CPP/OAS Timing: When to Take Benefits and What to Consider

The best timing depends on personal factors like your income needs, health, taxes, and whether you are coordinating benefits with a spouse. A simple checklist can help you weigh the trade-offs without feeling overwhelmed.

If you are unsure which option fits your plan, a quick review can bring clarity and help you feel confident about the decision.

CPP and OAS timing is a retirement decision about when to start benefits so they support your income plan. Many Canadians choose between starting earlier for immediate income or delaying for a larger monthly amount later.

There is no single best answer for when to take CPP and OAS. The right timing depends on your retirement income, tax situation, health, life expectancy, other sources of income, retirement savings, spouse or common law partner planning, and whether you need money early or can afford to wait.

TLDR: CPP and OAS timing

The main question is simple: should you start collecting benefits as soon as you are eligible, or should you delay receiving them for a larger monthly benefit later?

Here are the key points:

1. You can start receiving CPP as early as age 60, at age 65, or delay as late as age 70.
2. Old Age Security OAS generally starts at age 65, but you may delay receiving OAS to age 70 for a larger monthly payment.
3. Starting early may help if you need income now, have health concerns, or want to preserve retirement savings.
4. Delaying CPP or delaying OAS may help if you expect a long life, have other sources of income, or want more guaranteed monthly income later.
5. Taxes matter because CPP benefits and OAS pension payments are taxable income.
6. Couples should coordinate decisions so CPP and OAS support the household plan, not just one person’s income.

The best decision is not always the one that gives the maximum monthly benefit. It is the one that fits your personal circumstances and your full retirement planning picture.

CPP and OAS basics

What is the Canada Pension Plan?

The Canada Pension Plan CPP is a government retirement pension funded through contributions made during your working years. If you qualify, the CPP retirement pension provides monthly benefit payments for life.

Your CPP payments depend on several factors, including how much and how long you contributed, the age you start CPP, and your earnings history. Many Canadians receive less than the maximum because the maximum CPP retirement pension usually requires a long contribution history at higher earnings levels.

You can collect CPP early, but starting early reduces the monthly payment. You can also delay CPP, and CPP increases for each month you wait after age 65, up to age 70.

What is Old Age Security?

Old Age Security is a government pension based mainly on age and how long you have lived in Canada after age 18. Unlike CPP, OAS benefits are not based on your work contributions.

The OAS pension can provide retirement benefits starting at age 65 if you qualify. You may also delay receiving OAS until age 70 for a larger monthly payment.

OAS payments are taxable income. Higher income retirees should also consider the OAS clawback, formally known as the OAS recovery tax. This can reduce OAS payments when income is above certain thresholds.

The key factors that affect timing

Income needs

If you need income to pay regular expenses, starting CPP or OAS earlier may make sense. Some people retire before age 65 and need cash flow before other benefits begin. Others have enough savings, investments, pension income, or part time work to wait.

The decision should start with your monthly spending needs. How much income do you need to cover housing, food, insurance, taxes, travel, family support, and health costs? Once you know the number, you can compare benefit timing options more clearly.

Health and life expectancy

Health is personal, and it matters. If you have serious health concerns or a shorter expected retirement period, taking money early may feel more appropriate. If you are in strong health and expect a long retirement, delaying CPP or delaying OAS may provide more lifetime income.

This is not just about math. It is also about comfort, family history, and quality of life.

Taxes

CPP and OAS create taxable income. If you are still working, have investment income, rental income, business income, or large registered account withdrawals, starting benefits may increase your tax bill.

For OAS, taxable income is especially important because of the OAS clawback. If your income is high enough, part or all of your OAS payments may be recovered through tax.

Good retirement planning looks at when income starts, how much taxable income you expect, and whether delaying benefits could reduce pressure in certain years.

Work status

If you are still working at age 60, 65, or later, timing becomes more complex. Starting CPP while still earning income can increase taxable income. Delaying may make sense if you do not need the money and want a higher monthly benefit later.

Some people start collecting CPP while working because they want the cash flow. Others delay because employment income already covers expenses.

Spouse or common law partner planning

Couples should not make CPP and OAS decisions in isolation. A spouse or common law partner may have a different pension, different retirement age, different health situation, or different savings level.

The household plan should consider both partners’ income, taxes, survivor needs, savings, investments, and expected retirement lifestyle.

Other sources of retirement income

CPP and OAS are only part of retirement income. You may also have workplace pension income, RRSP or RRIF withdrawals, TFSA withdrawals, non registered investments, business income, rental income, or other savings.

