For most healthy retirees in Durham Region and Northumberland County who have other income to live on, deferring CPP past 65 — and often OAS as well — produces more lifetime income and a larger indexed paycheque in the years when it matters most. For retirees with health concerns, no other income, or a Guaranteed Income Supplement entitlement, starting earlier is usually right. The decision is personal, it is permanent, and it deserves more than the default.
Here are the 2026 numbers, the break-even math and the five questions we walk through with clients from Bowmanville to Port Hope.
The 2026 amounts, at each age
Using July–September 2026 figures published on Canada.ca:
| Benefit | Start at 60 | Start at 65 | Start at 70 |
|---|---|---|---|
| CPP — maximum new pension | $964.90 / month (−36%) | $1,507.65 / month | $2,140.86 / month (+42%) |
| CPP — average new pension | ≈ $561 / month (−36%) | $877.01 / month | ≈ $1,245 / month (+42%) |
| OAS — age 65 to 74 | Not available | $751.97 / month | $1,022.68 / month (+36%) |
| OAS — age 75 and over | — | $827.17 / month | Increases at 75 also apply to the deferred amount |
CPP is reduced by 0.6 percent for every month it is taken before 65 and increased by 0.7 percent for every month it is deferred after 65, to a maximum at 70. OAS cannot be started before 65 and increases by 0.6 percent per month of deferral, also to a maximum at 70. Both are indexed to inflation for life, and the increase for deferring is applied to an amount that has itself been indexed while you waited.
Break-even ages, in plain terms
The simplest way to think about deferral is to ask: if I wait, how old will I be when the larger cheques have caught up with the smaller ones I gave up? Ignoring investment returns on the early payments and using the 2026 maximums:
| Decision | Income forgone by waiting | Extra income each month for waiting | Approximate break-even age |
|---|---|---|---|
| CPP at 60 vs 65 | ≈ $57,900 over five years | $542.75 | About 74 |
| CPP at 65 vs 70 | ≈ $90,500 over five years | $633.21 | About 82 |
| OAS at 65 vs 70 | ≈ $45,100 over five years | $270.71 | About 84 |
Now set those against how long Canadians actually live. According to Statistics Canada, a Canadian who reaches 65 can expect, on average, another 19.4 years if male and another 22.2 years if female (2022–2024 figures, national) — to roughly 84 and 87. Half of us live longer than that. If you are healthy at 65 and your parents lived into their late 80s, the break-even ages above are not a hurdle. They are the middle of the distribution.
The break-even math is a starting point, not the answer. Investment returns on early payments, taxes, and whether you would otherwise be drawing down savings all shift it. That is what the five questions below are for.
The five questions that decide it
1. Do you have income to live on between 60 and 70?
This is the whole question in disguise. A Darlington or Lakeridge retiree with a defined benefit pension and a bridge benefit to 65 has income to live on and can usually afford to defer. A Whitby professional still working at 66 has income and should almost always defer. A self-employed Port Hope tradesperson with $300,000 in RRSPs and nothing else may need to start CPP at 60 or 65 simply to eat — and that is a legitimate reason, provided the plan has looked at the alternative of drawing the RRSP first and deferring CPP instead.
2. What does your health, and your family history, say?
If you have a serious health condition or a family history that makes living past 80 unlikely, take CPP early. There is no prize for deferring a benefit you may not collect. Conversely, the risk retirees most underestimate is not dying young; it is living to 92 with a portfolio that ran out at 85. Deferred CPP and OAS are the best insurance available against that outcome, because they are indexed and they never stop.
3. Are you eligible for the Guaranteed Income Supplement?
For a single senior with income under $22,800, GIS can add up to $1,123.17 a month in 2026, according to Canada.ca — but you must be receiving OAS to receive GIS. Deferring OAS to 70 forfeits five years of GIS. For lower-income retirees, the usual sequence flips: take OAS at 65, take CPP at 65 or earlier, and draw RRSP money down before 65 so it does not reduce GIS later. This is one of the few situations where taking benefits early is clearly right.
4. Where does your income sit relative to the OAS recovery threshold?
OAS is reduced by 15 cents for every dollar of net income above $95,323 for 2026, according to the CRA. If you are still working or drawing a large pension between 65 and 70 and would lose much of your OAS anyway, deferring it to 70 — when income is typically lower — is close to free money. The reverse also applies: if deferring CPP means larger RRIF withdrawals that push you over the threshold, the math changes.
