CPP + OAS planner in 2026: how it works, with a worked example

Questions people ask

Should I start CPP and OAS at the same time?

Not necessarily. CPP grows 8.4% a year by waiting past 65 and OAS 7.2%, and the OAS clawback depends on income, so many people do best starting CPP later than OAS or the reverse depending on their other income. The planner tests fifteen combinations rather than assuming.

Why does the planner look at after-tax income?

Because both pensions are taxable and OAS is clawed back above the threshold. A bigger gross pension in a high-tax year can be worth less than a smaller one in a low-tax year. Comparing after tax, using your province's 2026 brackets, is the only fair way.

Can I defer OAS if I have already started CPP?

Yes, they are independent. OAS can start any month from 65 to 70; each month of delay adds 0.6%. You can also start OAS and defer CPP, or defer both.

What if my other income drops at 71 when my pension changes?

The planner holds other income constant. Run it twice with the two income levels to bracket the answer, or use the withdrawal-order tool to see how RRIF withdrawals interact with the pensions.

Does it include the GIS?

No. The Guaranteed Income Supplement matters for people with little other income, and it is reduced 50 cents per dollar of most income, which pushes strongly toward taking CPP early and OAS at 65. If your total income is under about $30,000, treat the planner's answer with caution.

How accurate is 'today's dollars'?

CPP is indexed to the CPI each January and OAS every quarter, so both keep their purchasing power. Working in today's dollars removes inflation from the comparison; the real return input lets you credit money received early if you would invest it.

How much will I get per month after tax?

The headline shows CPP plus OAS at 65, less income tax and any OAS clawback on top of your other income. The full CPP is about $1,500 a month in 2026 and OAS about $740, but most people receive less CPP than the maximum.

What is GIS and why does it change the advice?

The Guaranteed Income Supplement is a tax-free top-up for OAS recipients with low income, reduced by 50 cents for every dollar of other income. If you would qualify, deferring OAS forfeits GIS, and every dollar of CPP reduces GIS, so taking OAS at 65 and CPP early is often better, the opposite of the usual advice.

Should I take CPP and OAS at the same age?

Not necessarily. The grid compares every combination. OAS deferral pays 0.6% a month (7.2% a year) and CPP 0.7% a month (8.4% a year), and each interacts differently with GIS, the clawback and your other income.

Does the planner include pension income splitting?

No. Couples who split pension or RRIF income can lower their combined tax, which the single-person calculation does not capture. The couple setting affects only the GIS note; treat the results as a per-person estimate.