One of the most common retirement questions Canadians ask is:

“When should I start taking CPP and OAS?”

It's a great question because the answer can have a meaningful impact on your retirement income.

The challenge is that there isn't a single "best" age that works for everyone.

The right decision depends on your health, lifestyle, income needs, tax situation, and overall retirement plan.

Let's look at the factors that matter most.

Understanding the Basics

Canada Pension Plan (CPP)

You can start CPP as early as age 60 or delay it until age 70.

The longer you wait, the larger your monthly payment becomes.

According to the Government of Canada:

• Taking CPP at age 60 reduces your benefit by 0.6% per month before age 65 (up to 36% less) 
• Delaying CPP after age 65 increases your benefit by 0.7% per month (up to 42% more at age 70) 

That's a significant difference.

Old Age Security (OAS)

OAS typically begins at age 65.

However, you can delay it until age 70.

For every month you delay after age 65, your OAS payment increases by 0.6%, up to a maximum increase of 36% at age 70.

Why Many People Take CPP and OAS Early

The most common reason is simple:

They want the income.

Some retirees prefer receiving benefits sooner rather than later, especially if they:

• Retire before age 65 
• Need additional cash flow 
• Have health concerns 
• Are worried about longevity risks in reverse (not living long enough to benefit from delaying) 

For some people, taking benefits earlier absolutely makes sense.

The Case for Delaying

Over the last decade, more research has pointed to the benefits of delaying CPP and OAS for many retirees.

Why?

Because CPP and OAS are essentially government-backed, inflation-adjusted income streams.

The larger those guaranteed payments become, the less pressure there may be on your investment portfolio later in life.

For retirees who have:

• Significant RRSPs or RRIFs 
• Corporate assets 
• Non-registered investments 
• Other sources of retirement income 

Delaying CPP and OAS can sometimes improve long-term retirement outcomes.

The Tax Planning Opportunity

One factor that's often overlooked is taxes.

Many Canadians retire before they begin CPP and OAS.

Those years can create a unique planning window.

For example:

Someone retires at 60 and delays CPP and OAS.

Between ages 60 and 70, they may have lower taxable income than they will later in retirement.

This can create opportunities to:

• Draw down RRSPs strategically 
• Reduce future RRIF balances 
• Potentially lower future OAS clawback exposure 
• Smooth income over retirement 

In some cases, this approach can improve after-tax retirement income over the long term.

It's Not Just About Break-Even Calculations

Many discussions focus on the "break-even age."

In other words:

"At what age will delaying CPP pay off?"

While that's useful, it's only part of the story.

The bigger questions are:

• How much guaranteed income do you want later in life? 
• How much investment risk are you comfortable taking? 
• How long do you expect retirement to last? 
• What does your overall retirement income plan look like? 

CPP and OAS decisions shouldn't be made in isolation.

They should be part of a broader retirement strategy.

What About Nova Scotia Retirees?

Whether you live in Nova Scotia or anywhere else in Canada, the CPP and OAS rules are the same.

However, many Nova Scotians retire with a combination of:

• Government benefits 
• RRSPs and RRIFs  
• Defined benefit pensions 
• Non-registered investments 
• Business assets  

The interaction between these income sources can significantly affect taxes and cash flow.

That's why the "best" age to take CPP and OAS often depends less on the benefits themselves and more on how they fit into your overall retirement plan.

The Bottom Line

There is no universal answer to when you should take CPP and OAS.

For some retirees, taking benefits early makes sense.

For others, delaying can create higher guaranteed income and improve long-term retirement security.

The key is understanding that this isn't simply a CPP decision.

It's a retirement income planning decision.

And often, the best choice is the one that works alongside your investments, tax situation, and lifestyle goals—not separate from them.

When should you take CPP and OAS?