What retirees need to know if they plan to defer Old Age Security benefits until 70
When retiring, deciding when to start the Old Age Pension Plan and Canada Pension Plan are two considerations. The decision mainly rests on a person’s individual preference and should be dependent on their circumstances. There are factors that may influence when is the right time to begin if deciding to put it off until 70 years old. One must consider their health, and if they have any ailments that would cause them to rethink how soon they need to apply for the retirement programs. Lastly, the lump-sum payment 12 months prior to death payable to their estate as noted in the OAS act may also be something to think about and plan for.
“At 65, the current maximum monthly OAS pension is $600.85 or $7,210.20 per year. Wait until 70 and OAS pays $817.16 per month or $9,805.87 a year, plus any inflation increases.”