When Should I Start CPP and OAS?
Deciding when to start your Canada Pension Plan (CPP) and Old Age Security (OAS) is one of the most consequential retirement decisions you'll make — and it's rarely as simple as "take it as early as you can." The timing you choose can quietly add or subtract tens of thousands of dollars from your lifetime income, and it interacts directly with your tax bracket, your other income sources, and how your estate is taxed.
Watch: When should I start CPP and OAS?
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Taivi Tayler, CFP®, CLU®, explains how CPP and OAS timing affects your lifetime income and tax.
Taivi Tayler, CFP®, CLU®, explains how CPP and OAS timing affects your lifetime income and tax.
Why timing matters more than most people think
CPP can begin anywhere from age 60 to 70, and each year you delay past 65 increases your monthly payment — but the decision isn't made in isolation. It interacts with your RRIF withdrawals, your investment income, and whether OAS clawback applies. OAS, which generally starts at 65, can be clawed back if your net income exceeds a threshold, so starting CPP and OAS in the same year you take large RRIF withdrawals can push you into a higher tax bracket and trigger avoidable tax.
How this affects you (or your parent)
If you started CPP early without modeling the long-term impact, you may be leaving guaranteed, inflation-indexed income on the table. If you haven't started yet, the choice of year and month deserves real projections — not a rule of thumb. For families helping a parent, this is often the first place we find meaningful, recoverable income.
Where plans go wrong, and what to do
Taking CPP at 60 without modeling lifetime income
Run a break-even projection comparing early vs. delayed CPP against your other income sources and longevity.
Starting OAS in a high-income year
Coordinate OAS start date with RRIF withdrawals to avoid the clawback threshold.
Ignoring the tax interaction between CPP, OAS and RRIF
Build a multi-year income plan so benefits, withdrawals and investment income layer tax-efficiently.
No plan for survivor benefits
Understand how CPP survivor benefits combine with your own CPP, and what your spouse keeps if one of you passes.
This is exactly what the check-up covers.
In about 3 minutes you'll see where this issue sits in your own plan — then book a free review with Taivi to talk it through.
Or call Taivi directly: 1-866-550-6932