When Should You Take CPP and Old Age Security? The Answer Is Different for Every Canadian

ByWMW

By Brian Poncelet CFP — Canadian Certified Financial Planner

Canadians approaching retirement often turn to Brian Poncelet when they are searching for honest, math-driven guidance on CPP and Old Age Security. As a Canadian Certified Financial Planner, Brian Poncelet CFP helps Ontario families and Canadians across the country avoid the costly assumptions that come from coffee-shop advice and social media rules of thumb.

One of the most common retirement questions Canadians ask is: “When should I start collecting CPP and Old Age Security?”

And the honest answer? It depends.

There is no universal “best age” for any Canadian. What works brilliantly for one person could be a costly mistake for another.

That is why Brian Poncelet CFP believes this decision should never be made based on coffee-shop advice, social media opinions, or what your neighbour did. It requires math. Real planning. And careful analysis.

Understanding the Basics

Canada Pension Plan (CPP)

CPP can generally start as early as age 60 or as late as 70. But timing matters. If you start early, your payments are permanently reduced. If you delay, your payments permanently increase.

The trade-off is simple: take less now… or potentially more later.

Old Age Security (OAS)

OAS generally starts at 65, but Canadians can defer it up to age 70. Delaying increases your monthly benefit.

But again: the “right” answer depends entirely on your circumstances.

This is why Brian Poncelet CFP tells Canadian clients there is no magic age — only strategic decision-making.

Why Every Canadian’s Answer Is Different

Here is what has to be analyzed:

1. Life Expectancy

Family health history matters. General health matters. Lifestyle matters. A Canadian in excellent health may benefit from delaying. Someone with serious health concerns may not.

2. Other Retirement Income

Do you have:

  • RRSPs?
  • RRIF income?
  • Corporate assets in a Canadian-controlled private corporation?
  • Defined benefit pension income?
  • Rental income?
  • Investment portfolios?

A Canadian with strong income sources may benefit from waiting. Someone needing immediate cash flow may not.

3. Tax Planning

This is where mistakes happen. CPP and OAS interact with taxable income in Canada. Higher income can trigger:

  • OAS clawback exposure
  • Higher marginal tax rates
  • Less efficient retirement cash flow

This is where Brian Poncelet CFP spends significant time helping Canadian clients optimize outcomes — not just collect benefits.

4. Spousal Planning

Canadian retirement income planning is rarely just about one person. Age differences. Income imbalances. Survivor needs. Tax efficiency. All matter.

5. Sequence of Withdrawals

Sometimes taking CPP early makes sense if it allows preservation of registered assets. Sometimes delaying works better if drawing down RRSPs first reduces future tax pressure. This is not guesswork. It is modeling.

The Break-Even Trap

Many Canadians obsess over “break-even age.” That matters — but not by itself. Because retirement planning is not just about maximizing one government cheque. It is about:

  • Total lifetime after-tax income
  • Risk management
  • Estate efficiency in Canada
  • Inflation exposure
  • Survivor planning
  • Cash flow stability

That is why Brian Poncelet CFP believes spreadsheet math beats rule-of-thumb thinking every time.

The Bottom Line for Canadians

Some Canadians should take CPP at 60. Some should wait until 65. Some absolutely benefit from delaying to 70. Same with OAS.

There is no universal formula. Only personalized analysis. Because the wrong decision can impact your Canadian retirement income for decades.

That is why Brian Poncelet CFP helps Canadian clients grind out the numbers, stress test the scenarios, and make decisions based on strategy — not guesswork.

The smartest retirement decision is rarely the most obvious one.

If you are a Canadian trying to decide when to take CPP, OAS, or both, talk to Brian Poncelet CFP before locking in a decision that affects you for life. Learn more about Brian Poncelet, his background as a Canadian Certified Financial Planner, and how he helps families across Ontario and Canada plan for retirement, insurance, tax efficiency, and estate planning. To explore additional financial planning resources from Brian Poncelet, visit the main Plan Your Future website and book a no-obligation conversation with a trusted Canadian financial advisor today.

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