LLQP Segregated Funds & Annuities · Component 1.2 · 35% of the exam
A client asks whether OAS can be deferred. The agent should explain:
- ANo, since OAS must be taken at 65 and any delay simply forfeits the payments for those months
- BDeferral reduces it, since the government treats late applicants as having waived part of the pension
- Yes, up to 60 months, increasing the pension for each month deferred
- DDeferral is automatic for anyone still working at 65, so no application is needed
Correct answer: C) Yes, up to 60 months, increasing the pension for each month deferred
OAS deferral parallels CPP deferral. It suits clients whose income at 65 would trigger clawback.
Why the other options are wrong
- ADeferral is available to age 70.
- BDeferral increases the pension.
- DThe client must delay the application or request deferral.
Exam tip
OAS deferral to 70 raises the pension; consider when clawback applies at 65.
Common mistake
Applying for OAS at 65 for a client still earning high income.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 1
- The first step before recommending a segregated fund or annuity is to:
- A client's 'time horizon' for an investment is:
- 'Risk tolerance' in an investor profile refers to:
- A client says he wants 'high returns with no risk of losing money'. The agent should:
- Investment objectives are commonly classified as:
- Why is the client's marginal tax rate relevant to a segregated fund recommendation?
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.