Service Canada is auto-enrolling retirees into the Old Age Security (OAS) program despite explicit requests to delay benefits.. This administrative failure forces some seniors to repay funds they did not want, disrupting retirement plans for those seeking higher future payouts.
The 0.6 per cent monthly incentive for delaying OAS
The Old Age Security program, which is distinct from the Canada Pension Plan, allows seniors to defer their monthly benefits past the age of 65. According to the report, those who choose to wait receive an increase of 0.6 per cent for every month of deferral, provided they apply before turning 70. This strategy is particularly valuable for retirees who are still earning high incomes, as it helps them avoid the income thresholds that trigger OAS clawbacks.
Since the introduction of auto-enrolment in 2013, more than 2.1 million Canadians have received payments without needing to apply. While this system was designed to streamline access, it has created a significant hurdle for the minority of seniors who proactively seek to opt out to maximize their long-term financial position.
Why Adam Chapman’s London, Ont. clients face "uncertainty"
Financial professionals are reporting a disconnect between client requests and agency action. Adam Chapman, a certified financial planner at YES Money in London, Ont., has warned his clients that the deferral process is fraught with difficulty. As reported, Chapman noted a case as recently as September where a client was auto-enrolled in Old Age Security despite having called Service Canada specifically to defer the benefit.
The consequences of these errors are often compounded by a lack of documentation. In one instance described by Chapman, a couple called Service Canada together to defer their benefits; while the woman's request was processed, the man's was not. Service Canada later claimed they had no record of the man's request, and because he did not discover the auto-enrolment until after a trip, he missed the six-month window to reverse the payments.
The year-long wait for a Sarnia resident's August 2025 request
The scale of these delays can be staggering, sometimes stretching into a full calendar year. Cameron Graham, a certified financial planner with Sterling Mutuals Inc. in Sarnia, Ont., highlighted a client who submitted a deferral request letter in August 2025—four months before turning 65. Despite this early effort, Service Canada did not process the request until August of the following year.
This delay created a cascading administrative failure. Because the client received unwanted OAS payments during that year, he is now unable to use the Service Canada online platform to start his pension in January 2027 until the erroneously received funds are repaid.. The only current workaround is a manual paper-filing process, which Graham notes can take another six months to process.
ESDC’s 120-day processing window and the "no record" gap
Employment and Social Development Canada (ESDC), the body overseeing Service Canada , maintains that most requests are handled timely. Liana Brault, an ESDC spokesperson, stated that the agency aims to process deferral requests within a standard 120-day time frame, though she admitted that workload volumes can cause variations. Additionally, ESDC spokesperson Samuelle Carbonneau noted that "urgent and dire needs cases" are prioritized and typically handled within two to three business days.
However, these official benchmarks do not explain why some deferral requests simply vanish from the system. A critical open question remains: why is Service Canada unable to produce records of phone requests made by clients, as seen in the case reported by Adam Chapman? Furthermore, it remains unclear why the online portal is completely locked for users who are in the process of repaying auto-enrolled funds, effectively punishing the retiree for the agency's own processing lag.
Marc Sabourin’s Winnipeg client and the July 2025 auto-enrolment
The frustration is not limited to Ontario. Marc Sabourin, a portfolio manager with Trans Canada Wealth Management at Harbourfront Wealth Management Inc. in Winnipeg, reported a client who notified Service Canada in July 2025—two months before turning 65—of his intent to defer. Despite this, the client was auto-enrolled anyway.
According to the report, this client has contacted Service Canada every month since the error occurred to have the auto-enrolment reversed. As of September, the issue remained unresolved, illustrating a pattern where the government's automated efficiency for the masses creates an unforgiving administrative landscape for those attempting to manage their retirement income strategically.
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