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The Case for Delaying CPP and OAS

I was a guest on a TD Direct Investing webinar to discuss the case for delaying the start of CPP and OAS payments with Robert Moysey.  He did a great job asking good questions and keeping me on track.  See the link to the video below.

 

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  1. LeoJune 19, 2025 at 10:45 AM

    I've looked at this as well. But I wonder if you are also taking into account the indexing that will happen once you start taking CPP&OAS. I.E. you start taking it at 60, and at 61 your benefits will be indexed with inflation @ approximately 2%. Granted that after 10 years, this works out to aprox 20%, but still.

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    1. Michael JamesJune 19, 2025 at 11:35 AM

      Yes, my analysis takes indexing into account. If you start CPP at 60, it will rise with price inflation (CPI) thereafter. If you delay CPP, it rises with wage inflation until you take it. Wage inflation typically outpaces price inflation by a small margin, so this favours delaying somewhat.

      You're right to think about inflation here, though. I see many older financial planners, who have advocated taking CPP at 60 their whole careers, do analyses that ignore inflation. They get it all wrong, but they do get the answer they want: taking CPP early. That way, the percentage fees they charge for managing a portfolio stay higher for 15 to 20 years. After that, their clients are worse off.

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