Canadians are living longer, thanks to global advances in health, fitness and science. People today are taking many different paths to retirement, and some seniors are choosing to work longer. This means all kinds of choices and adjustments, from personal decisions about careers and retirement, to the need for governments to develop and amend policies and programs.

To improve flexibility and choice in retirement planning, the Government of Canada announced the new voluntary deferral option for the Old Age Security (OAS) pension. 
As of July 1, 2013, Canadians have now been given the option to voluntarily defer their OAS pension for up to five years.

Doing so concentrates their total payments into a shorter time frame, meaning a higher monthly amount. For every month they delay receipt of their OAS pension, they will receive an increased monthly benefit of 0.6 percent per month, up to a maximum of 36 percent at age 70.

People can defer their OAS pension for as little as one month, or as much as 60 months. For example, if you were to turn 65 today and decided to delay receiving your OAS pension for one year, your monthly amount would increase by 7.2 percent (0.6 percent x 12 months).

A deferred OAS payment isn’t for everyone, though. People should consider their personal situations when deciding when to start receiving their OAS pension. Some things to consider are financial status, life expectancy, wants and needs.

Something else to keep in mind is that delaying the OAS pension means a similar delay in the receipt of Guaranteed Income Supplement. In addition, a spouse or common-law partner will not be eligible to receive the Allowance until their OAS pension begins.

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The audio version of Garry's July 22, 2013 op-ed column can be heard by clicking here