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ARTICLE · 11 DECEMBER 2013

Another Reason To Consider Working Beyond Age 65 — Increasing The Potential Value Of Your OAS Benefit

Old age security (OAS) is a benefit that is paid to eligible Canadian seniors who either apply for the benefit, or are automatically enrolled in the program.

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Old age security (OAS) is a benefit that is paid to eligible Canadian seniors who either apply for the benefit, or are automatically enrolled in the program. The value of the benefit is currently approximately $6,600 per year (it is adjusted quarterly for inflation) but is reduced or eliminated where income exceeds certain thresholds. For 2013, the OAS benefit is generally reduced where net income exceeds $70,954 and is completely eliminated where income exceeds $114,793. Therefore, if your income exceeds $114,793, applying for OAS is of no benefit.

Beginning on July 1, 2013, you may choose to delay receipt of OAS for up to five years beyond the normal benefit start date of age 65. In exchange, for each month of delay, your monthly pension payment will increase by .6%. If you delay for the maximum period of time allowed, you will only receive your pension at age 70, but your annual receipt will be 36% higher than it otherwise would be. In other words, based on the

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