As of July 2013, you can defer receiving your Old Age Security (OAS) pension for up to 60 months (five years) after the date you become eligible for an OAS pension in exchange for a higher monthly amount. If you delay receiving your OAS pension, your monthly pension payment will be increased by 0.6 percent for every month you delay receiving it, up to a maximum of 36 percent at age 70.
Deferring your old age pension for one year:
Michael turned 65 in July 2013. If he decides to delay receiving his OAS pension for one year, his monthly amount will increase by 7.2% (0.6% x 12 months) to account for the 12-month deferral period from August 2013 to July 2014.
If Michael’s entitlement is $549.89 per month, his increased monthly payment would be $589.48.
Deferring for five years:
Rita will be turning 65 in December 2013. If she decides to delay receiving her OAS pension for the maximum deferral period of 60 months, her monthly amount will increase by 36% at age 70 (0.6% x 60 months).
If Rita’s entitlement is $549.89 per month, her increased monthly payment would be $747.85.
Would deferring your pension benefit you? Contact us today to learn more.