# OAS deferral



## Rayman (Jul 2, 2017)

I moved to Canada when I was 36 so I will have 28 (a bit more if partial years count) years of residence and would be eligible for 28/40 of the full amount. If I defer receipt of OAS to age 67, do my years of residence increase to 30 (entitled to 30/40 of full amount) in addition to the regular 0.6% per month increase for deferring?


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## Mukhang pera (Feb 26, 2016)

According to this webpage - https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/benefit-amount.html - the answer would appear to be in the affirmative

*How the Old Age Security pension is calculated
Full pension*

You may qualify for a full OAS pension in one of two ways:

You resided in Canada for at least 40 years after turning 18; or
You were born on or before July 1, 1952, and
on July 1, 1977, you resided in Canada, or
after turning 18, you resided in Canada for a period of time prior to, but not on July 1, 1977, or
on July 1, 1977, you possessed a valid Canadian immigration visa.
In addition, you must have resided in Canada continuously for the 10 years immediately before the approval of your OAS pension. If you were absent from Canada during that 10-year period, you may still qualify for a full pension if:

you resided in Canada for at least one year immediately before the approval of your OAS pension, and
you had periods of prior residence in Canada that were equal to at least three times the period of absence during the 10-year period (three years of residence for every year of absence). For example, an absence of two years between the ages of 60 and 62 could be offset by six years of residence in Canada after age 18 and before age 55.

*Partial pension*

If you do not qualify for the full OAS pension, and do not want to wait until you do, you may qualify for a partial OAS pension.

A partial OAS pension is calculated at the rate of 1/40th of the full OAS pension for each complete year of residence in Canada after age 18.

The minimum period of residence in Canada you need to qualify for a partial OAS pension is 10 years after your 18th birthday (as long as you reside in Canada when you receive your OAS pension). For example, if you resided in Canada for 10 years after your 18th birthday, you may qualify to receive 10/40ths or one-quarter of the full OAS pension.


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## Dogger1953 (Dec 14, 2012)

Rayman said:


> I moved to Canada when I was 36 so I will have 28 (a bit more if partial years count) years of residence and would be eligible for 28/40 of the full amount. If I defer receipt of OAS to age 67, do my years of residence increase to 30 (entitled to 30/40 of full amount) in addition to the regular 0.6% per month increase for deferring?


Unfortunately, the answer is no. The period of time after age 65 can count either as additional residence or as voluntary deferral, but not both. Thus your choices at age 67 will be 28/40ths with a 14.4% increase or 30/40ths with no deferral increase.


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## Mukhang pera (Feb 26, 2016)

I have to agree with Dogger. In replying, I overlooked the fact that you asked if delaying applying for OAS would allow you to claim _both_ the 0.6% per month increase for deferring _and_ the extra years added to the total out of 40. What I was aiming to answer was whether for those short of 40 years at age 65, would they be allowed to defer and build up further years of credit post-65. The clear answer is "yes".

The quote from the fed website I posted suggests how one may elect to wait to collect and add extra years, but it does not suggest that you also can add the 0.6% per month increase at the same time. While the portion quoted does not expressly rule that out, that would seem to be a form of double dipping I would not expect to be permitted.

Not only does it seem unlikely the government would permit the double dipping, given Dogger's specialized expertise in the area, I think that resolves the issue beyond peradventure. No further investigation is required.


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