I am trying to get my mind around all of this...longinvest wrote:I've always claimed that there is a pretty big risk for the heirs, not for the pensioner himself. The delayed pension allows him to safely spend more, while alive, than by taking the pension early. But, this comes with a relatively good probability that the heirs will get less after the pensioner's death, except when the pensioner wins the longevity lottery.
I think that you are saying that the late pensioner (beginning at age 70) has to wait about a decade to catch up to the early pensioner (with respect to total QPP received) and he will probably end his life poorer. In exchange he will have been able to spend more. ISTM that this means that the early pensioner will end his/her life richer (since the other one is poorer). Don't you think that if the early pensioner were to spend a bit more that both scenarios will come out equal?
StuBee
P.S. Sorry if I am being a pain in the a**.