Why Delaying Social Security Benefits Isn’t Always The Best Decision

When deciding on the optimal age to claim Social Security benefits, conventional wisdom – backed by much of the academic research – often favors delaying benefits until age 70. This conclusion is rooted in models that rely on expected value: the assumption that the 'best' decision is the one that maximizes lifetime benefits in dollar terms. To create these models, researchers often use a very low (or even 0%) real discount rate, under the logic that the 'guaranteed' nature of Social Security payments makes them fundamentally different from riskier assets like stocks and bonds. The analysis, therefore, treats future Social Security benefits as nearly (or exactly) equivalent to those received today, which usually favors delaying because doing so results in a higher monthly benefit – and for those who live long enough to reach the breakeven point – a higher total benefit as well.

https://www.kitces.com/blog/discount-rate-delaying-social-security-benefits-retirement-planning/