5. Would deferring mean selling investments in a bad market?
If deferring CPP means drawing $1,500 a month from a portfolio, and the portfolio falls 20 percent in your first year of retirement, you are selling low to fund a wait. A well-built plan sets aside two to three years of withdrawals in short-term holdings before retirement so that the CPP decision can be made on its merits rather than on the market’s mood. If that buffer does not exist, the case for deferring is weaker.
Three things people get wrong about CPP
- “Zero-earning years after 60 will lower my CPP if I wait.” They can, but the general drop-out provision already excludes your lowest 17 percent of earning years, and years after 65 with low or no earnings can also be dropped. For most people with a 35-year work history the effect is small; your CPP Statement of Contributions from My Service Canada Account shows the real figure at each age.
- “I should take CPP at 60 and invest it.” To match a guaranteed, indexed 7.2 percent-per-year increase for deferring to 65 — and 8.4 percent per year from 65 to 70 — an investor has to earn that return after tax, every year, with no bad years. Some do. Most do not.
- “CPP and OAS are the same decision.” They are not. OAS depends only on residency and income; CPP depends on your contribution history. It is common to defer one and take the other.
Putting it together: a Bowmanville example
A couple, both 63, in Bowmanville. He retires from OPG in 2027 with a pension and a bridge to 65; she is a school board employee with an OMERS pension and will retire at 64. Both are in good health.
Our usual recommendation in this situation: let the bridges carry them to 65, draw modestly from RRSPs in the low-income years between retirement and 65 to lower the RRIF minimums later, take OAS at 65 or 67 depending on where their income sits relative to the recovery threshold, and defer CPP to 70 for both. The result is roughly $1,200 to $1,500 a month more of indexed lifetime income at 70 than the default, at the cost of drawing more from savings in their late 60s — savings that would otherwise be taxed heavily at 72 anyway.
A different couple — same ages, same town, no pensions, one spouse with a heart condition — gets a different plan. That is the point.
How Harmer Wealth approaches the decision
The CPP and OAS decision sits inside the retirement income plan, not beside it. We model your income from now to age 95 under each start date, with tax calculated at every step, and show you the difference in monthly income, in lifetime income and in what your estate looks like. Then you choose. Our office is at 5301 Main Street in Clarington, and we work with clients across Durham Region and Northumberland by Teams or in person.
Frequently asked questions
Is it better to take CPP at 60 or 65?
For most healthy people with other income, 65 or later produces more lifetime income. Taking CPP at 60 permanently reduces it by 36 percent and makes sense mainly for those with health concerns, no other income, or a plan that has considered drawing RRSPs first.
What is the CPP break-even age?
Roughly 74 for taking CPP at 60 versus 65, and roughly 82 for 65 versus 70, ignoring investment returns. Canadians who reach 65 live to about 84 (men) and 87 (women) on average, according to Statistics Canada.
Should I defer OAS to 70?
If you have other income between 65 and 70, expect to live into your mid-80s or beyond, and are not eligible for GIS, deferring OAS to 70 increases it by 36 percent for life. If you qualify for GIS, take OAS at 65.
Can I work and collect CPP at the same time?
Yes. If you work while receiving CPP between 60 and 65 you must keep contributing, and those contributions earn a Post-Retirement Benefit that increases your pension. Between 65 and 70 contributing is optional.
How much is the maximum CPP and OAS in 2026?
The maximum new CPP retirement pension at 65 is $1,507.65 a month in 2026; the average new pension is $877.01. Maximum OAS is $751.97 a month at 65 to 74 and $827.17 at 75 and over for July to September 2026, according to Canada.ca.
The next step
If you would like to see the CPP and OAS decision modelled with your own contribution history, pension and savings, book a complimentary consultation through HarmerWealth.com — choose Book Online — or call 1.800.723.2138. Bring your CPP Statement of Contributions and your most recent pension estimate; the rest we can build together.
Chad Harmer, PFP, CIM, FCSI, MBA
Founder & Senior Wealth Advisor, Harmer Wealth Management Corp.
Sources: Canada.ca (CPP and OAS amounts and timing rules, July–September 2026; Guaranteed Income Supplement amounts); Canada Revenue Agency (OAS recovery tax threshold, 2026); Statistics Canada (life expectancy at age 65, 2022–2024).
This article is for general information only and does not constitute personalized investment, tax, or legal advice. Benefit amounts and thresholds are current as of September 2026 and are indexed and revised by the Government of Canada; break-even figures are simplified illustrations that ignore investment returns and taxes. Returns are not guaranteed; market values fluctuate. Mutual funds are offered through Investia Financial Services Inc. Please consult a licensed professional about your specific situation.