Question

Sabrina is planning her retirement. If she defers taking her Old Age Security (OAS) to age 70 (instead of age 65) and defers taking her Canada Pension Plan (CPP) to age 70 (instead of age 65), she can increase the pension benefit by how much?

CPP benefit would increase by 42%; OAS benefit would increase by 36%

CPP benefit would increase by 42%; OAS benefit would increase by 42%

CPP benefit would increase by 36%; OAS benefit would increase by 42%

CPP benefit would increase by 36%; OAS benefit would increase by 36%

Delaying the receipt of either pension would not result in any difference

Answer #1

Answer : **Option CPP benefit would increase by 42%; OAS
benefit would increase by 36% is correct.**

**Reason :**

Sabrina may by delaying **CPP** to age 70 will
receive 8.4 percent more each year up to a maximum of **42
percent** more .**Therefore CPP benefit would increase
by 42% if she takes at age 70 instead of age 65**

Sabrina can defer receiving Old Age Security (OAS) pension for
up to 60 months (i.e .5 years) after the date of eligibility for an
OAS pension in exchange for a higher monthly amount.By delaying
receiving OAS pension, she can get increased monthly pension
payment by 0.6% for every month on delay receiving it, up to
maximum of 36% at age 70. **Therefore OAS benefit would
increase by 36 % if she takes at age 70 instead of age
65**

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c. $765
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