The article explains that the Old Age Security (OAS) pension rules in Canada prevent retirees from benefiting from both residency bonuses and deferral bonuses simultaneously.A person who qualifies for a partial pension due to insufficient residency years cannot later claim additional benefits from extra residency time.However, deferring OAS application after age 65 provides a bonus of 0.6% per month (7.2% annually).Section 7.1(3) of the Old Age Security Act ensures individuals receive the higher benefit between residency increases and deferral bonuses.For example, a 65-year-old with 38 years of residency who waits until 67 to apply would get a 14.4% boost from deferral, not residency.Experts note that the deferral bonus often outweighs residency increases, but the break-even point depends on individual entitlements.

The rules emphasize that retirees cannot 'double dip' by claiming both residency and deferral benefits, ensuring fair pension calculations based on actual residency and deferral periods.