The best timing depends on how these sources work together. In some cases, using retirement savings first and delaying CPP or OAS may make sense. In other cases, starting benefits earlier may help preserve investments.

60 vs 65 vs 70 comparison

Age	Why people choose it	Trade offs to consider
Age 60 for CPP	They need income early, retire early, have health concerns, or want to reduce pressure on savings	The monthly benefit is lower for life, and payments add to taxable income
Age 65 for CPP and OAS	It feels like the standard starting point and may fit retirement timing	It may not be optimal if you are still working, have high taxable income, or can benefit from delay
Age 70 for CPP or OAS	They want a larger monthly payment and can use other sources of income while waiting	You give up payments in the earlier years and need confidence that the delay fits your health and cash flow
Mixed timing	One benefit starts earlier and another is delayed	Requires more planning, but may balance income needs, taxes, and guaranteed monthly income

This table is a starting point, not a rule. The right answer depends on your personal circumstances.

Simple scenarios

Scenario 1: Early retiree who needs income

Someone retires at age 60 and does not have a workplace pension. They have some retirement savings, but they are worried about spending down investments too quickly.

Starting CPP early may help provide immediate income. The trade off is a lower monthly benefit for life. This person should compare the value of money early against the long term benefit of delaying CPP.

Scenario 2: Still working at 65

A person reaches age 65 but continues working full time. Their income is already enough to cover expenses.

In this case, starting CPP and OAS right away may increase taxable income. Delaying could provide a larger monthly payment later and may reduce tax pressure while employment income is high.

Scenario 3: Strong health and long retirement horizon

Someone has good health, family longevity, and enough retirement savings to cover the early retirement years.

Delaying CPP or OAS may appeal because it can increase guaranteed monthly income later in life. This can be especially useful if the person wants more predictable income in their 70s, 80s, and beyond.

Scenario 4: Health concerns

A person has health concerns and wants to enjoy retirement while they can.

Starting CPP earlier may make sense emotionally and financially. OAS timing should still be reviewed because OAS cannot start as early as CPP. The key is to balance monthly income, expected lifetime benefits, and quality of life.

Scenario 5: Couple with different income levels

One spouse has a strong pension and the other has less retirement income. The couple should coordinate CPP and OAS with taxes, survivor planning, savings withdrawals, and household cash flow.

The goal is not for both people to choose the same start date. The goal is to make informed decisions that support the household.

Common mistakes to avoid

Choosing based on one headline

You may hear that everyone should take CPP early or everyone should delay until age 70. Neither statement is true for every person.

The best timing depends on your income, health, taxes, savings, and retirement goals.

Ignoring taxes

CPP and OAS are taxable income. Starting benefits at the wrong time can increase taxes or create OAS clawback concerns.

Review your tax situation before choosing a start date.

Forgetting about other income sources

CPP and OAS should be coordinated with pension income, investments, registered account withdrawals, and other sources of money.

A decision that looks good on its own may not fit the larger plan.

Taking money early without a spending plan

Some retirees start benefits early because they can, then spend the money without thinking about future needs.

Before starting, ask whether the benefit supports your retirement income plan or simply adds cash that may be spent quickly.

Delaying only to chase the maximum

A maximum OAS payment or larger CPP payment can sound attractive, but maximum does not always mean best. If delaying creates stress, forces unwanted investment withdrawals, or does not fit your health, it may not be the right choice.

Not planning as a couple

A spouse or common law partner decision can affect household taxes, cash flow, and survivor planning. Couples should review timing together.

CPP and OAS timing checklist

Before you decide, review these questions:

1. When do you plan to retire?
2. Do you need income before age 65?
3. Do you have enough retirement savings to delay?
4. What income will you have from pensions, investments, or work?
5. How is your health?
6. What is your family longevity history?
7. What is your expected taxable income each year?
8. Could OAS clawback apply?
9. Are you coordinating with a spouse or common law partner?
10. Do you want more income now or more guaranteed monthly income later?
11. Would delaying CPP help reduce retirement income risk later in life?
12. Would starting CPP early reduce stress today?
13. Do you know how to apply online or by paper application?
14. Have you received professional advice before making the decision?

A short checklist can help you move from guessing to planning.

How taxes affect CPP and OAS timing

Taxes can change the answer. CPP benefits and OAS payments are taxable income, so the timing of benefits affects your annual income.

If you start receiving benefits while still working, the payments may stack on top of employment income. If you also withdraw from registered accounts, sell investments, or receive pension income, your taxable income may be higher than expected.

