?
GIS generally cannot begin before OAS, and government guidance says delaying offers no benefit when someone is eligible for GIS.
How might health and expected longevity matter?
Someone expecting a shorter retirement may place more value on income sooner. Someone in very good health who is planning for a long retirement may place more value on a larger payment later. No one can predict lifespan, so consider this alongside other income and household plans.
Two simplified examples
The same choice can fit different circumstances.
Starting OAS at 65
Someone may need the income now, have limited other income or expect GIS eligibility to matter. Starting at 65 provides OAS sooner, but at a smaller monthly amount than if it were delayed.
Delaying OAS
Someone may continue working or feel comfortable using other income while waiting. Delaying gives up payments during the delay in exchange for a larger future monthly amount.
Tax can affect the amount you keep
Regular income tax and the recovery tax are separate.
OAS is included in taxable income, so it can be taxed at your combined federal and provincial marginal rate. Separately, the OAS recovery tax repays 15% of net world income above the applicable threshold, up to the OAS received.
For the 2025 income year, recovery began above $93,454. A maximum OAS pension was fully recovered at approximately $152,062 of net world income for ages 65 to 74, or $157,923 for age 75 and older. These amounts are adjusted over time, and the point of full recovery can differ when someone receives less than the maximum pension.
See an example
A simplified Ontario example for 2025
Assume an Ontario resident age 65 or older already had approximately $95,000 of both taxable income and net income before receiving another $1,000 of OAS.
| Effect on the additional $1,000 | Approximate amount |
|---|---|
| Regular federal and Ontario income tax | $337 |
| OAS recovery tax | $150 |
| Amount remaining | $513 |
The regular-tax estimate is about 33.7%. It reflects the 20.5% federal bracket, the 9.15% Ontario bracket, Ontario surtax and the gradual reduction of the federal age amount at this income. The recovery tax adds another 15% in this example.
This illustrates how the two taxes can overlap; it is not a personal tax calculation. Taxable income and the income used for OAS recovery are not always identical. Deductions, credits, income type, province and individual circumstances can change the result.Review the current federal recovery-tax thresholds (opens in a new tab) for the income year that applies to you.
Related questions
A few useful follow-ups.
Can I start OAS before age 65?
No. OAS can begin at 65 or later if you qualify.
Do CPP and OAS have to start together?
No. They are separate programs and can begin at different times.
Is waiting always better?
No. A larger later payment must be weighed against income forgone during the delay and your own benefits, income and plans.
What if I may qualify for GIS?
Government guidance says there is no benefit to delaying OAS when eligible for GIS. Confirm your eligibility and household circumstances with Service Canada.
How does the OAS recovery tax, or clawback, affect my pension?
When net income is above the applicable threshold, some or all OAS may be repaid. Read What is the OAS recovery tax? and confirm the current threshold for the relevant income year.
Explore it in your plan
Update your OAS assumption in your plan.
Use an OAS estimate you have checked and explore timing alongside CPP, pensions, spending and savings. The illustration will not choose a start age for you.
Official sources
These sources were reviewed July 29, 2026. Program rules and tax treatment can change; confirm the information that applies when acting.
- Service Canada: When to start OAS (opens in a new tab)
- Service Canada: OAS eligibility (opens in a new tab)
- Government of Canada: OAS recovery tax (opens in a new tab)
- CRA: 2025 federal and Ontario tax rates (opens in a new tab)
- CRA: 2025 age amount (opens in a new tab)
Retired Kevin is not affiliated with or endorsed by these organizations.