When should you start CPP and OAS?

This one decision can be worth tens of thousands of dollars over a retirement, and most people make it on a gut feeling ("take it before the government keeps it"). It deserves a few minutes of real thought, because the math rewards patience more than people expect.

How CPP timing works

You can start the Canada Pension Plan any time between 60 and 70. Start early at 60 and your monthly payment is reduced by about 36% compared with starting at 65. Wait until 70 and it is roughly 42% higher than at 65. That is a large, permanent difference, and it is indexed to inflation for life. Waiting is essentially buying yourself a bigger, guaranteed, inflation-protected pension.

How OAS works, and the clawback to watch

Old Age Security normally starts at 65, and you can also defer it to as late as 70 for roughly 36% more. OAS has one trap worth knowing: if your income in retirement climbs above a threshold (in the low $90,000s for 2025), part of your OAS gets clawed back. Managing your taxable income, which ties back to your withdrawal order, is how you keep more of it.

The questions that actually decide it

How is your health and family longevity? Delaying wins if you live into your 80s and beyond, which most healthy 65 year olds now do. If your health is poor or longevity does not run in your family, taking it earlier can make sense.

Do you need the income now, or do you have savings to bridge? A powerful move for those who can afford it: spend down some RRSP or savings in your early 60s and delay CPP to 70. You essentially trade a chunk of your own savings for a much larger government pension you cannot outlive.

Are you still working? If you are earning a good income in your early 60s, starting CPP then just adds taxable income on top. Waiting is often cleaner.

The honest default

For a healthy Calgarian with some savings to bridge the gap, delaying CPP, often to 70, is the quietly powerful choice, because it turns market risk into a guaranteed raise you cannot outlive. It is not right for everyone, but it is the option most people dismiss too quickly. Model how the timing changes your picture in the freedom number tool, remembering that it deliberately leaves CPP and OAS out, so your real date is usually earlier than it shows.