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Hi Allan. My wife and I (Canadian citizens) became non-residents of Canada in mid-2020 and filed up a Departure form with the CRA. We live and work in Portugal ever since (tax residents here). I applied for my CPP last year and have been receiving it for the last 6 months. I am turning 66 in September 2026, and was told by a friend that I can delay applying for OAS (to avoid CRA likely claw backs due some RRSP withdrawals we made in 2025, plus our Portuguese 2025 income). Do we have to apply for a delay in OAS (say to 2027 or 2028)?....; I was supposed to get an automatic OAS reminder from Service/Pensions Canada within 30 days of my 64th birthday (in 2024) but received nothing (we both have Service Canada accounts). My wife has a similar situation, she is just 3 years younger and not yet at the point of applying. Would greatly appreciate your help. Thank you in advance.
Hi Luke,
Yes, as a non-resident of Canada, you can delay starting Old Age Security (OAS), and in your situation that is often a very sensible planning strategy.
A few key points that should help clarify things:
- No application is required to “delay” OAS
OAS only starts once you apply (or if you are auto-enrolled). Since you are a non-resident and were not auto-enrolled, simply not applying effectively delays OAS. You can choose to apply later, anytime up to age 70. - Why you did not receive an automatic OAS notice
Automatic enrollment is generally limited to individuals who are Canadian residents with sufficient information on file. Non-residents are often excluded from auto-enrolment, which explains why you did not receive an OAS notice around age 64, even though your Service Canada account is active. - Delaying OAS increases the benefit
For each month you delay OAS after age 65, your pension increases by 0.6% per month, up to a maximum of 36% at age 70. This increase applies even if you are living outside Canada. - OAS clawback considerations (very important)
OAS is subject to the OAS Recovery Tax (clawback) based on your worldwide income, not just Canadian income. If you had:
then delaying OAS until your income is lower can help avoid or reduce clawback entirely.- Large RRSP withdrawals in 2025, and/or
- High Portuguese employment or investment income
- When you do apply later
When you decide to start OAS (e.g., at 67, 68, or later), you simply apply at that time. There is no penalty for waiting, and no retroactive loss beyond the months you intentionally delayed.
Your wife’s situation would be similar when she approaches age 65.
That said, the optimal timing depends on projected income levels (RRSP/RRIF withdrawals, foreign income, and treaty treatment). A short planning review can help determine the best age to start OAS in your case.
Hope this helps, and thanks for the thoughtful question.