Canada’s seniors now have the option to delay receiving their old age security (OAS) for up to five years past the age of eligibility.
“People today are taking many different paths to retirement, and some seniors are choosing to work longer,” says Diane Finley, minister of Human Resources and Skills Development. “Canadians now have the option to voluntarily defer their OAS pension for up to five years in exchange for a higher monthly amount.”
For every month that the receipt of OAS is delayed, seniors will receive an increased monthly pension of 0.6% per month up to a maximum of 36% at age 70.
The changes came into effect on Monday.
The federal government announced the new voluntary deferral option for OAS in the 2012 budget.
In that budget, the government also announced it would increase the eligibility age for OAS to 67 from 65 gradually starting in 2023, with full implementation by 2029.
More information about the deferral option is available on the Government of Canada website.
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