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April 02, 2013 at 1:16 AM

OLD AGE SECURITY - VOLUNTARY DEFERRAL

The voluntary deferral of the Old Age Security (OAS) pension proposed in the 2012 Federal Budget will provide the option to defer take-up of the OAS pension by up to five years past the age of eligibility, in exchange for an enhanced monthly benefit of 0.6 percent per month of deferral (7.2 percent for a full year of deferral).  Once a person chooses to receive their OAS pension, this percentage increase will be applied to the benefit for the rest of their lives.

If an individual decides to make a five-year deferral, his/her annual pension will be $8,814 instead of $6,481 (in 2012 dollars).

This new voluntary deferral of the OAS pension starts in July 2013.

Tax Tips & Traps 2013