OAS has an added concern. If your income is above the recovery tax threshold, your OAS pension may be reduced through the OAS clawback. This does not mean delaying OAS is always better, but it does mean you should review the tax impact.

A financial advisor can help compare options across several years. Sometimes the best choice becomes clearer when you map CPP, OAS, pensions, RRSP or RRIF withdrawals, TFSAs, and other income sources together.

Should you delay CPP?

Delaying CPP can provide a larger monthly payment later. It may be worth considering if you are healthy, expect a long retirement, have other income sources, and want more guaranteed monthly income in later years.

Delaying may also help protect against inflation and longevity risk because CPP benefits are indexed and payable for life.

However, delaying CPP is not right for everyone. If you need money early, have health concerns, lack savings, or feel uncomfortable drawing down investments while waiting, starting earlier may make sense.

Should you delay OAS?

Delaying OAS can increase your monthly payment later, up to age 70. This may help people who have enough income at age 65 and want higher benefit payments later.

Delaying OAS may also be worth reviewing if your taxable income is temporarily high at 65 due to work, business income, investment income, or other sources.

However, if you qualify for income tested benefits, have limited income, or need cash flow, delaying OAS may not be the best fit. Some new beneficiaries may be automatically enrolled, while others need to apply. It is important to read the notice you receive from the government and confirm your start date.

Applying for CPP and OAS

CPP and OAS are government benefits, but they do not always start automatically in the way people expect.

You may need to apply online through your government account or use a paper application. You should review your expected start date, confirm your personal information, and keep copies of any notices.

For OAS, eligibility generally depends on age, legal status, and how long you lived in Canada after age 18. For CPP, eligibility depends on contributions.

Do not wait until the last minute to understand the process. If retirement is approaching, review application timing in advance so benefit payments start when expected.

Next steps with Innova Wealth

Innova Wealth can help you review when to take CPP and OAS as part of your full retirement planning process. The goal is to help you make informed decisions that fit your income needs, tax situation, health, retirement savings, and family plans.

A timing review may include:

1. Your expected retirement date.
2. CPP and OAS estimates.
3. Pension income.
4. RRSP, RRIF, TFSA, and investment balances.
5. Expected retirement spending.
6. Taxable income projections.
7. OAS clawback considerations.
8. Spouse or common law partner planning.
9. Health and longevity assumptions.
10. Application timing and next steps.

You do not need to know the right answer before the conversation. Bring your benefit estimates, retirement income details, account statements, tax information, and questions. From there, Innova Wealth can help you compare options and choose the timing that fits your plan.

Frequently asked questions

When should I take CPP in Canada?

You can start receiving CPP as early as age 60, at age 65, or delay until age 70. The best time depends on your health, income needs, tax situation, savings, work status, and retirement goals.

When should I start OAS?

OAS generally starts at age 65, but you may delay receiving OAS until age 70 for a larger monthly payment. The right timing depends on your income, eligibility, taxes, and whether you need the money now.

Is taking CPP at 60 a good idea?

It can be a good idea for some people, especially if they need income, have health concerns, or want to reduce withdrawals from retirement savings. The trade off is a lower monthly payment for life.

What are the pros and cons of delaying CPP to 70?

The main advantage is a larger monthly payment later. The main trade off is that you give up payments between your earlier start age and age 70. Delaying may fit people with good health, other income sources, and a longer retirement horizon.

How do taxes affect CPP and OAS timing?

CPP and OAS are taxable income. Starting benefits while you have other income can increase your taxes. OAS may also be affected by the OAS clawback if income is above the threshold.

How should couples coordinate benefit timing?

Couples should review both partners’ income, pensions, savings, health, ages, and tax situation. One person may start earlier while the other delays. The right plan should support household income and long term security.

What information should I bring to a timing review?

Bring CPP and OAS estimates, pension statements, investment and retirement savings balances, tax returns, expected spending, health considerations, and details about your spouse or common law partner if applicable.

What is the average CPP payment?

The average CPP payment changes over time and depends on the population receiving benefits. Your personal CPP payment depends on your contribution history and start age, so it is better to review your own estimate rather than rely on the average CPP amount.

Can I receive CPP and OAS at the same time?

Yes, many Canadians receive CPP and OAS together in retirement. The timing can differ, since CPP can start earlier and OAS generally starts at age 65 or later.

Should I get professional advice before deciding?

Professional advice can be helpful because CPP and OAS timing affects retirement income, taxes, savings withdrawals, and long term planning. A financial advisor can help compare options before you commit.