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
