Insights · Retirement

When to take CPP and OAS — the math most Canadians get wrong

Foundry Wealth · 6 min read

Most people start CPP and OAS at 65 because that's the number everyone says. But 65 is just the default — and for a lot of Canadians it leaves real money on the table.

What delaying actually does

You can start CPP any time between 60 and 70. Take it before 65 and it shrinks by about 0.6% for every month early — up to roughly 36% less at 60. Wait past 65 and it grows about 0.7% per month — up to roughly 42% more at 70. OAS works similarly from 65 to 70: about 0.6% more per month, up to roughly 36% more at 70.

Crucially, both are indexed to inflation and paid for life. Delaying doesn't just give you a bigger cheque — it gives you a bigger inflation-protected cheque that lasts as long as you do. There is no private annuity in Canada that buys lifetime, indexed income as cheaply as simply waiting.

The break-even most people miss

The common objection is "but what if I don't live long enough to come out ahead?" The break-even age for delaying is typically in the early-to-mid 80s. Here's the part people get wrong: the real risk in retirement usually isn't dying early — it's living a long time and running low on money. Delaying CPP/OAS is, in effect, cheap insurance against your own longevity. If you die early, you had plenty along the way; if you live to 95, the larger indexed cheque is exactly what protects you.

When taking it early does make sense

Delaying isn't automatically right. Starting earlier can be the better call if you:

Have a health condition or family history that points to a shorter horizon.
Need the income now and would otherwise take on debt or sell investments at a bad time.
Could qualify for the Guaranteed Income Supplement (GIS), where the interaction with other income gets complicated.
Want to draw CPP/OAS so you can leave registered money to keep growing — though often the reverse (spend registered first, delay government benefits) is more tax-efficient.

It's really a tax-and-drawdown question

The timing of CPP and OAS doesn't live in a vacuum — it interacts with your RRSP/RRIF withdrawals, the OAS clawback (which starts once income passes roughly $90,000), and your overall tax bracket each year. The "right" age is the one that fits the whole drawdown plan, not a rule of thumb. Run it as part of the full picture and the answer is often "delay, and bridge the gap by spending other savings first" — but only the math for your situation can say for sure.

Wondering what the math says for you? We'll model it as part of your plan →

General information for Canadians, not individual financial or tax advice. Figures are approximate, based on current rules, and change over time. Confirm specifics with Service Canada or a qualified planner.