What is changing for CPP and OAS in 2026?

From January 1, 2026, Canadians can start CPP and OAS as early as 60 or defer up to 75. Early reductions are lighter, while later deferrals pay higher benefits. The wider window makes start age a key lever for taxes, GIS eligibility, and lifetime income stability in Canada retirement planning.

Who should consider deferring benefits to 70 or 75?

Deferral suits those with strong health prospects, adequate savings, and a desire for higher guaranteed income. It can reduce sequence risk, aid a surviving spouse, and improve inflation resilience. Always test CPP deferral 2026 and OAS changes 2026 against your tax brackets, clawbacks, and investment plan before choosing.

When is starting at 60 a better move?

Early claiming can fit if health is poor, work is ending soon, or cash is needed to pay debt or essentials. It may also raise near term GIS for some households. Model year by year to see how early income affects taxes, benefits, and portfolio withdrawals in Canada retirement planning.

How do taxes and clawbacks affect the decision?

Higher benefits from later starts can push income into higher tax brackets and trigger OAS recovery tax, while early starts may help in low income years. Build a multi year projection of CPP, OAS, RRSP/RRIF, dividends, and capital gains. Then choose the start age that minimizes lifetime tax and clawbacks.

Global Market Insights

February 7: CPP/OAS 2026 Reforms Upend Canada Retirement Planning

ByHuzaifa Zahoor February 7, 2026February 7, 2026

Canada retirement planning is shifting fast. Starting Jan 1, 2026, federal updates let Canadians claim CPP and OAS as early as 60 with lighter penalties or defer up to 75 for higher benefits. Benefit timing becomes a major cash flow lever. The right age depends on taxes, health, and market risk. We explain how CPP deferral 2026 and OAS changes 2026 could reshape budgets, and how to build a durable plan before these rules take effect. For Canada retirement planning, small timing moves can add stability to lifetime income and cut clawbacks.