Should you collect CPP and OAS while working in your 60s? Dec 7th

I have lived in Canada for 24 years and I’m 65 years old now. I am still working at a company making a $78,000 salary. Since my health condition is OK, I am going to continue to work for two to four years. My question is: In my situation, it is better for me to apply for OAS and CPP now or delay to apply for them?—Simon

Collecting CPP and OAS while working in your 60s

You can begin your Canada Pension Plan (CPP) pension as early as age 60 or as late as age 70, Simon. At age 65, you generally need 39 years of maximum contributions to receive the maximum CPP retirement pension. Given you have only 24 years of contributions, there may be a benefit to continuing to contribute and delaying the start of your CPP.

What are the maximum pensionable earnings for CPP in 2022?

Your $78,000 salary exceeds the maximum pensionable earnings of $64,900 for 2022, so you will contribute the maximum of $3,500 in CPP contributions this year. Your employer will contribute the same.

This will entitle you to about 1/39th more CPP retirement pension, or about $386 per year in today’s dollars, because the best 19 years of your contributions are used to calculate your pension at 65…