# OAS deferral: how delaying Old Age Security to 70 raises your pension

Source: https://canadapaymentdates.com/oas-gis/oas-deferral
Publisher: Canada Payment Dates (canadapaymentdates.com), independent editorial site
Topic: OAS and GIS
Last updated: 2026-10-13

> OAS deferral lets you start Old Age Security any time between 65 and 70. Each month you delay adds 0.6%, or 7.2% a year, up to 36% more at 70. At October to December 2026 rates that means up to $1,037.00 a month instead of $762.50. You cannot get the GIS while you defer, so deferral mainly suits people with other income.

## Key facts

- Increase per month of delay: 0.6% (7.2% a year)
- Maximum increase: 36% at age 70
- Maximum at 70, October to December 2026 rates: $1,037.00 a month
- GIS while deferring: Not payable
- Change of mind after payments start: Written request within 6 months of the first payment

## How OAS deferral works

OAS deferral means choosing a start date later than the month after your 65th birthday. The earliest you can start OAS is 65 and the latest that earns a bonus is 70. For each month between 65 and your chosen start, your pension goes up by 0.6%, and the increase is permanent for life.

Unlike CPP, there is no reduction for starting early, because OAS cannot start before 65. The decision is only whether to take it at 65 or wait for a larger amount. Once you reach 70, waiting longer gains nothing, so anyone over 70 who has not applied should apply right away.

## OAS deferral to age 70: worked example with October 2026 rates

Service Canada publishes the effect of deferral using the current maximum. The table below uses the October to December 2026 figures, so each amount will rise with future indexation.

| Start age | Months deferred | Increase | Maximum monthly OAS |
| --- | --- | --- | --- |
| 65 | 0 | None | $762.50 |
| 66 | 12 | 7.2% | $817.40 |
| 67 | 24 | 14.4% | $872.30 |
| 68 | 36 | 21.6% | $927.20 |
| 69 | 48 | 28.8% | $982.10 |
| 70 | 60 | 36% | $1,037.00 |

Maximum monthly OAS by start age, October to December 2026 rates (Service Canada)

### A simple OAS deferral calculator: the break-even point

Waiting from 65 to 70 means giving up 60 payments. At $762.50 a month, that is $45,750.00 not received. The reward is $274.50 more every month from 70 on. Dividing the first figure by the second gives about 167 months, or roughly 13 years and 11 months, so the deferred pension catches up at around age 84.

This is a simplified calculation of ours that ignores inflation, income tax, the clawback and investment returns on money received earlier. It still shows the core trade: deferral pays off if you live well past your mid-80s, and costs you if you do not.

## Can I get GIS while deferring OAS?

No. The Guaranteed Income Supplement is paid only to people who are receiving the OAS pension. If you defer OAS, you also give up any GIS for those months, and your spouse or common-law partner cannot apply for the Allowance based on you.

Deferral also does not raise GIS or the Allowance later. The 0.6% monthly increase applies only to the OAS pension. For this reason Service Canada says there is no benefit in waiting if you are eligible for GIS. A single senior eligible for the full $1,138.90 maximum would lose far more by waiting than deferral could ever return. See the [GIS amount](https://canadapaymentdates.com/oas-gis/gis-amount) page to check whether you are likely to qualify.

## Who might defer OAS, and who should not

Deferral tends to suit people who are still working in their late 60s. If your income is above the clawback threshold, $93,454 for 2025 income, some or all of the pension would be recovered anyway. Delaying lets you skip years of reduced payments and collect a larger pension once your income drops. The [OAS clawback](https://canadapaymentdates.com/oas-gis/oas-clawback) page and the [clawback threshold](https://canadapaymentdates.com/oas-gis/oas-clawback-threshold) page show how much you would lose at your income.

People with fewer than 40 years in Canada after 18 have an extra reason to consider waiting. Years lived in Canada after your pension starts do not count, but years before the start date do, so delaying can raise both your residence fraction and your deferral percentage. Someone living abroad with fewer than 20 years of residence, in a country without a social security agreement, gains nothing by waiting.

## How to defer OAS

Most people are enrolled automatically and get a letter around their 64th birthday. If you do nothing, payments start the month after you turn 65. To defer, you must tell Service Canada before that happens.

1. Sign in to My Service Canada Account. You can use it if you are at least one month past your 64th birthday and not yet receiving OAS.
2. Open the Old Age Security section, choose Profile, and under the heading for changes select the option to delay receiving your OAS and GIS pension.
3. Pick the month you want payments to start.
4. If you cannot use the online service, complete form ISP-3550, Application for the Old Age Security Pension and the Guaranteed Income Supplement, and write your chosen start date. Applications from outside Canada must be on paper.
5. When you are ready to start, apply if you delayed without completing an application. If you already chose a date and want to change it, contact Service Canada.

> **No back pay for the deferral period:** If you apply after 65, Service Canada can backdate payments up to 11 months from the date it receives your application. But if you chose to delay OAS, you cannot collect retroactive payments for the months you deferred. You get the higher rate instead.

## Changing your mind after OAS has started

If payments have already begun and you decide you would rather defer, you can cancel. Service Canada requires a written request within 6 months of your first payment. If it is approved, you must repay everything received within the next 6 months, and you can reapply later for a higher pension.

Service Canada's own example shows how partial backdating works. A person eligible in August delays, applies in December of the next year, and asks for payments from October. The pension is increased by 8.4%, reflecting 14 months of deferral, and the extra 0.6% does not apply to the backdated months.

Deferral and the automatic 10% increase at 75 are separate. The [OAS at 75](https://canadapaymentdates.com/oas-gis/oas-at-75) page covers that later raise, and the [OAS payment dates](https://canadapaymentdates.com/oas-gis) page shows when your first payment would land.

## Common questions

### How much more do I get if I defer OAS by one year?

Deferring 12 months adds 7.2%. At the October to December 2026 maximum, that raises the pension from $762.50 to $817.40 a month.

### Is it worth deferring OAS to 70?

It depends on health, other income and GIS eligibility. Using October 2026 rates, the larger pension at 70 takes until about age 84 to make up for five years of missed payments, before tax and inflation.

### Can I defer OAS but take CPP at 65?

Yes. The two pensions have separate start-date choices, so you can start CPP and delay OAS, or the reverse.

### Do I have to tell Service Canada if I want to defer OAS?

Yes. If you were enrolled automatically and do nothing, payments begin the month after you turn 65. You must choose a later start date online or on form ISP-3550.

### Does deferring OAS affect my spouse?

It can. While you are not receiving OAS, a spouse or partner aged 60 to 64 cannot get the Allowance based on your pension.

## Sources

- [When to start your Old Age Security pension](https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/when-start.html)
- [Apply, delay, or change your OAS start date](https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/apply.html)
- [Receiving your Old Age Security pension](https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/while-receiving.html)
- [Old Age Security payment amounts, ESDC](https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/payments.html)