Disclaimer: This is not financial nor legal advice. Just me thinking aloud.
If i understand correctly, if you choose to take your pension at the age of 60, you will get Rs 11 589/month. But if you choose the delayed gratification method, you get Rs 16 555/month. Is it worth it? It reminds me of the story of the hare and the tortoise. But, financial decisions should be taken using a mathematical approach. Always.
Let’s compare the 2 scenarios. Diksha decides to take her pension asap at 60 while Paul decides to wait till 65 to earn his pension. Let’s run the simulation.
We see that 198 months later i.e. when Paul reaches 75.5 years old that he finally catches up to Diksha’s earnings. If Paul dies before 75.5 years old, he is on the losing side.
But let’s do another simulation. What if Diksha doesn’t touch her pension till 65 years and just leaves it in the bank earning an interest rate of 3.3% as it is actually?
You see that now Paul has to wait 253 months to catch up with Diksha. i.e. at the age of 81. If Diksha manages to invest getting a high yield of 7%, Paul will never be able to catch up with her.
Of course, we are assuming everything will go to plan. What do you think I should simulate next? Will you take your pension at 60 or 65 or even 70?



















