CPP & OAS in 2026: How Much Will You Receive and When to Start?

Senior couple reviewing retirement income documents and financial plan at home

When you start CPP can mean over $100,000 difference in lifetime income

Canada Pension Plan (CPP) and Old Age Security (OAS) are the two pillars of Canada's public retirement income system. Together they can provide over $32,000 per year for a single person — but the timing of when you start collecting dramatically affects your lifetime income. Getting this decision right can be worth over $100,000.

$15,300

Max CPP at 65 in 2026

$8,470

Max OAS at 65 in 2026

42%

Increase in CPP by waiting from 65 to 70

CPP Benefit by Start Age (2026)

Start Age	Adjustment	Max Monthly	Max Annual
60 (earliest)	-36%	$817	$9,804
62	-21.6%	$957	$11,484
65 (standard)	—	$1,275	$15,300
67	+16.8%	$1,489	$17,868
70 (latest)	+42%	$1,810	$21,720

The Breakeven Analysis

Compare	Monthly Difference	Breakeven Age
Start at 60 vs 65	$458/month less at 60	~Age 74
Start at 65 vs 70	$535/month more at 70	~Age 83
Start at 60 vs 70	$993/month less at 60	~Age 79

If you live past 83, delaying CPP to 70 was the optimal financial decision. The average Canadian life expectancy is approximately 83–85 years.

Old Age Security (OAS) in 2026

Age 65–74: ~$707/month maximum
Age 75+: ~$778/month (10% automatic increase at 75, introduced 2022)
Indexed to CPI quarterly

OAS Clawback Thresholds (2026)

Net Income	OAS Impact
Below ~$90,997	Full OAS received
$90,997 – $148,179	Clawback at $0.15 per dollar over threshold
Above ~$148,179	OAS fully eliminated

General Guidance on Timing

Take CPP early (60–64) if you have health concerns or need the income immediately
Take CPP at 65 (default) if you are uncertain and have adequate savings to bridge gaps
Delay CPP to 70 if you are healthy, have significant savings, and expect longevity
Delay OAS to 70 if you can bridge 65–70 from savings — deferral gives a guaranteed 7.2% annual increase

Portfolio Draw-Down Consideration

Delaying CPP means drawing more from your RRSP/TFSA in the interim, reducing their compounding power. For investors with substantial savings, the opportunity cost of drawing down a portfolio to defer CPP may tip the decision toward earlier collection. Run the numbers with your actual portfolio size.

Estimate Your CPP & OAS Benefits

Model different start ages to see your estimated lifetime benefit

Open CPP/OAS Estimator →

Frequently Asked Questions

Yes. You can start CPP as early as age 60 while continuing to work. If you are under 65 and working while collecting CPP, you must continue making CPP contributions. These additional contributions earn you Post-Retirement Benefits (PRBs), which increase your CPP pension. After age 65, contributions are optional.

Log in to Service Canada My Account online. You will find your Statement of Contributions (showing every year of CPP premiums paid) and an estimated benefit projection at ages 60, 65, and 70 based on your actual earnings history. This is far more accurate than any calculator estimate.

Yes. Both CPP and OAS are fully taxable as income in the year received. They are included in your net income for OAS clawback calculation purposes. Tax-efficient retirement planning often involves drawing CPP/OAS alongside TFSA withdrawals (tax-free) to minimize overall tax. Pension splitting with a spouse is also available for CPP.

⚠️ CPP and OAS benefit amounts are indexed annually and subject to legislative change. This article reflects rules as of January 2026. Consult a certified financial planner or Service Canada before making CPP/OAS timing decisions.