catax.tools

CPP & OAS Start Age Calculator

Should you take CPP early at 60, on time at 65, or delay to 70? Compare monthly benefits, cumulative totals, and breakeven ages to find the optimal start age for your situation.

01INPUTS

Your Benefit Details

90

Find your CPP estimate at 65 in your My Service Canada Account. Average Canadian life expectancy is ~82-84.

02RESULTS

CPP Start Age Analysis

CPP Monthly Benefit by Start Age

Start AgeMonthlyAnnualAdjustment
60$640$7,680-36.0%
61$712$8,544-28.8%
62$784$9,408-21.6%
63$856$10,272-14.4%
64$928$11,136-7.2%
65(standard)$1,000$12,000Standard
66$1,084$13,008+8.4%
67$1,168$14,016+16.8%
68$1,252$15,024+25.2%
69$1,336$16,032+33.6%
70$1,420$17,040+42.0%

Cumulative CPP by Age

Start at 60 vs 65

Age 74

breakeven age

+$69,600 by age 90

Start at 65 vs 70

Age 82

breakeven age

+$40,800 by age 90

Start at 60 vs 70

Age 79

breakeven age

+$110,400 by age 90

OAS Start Age Analysis

OAS Monthly Benefit by Start Age

Start AgeMonthlyAnnualAdjustment
65(standard)$752$9,024Standard
66$806$9,673+7.2%
67$860$10,323+14.4%
68$914$10,973+21.6%
69$969$11,622+28.8%
70$1,023$12,272+36.0%

Cumulative OAS by Age

OAS: Start at 65 vs 70

Age 84

breakeven age

+$19,852 by age 90

03BREAKDOWN

Recommendation

Based on planning to age 90:

Best CPP Start Age

70

$340,800 total by age 90

Best OAS Start Age

70

$245,443 total by age 90

The longer you expect to live, the more delaying benefits you. This analysis is based on total dollars received — it does not account for investment returns, inflation, tax differences, or health considerations. Consult a financial advisor for personalized advice.

Share

How it works: CPP can be taken as early as age 60 (reduced 0.6%/month) or deferred to age 70 (increased 0.7%/month). OAS can be deferred from 65 to 70 (increased 0.6%/month). The breakeven age is when delaying first pays off in total cumulative dollars. These calculations assume constant benefit amounts without inflation indexing.

Understanding CPP & OAS Timing

CPP Early Reduction (age 60-64): Your benefit is permanently reduced by 0.6% for each month before 65. Taking CPP at 60 means a 36% reduction — but you collect for 5 extra years. This may be better if you need the income now or have health concerns.

CPP Late Increase (age 65-70): Your benefit permanently increases by 0.7% per month past 65 — up to 42% more at 70. Delaying pays off if you live long enough for the higher payments to exceed what you would have collected starting earlier.

OAS Deferral (age 65-70): OAS increases by 0.6% per month deferred, up to 36% at age 70. Unlike CPP, OAS cannot be taken before 65. Deferring also avoids the OAS clawback during high-income working years.

Key factors beyond breakeven: Health status, other income sources, tax bracket in retirement, marital status (survivor benefits), and whether you need the income immediately all affect the optimal start age.

Related retirement tools

Related Calculators

Frequently asked questions

When is the best age to start CPP?

It depends on how long you live. If you live past approximately age 74, starting CPP at 65 beats starting at 60. If you live past age 82, starting at 70 beats starting at 65. The breakeven ages shift slightly based on your personal benefit amount.

How much does CPP decrease if I take it at 60?

CPP is reduced by 0.6% for each month you take it before age 65 — that's 7.2% per year. At age 60, the maximum reduction is 36%, so you would receive 64% of your age-65 benefit for life.

How much does CPP increase if I wait until 70?

CPP increases by 0.7% for each month you delay past 65 — that's 8.4% per year. At age 70, the maximum increase is 42%, so you would receive 142% of your age-65 benefit for life. There is no additional benefit for delaying past 70.

Can I defer OAS past 65?

Yes. OAS increases by 0.6% for each month you defer past 65, up to age 70 — a maximum increase of 36%. Unlike CPP, OAS cannot be taken before age 65.

What is a breakeven age?

The breakeven age is when the total cumulative payments from a later start date first exceed those from an earlier start date. Before breakeven, the early starter is ahead because they collected more months. After breakeven, the late starter is ahead because their higher monthly payment has more than compensated for the shorter collection period.

Sources

Related Calculators

Most searched navigate · open