Retirement · 2026 rules

CPP and OAS timing

Taking CPP before 65 costs 0.6% a month permanently; deferring past 65 adds 0.7% a month. The decision is irreversible after a year, so it is worth knowing where the cumulative lines actually cross.

  • 0.6% / 0.7% per month
  • Cumulative payout crossover
  • Combined with OAS
Your numberslive
$
age 65
age 60age 65age 70
age 65
age 65age 67age 70
Context
age 88
age 75age 85age 90age 95
$
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Monthly income from CPP and OAS at 65
$2,168
$1,433 CPP starting at 65 plus $735 OAS starting at 65
Taking CPP at 65 sets your payment at 100.0% of the age-65 amount, for life.
CPP annually
$17,196
OAS after clawback
$8,819
No clawback at this income
Best start age to 88
70
$557,728 of cumulative CPP

Cumulative CPP by start age

Total CPP received to date, for a start at 60, 65 and 70
$0$213,769$427,537$641,306$855,0746065707580859095AgeStart at 60Start at 65Start at 70
  • Start at 60
  • Start at 65
  • Start at 70
Age 65 overtakes age 60Before this age, starting early is ahead in total dollarsAge 75
Age 70 overtakes age 65After this age, deferral keeps widening the gapAge 84

Monthly amount by start age

Monthly CPP at each possible start age
$0$509$1,017$1,526$2,0356061626364656667686970

Total received by your planning age

Starting at 60$917 a month$426,926
Starting at 65$1,433 a month$523,134
Starting at 70$2,035 a month$557,728
What the break-even chart cannot tell youIt assumes you live to the crossover. Deferral is best understood as longevity insurance: an indexed, government-backed income you cannot outlive, which is worth more than its expected value to most households.
How this is calculated

CPP is reduced 0.6% for each month before 65 — 36% at age 60 — and increased 0.7% for each month after, to 42% at 70. OAS increases 0.6% a month if deferred, to 36% at 70.

Cumulative figures index payments at 2% a year in nominal mode, approximating consumer-price indexation. In today’s-dollars mode there is no indexation, which slightly favours earlier start ages.

The clawback test applies 15.0% to net world income above $95,300. CPP counts toward that income; a TFSA withdrawal does not.

These results are illustrative estimates based on published 2026 rates and typical lender rules. They are not financial, tax, or legal advice, and they are not a mortgage or credit approval. See the methodology and disclaimer.

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