Claiming CPP / Social Security Early vs Delaying to 70: How the Math Leans
It is the biggest single decision in most retirements: take the government pension as early as it is offered, or delay it for a permanently larger cheque. Our Retirement at 65 guide compares the Canadian and US systems — this page puts the early and late choices head-to-head, with the percentages the guide published and the household factors that should decide it.
Key takeaways
- CPP claimed at 60 is permanently reduced by 0.6% per month; delayed to 70 it grows by 0.7% per month. Delaying OAS adds 0.6% per month to 70.
- US Social Security claimed at 62 is cut by roughly 25–30% for life; delaying past full retirement age adds about 8% a year to 70.
- Early suits households that need the income now or face health limits. Delay suits the healthy and still-working — it is longevity insurance.
- There is no universal right answer: health, other income and work status decide it, household by household.
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The side-by-side
| CPP (Canada) | Social Security (US) | |
|---|---|---|
| Earliest claim | 60 | 62 |
| Standard / full age | 65 | 66–67, by birth year |
| Cost of claiming earliest | −0.6% for every month before 65, for life | Roughly −25–30% at 62, for life |
| Reward for delaying | +0.7% for every month of delay to 70 (OAS: +0.6%/month) | About +8% for every year of delay to 70 |
What 'early' actually costs
The reductions are permanent, and they ride on every cheque for the rest of your life. CPP started at 60 takes a 0.6%-per-month cut — sixty months of it. Social Security at 62 lands roughly 25–30% below the full-retirement benefit. The early cheque is not a smaller version of the same pension for a few years; it is a smaller pension forever, in exchange for more years of receiving it.
What delaying buys
Delay works the same machinery in reverse: CPP grows 0.7% per month of delay to age 70, OAS 0.6% per month, and Social Security about 8% per year past full retirement age to 70. Our guide frames it as a purchase: delaying buys a bigger, inflation-indexed, government-backed pension. Its value shows up late — a larger guaranteed income at 85 is worth more than it looks from 62.
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Who each side suits
Claim early if the money is genuinely needed, if health makes a long retirement less likely, or if claiming lets you stop draining savings in a bad market — the cheque has a job today. Delay if you are healthy, still earning, and can fund the gap years from work or savings: you are trading a few years of cheques for decades of larger ones, and insuring the scenario where you live longest and savings run thinnest. The guide is blunt that there is no universal answer — only a right answer for a household.
Do not forget the other legs
Government pensions are one leg of a three-legged stool, alongside personal savings and any workplace plan — that is our retirement guide's framing. The claiming decision should be made with the whole stool in view: a TFSA or RRSP bridge can fund the delay years, and cross-border workers should know the Canada–US totalization agreement can help them qualify under both systems. Start with the comparison above, then run your household's numbers before you claim.
Put it into practice
Model your retirement accounts in Pai Ledger HQ, and use the free money pack's retirement worksheets to test claim ages.
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Frequently asked questions
If I delay, do I lose the cheques I skipped forever?
You give up the early years' cheques in exchange for permanently larger ones later — that trade is the decision. The guide's way to view it: delaying is purchasing longevity insurance, not losing money by default.
Can I work while claiming?
Details matter, and our guide flags them: in Canada, CPP contributions after 65 can add Post-Retirement Benefits and OAS has an income-based recovery tax at high incomes; in the US, an earnings test can temporarily withhold benefits before full retirement age. Check before you claim.
What if I worked in both countries?
The Canada–US totalization agreement often lets combined work history help you qualify under both systems, and each country pays its own benefit — our retirement guide covers the basics; cross-border cases deserve professional advice.
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Two countries, two retirement systems. What CPP and OAS pay Canadians at 65, what Social Security pays Americans, and the delay-or-claim-early decision that matters most.
Watch next
Prefer reading? Read the guide: TFSA vs RRSP in Canada (2026): Which Account Should You Fill First?
Disclaimer: educational and informational only — not financial, tax, legal or investment advice. Figures and rules change and vary by province/state and personal circumstances. Consult a licensed professional for advice specific to your situation.
💬 Over to you
Early or late — which way is your household leaning, and is it health, work, or the savings bridge that's deciding it?
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