Deciding when to start your Canada Pension Plan (CPP) and Old Age Security (OAS) benefits is one of the most consequential retirement decisions Canadians make — and with new 2026 payment amounts now in effect, the team at Aleph Retirement Planners say it’s worth a fresh look at the numbers.
CPP Payments in 2026: Maximum vs. Reality
According to the Government of Canada, the maximum CPP retirement pension at age 65 is $1,507.65 per month in 2026, reflecting the ongoing CPP enhancement that began in 2019. The average new beneficiary, however, receives just $925.35 per month — a gap of nearly $600 that catches many retirees off guard.
That gap exists because the maximum requires roughly four decades of contributions at or above the yearly maximum pensionable earnings. For most Canadians, government benefits alone won’t cover the lifestyle they’ve planned for, which is why personal savings and timing strategies matter so much.
OAS in 2026 — and the Clawback to Watch
For the April to June 2026 quarter, the maximum OAS pension is $743.05 per month for those aged 65 to 74, rising to $817.36 at age 75 and over, per Employment and Social Development Canada.
Higher-income retirees should note the OAS recovery tax. In 2026, OAS repayment applies to net world income between $95,323 and $154,708 for those aged 65 to 74. Careful withdrawal sequencing — for example, drawing down RRSPs earlier or leaning on Tax-Free Savings Account (TFSA) income, which doesn’t count toward the threshold — can help preserve your full pension.
The Case for Deferring
Both programs reward patience. OAS increases by 0.6% for every month you delay past 65, up to 36% more at age 70. CPP grows even faster — 0.7% per month, or 42% more at 70. For healthy retirees with other income sources, deferral can mean significantly higher guaranteed, inflation-indexed income for life.
Don’t Forget Your 2026 TFSA Room
The Canada Revenue Agency has set the 2026 TFSA dollar limit at $7,000, bringing cumulative room to $109,000 for those eligible since 2009 — a powerful tool for tax-free retirement income.
The Bottom Line
The “right” time to take CPP and OAS depends on your health, savings, tax bracket, and income needs. A personalized retirement income plan can put these 2026 numbers to work for you.
