Seniors Have Option to Defer OAS Pensions for Up to Five Years

Seniors have the option to defer starting their OAS pensions for up to five years (i.e. starting at age 70 rather than 65). 

Beginning July 1, 2013, seniors will receive an increase of 0.6% for each year that they delay receipt of their pension (to a maximum increase of 36%). Assuming they are entitled to a pension of $550 in July 2013, they could receive a pension of $748 (adjusted for inflation) if they wait until they turn 70 in July 2018.

Choosing to delay OAS will result in a lifetime increase in benefits if the taxpayer lives for at least 14 years after beginning to receive their pension. High-income pensioners whose OAS would be fully clawed back should delay receipt as long as possible since there is no benefit from receiving benefits that are fully clawed back.