This page is the numerical OAS deferral comparison: starting at 65 versus delaying to 70. Delaying raises the monthly pension by 0.6% per month (up to 36% at 70), but you receive no OAS during the gap. For the broader decision framework, use When Should I Take OAS?
OAS amounts at 65 vs 70 (official maximum reference)
Service Canada increases OAS by 0.6% for each month after age 65 (7.2% per year), up to 36% at age 70. The increase applies to your entitlement, then follows usual OAS indexing.
| OAS at 65 | OAS at 70 | |
|---|---|---|
| Payments begin | Age 65 | Age 70 |
| Deferral adjustment | None | +36% (0.6%/mo × 60) |
| Illustrative monthly (official max) | $751.97 | $1,022.68 |
| Approx. annual once in pay (official max) | $9,024 | $12,272 |
| Years of OAS from 65 to 70 | Five years of payments | No OAS during those five years |
Using that maximum reference, a full five-year deferral illustrates about $3,249 more per year once payments start-after five years without OAS. Your residency-based entitlement may be lower. RetireIQ's planner uses its own default OAS modelling amount, separate from this official maximum.
Income needed to bridge 65-70
Delaying OAS does not reduce spending. Common bridges: employment, CPP, workplace pensions, RRSP/RRIF withdrawals, TFSA withdrawals, and non-registered savings. RRSP/RRIF bridges raise taxable income in the gap; TFSA bridges generally do not. See RRSP vs TFSA withdrawal order.
Recovery tax, GIS, and age-75 interaction
OAS is taxable at either start age. For the 2026 OAS recovery-tax threshold, RetireIQ's planning configuration uses a threshold of $90,997 and a recovery rate of 15%. RetireIQ's active tax-year configuration uses this recovery-tax threshold for planning. Canada.ca publishes recovery thresholds by income year and payment period, which can differ. Delaying does not remove recovery tax; it can change which years OAS sits beside other taxable amounts.
GIS can make delay unattractive for lower-income retirees-confirm with Service Canada. The higher OAS maximum from age 75 is separate from the 65-70 deferral. In the same reference period, Canada.ca lists about $827.17/month for ages 75+ (maximum reference). Delaying to 70 does not cancel the age-75 increase once you qualify.
Compare OAS at 65 versus 70 in RetireIQ
- Enter your expected OAS entitlement (not only the published maximum).
- Set the accounts you would use between 65 and 70.
- Run OAS at 65 versus 70 (or ages in between).
- Compare withdrawals, taxes, and funding to your planning age.
Compare OAS at 65 versus 70 with your numbers. Return to the OAS timing decision framework for eligibility, GIS, and household factors. CPP delay is a separate numerical question-see CPP at 65 vs 70.
Frequently asked questions
How much does OAS increase if I delay it to 70?
Service Canada increases OAS by 0.6% for each month you delay after age 65, up to 36% at age 70.
Can I delay OAS to age 70?
Yes. Age 70 is the latest start age that still increases the monthly OAS pension under the published deferral rules.
Is delayed OAS taxable?
Yes. OAS is taxable income whether you start at 65 or later. Delaying changes when that taxable income appears, not whether it is taxable.
Does delaying OAS remove the clawback?
No. Delaying can change which years OAS income appears beside other taxable amounts. Recovery tax still depends on your income level under CRA and Service Canada rules.
Do I receive the age-75 OAS increase if I delay to 70?
Yes. The higher OAS maximum for ages 75+ is separate from deferring between 65 and 70. If you delay to 70, you can still receive the age-75 increase once you qualify under Service Canada rules.
Sources
Disclaimer. RetireIQ provides educational retirement planning tools and illustrative projections. Results depend on the assumptions and information entered and are not financial, investment, tax, or legal advice. Government benefits, tax rules, investment returns, and other assumptions can change. Consider obtaining professional advice for decisions specific to your circumstances.