@dadomsI understand the concept that you are wrestling with. The point in time when you are essentially equal depends on the discount rate that you are using to measure one decision versus another. Another factor that is important is life expectancy. Because we do not know our individual life expectancy, it is OK to use the average (age 84). Thereafter, you may change the age plus or minus from age 84 and change the discount rate as well to reflect your individual situation. Most folks use 0% as a discount rate when comparing a SS Benefit at Full Retirement Age (FRA) versus Delayed Retirement (any age from FRA to age 70). Using 0% is not wrong. However, that would be the same as leaving money in a non-interest checking account for the period of time one is measuring. In your case, it is 44 months. Using 0%, you will recoup the 44 months of SS Benefits in 12.5 years or age 82.5. If you use a 3% discount rate which is close to the rate in the SS benefit formula, you will recoup in about 14 years or age 84. I have rounded fractions and months so other readers may understand the concept. Please note that the SSA advises that the election of SS Benefits at Early (age 62), FRA (66 to 67) or Delayed (70) are actuarial equivalents based on average life expectancy. which happens to be approximately age 84. Of course, everybody doesn't die at age 84. I suggest that you review the Mortality Stats at the SS website which were developed, I believe, as of 2019. You will find that about 2/3 (66%) of males have passed before attaining age 85. Females are at about 50% by age 85. Also, if you use a greater discount rate (i.e., 4%, 5%, 6%, or greater) because you are savvy investor, it will take longer to recoup your SS Benefits which is $126,764 ($2,881 X 44 months). If you add your spouse's additional SS Benefits that would need to be recouped or $17,072 ($388 X 44 months), you will need to recoup $143,836 ($3,269 X 44 months). Once again, using 0% as the discount rate will take just over 14 years (age 84) to recoup. At a 3% discount rate, you will recoup at approximately age 86.
So, the good news is that it will not take to age 100, but will take at least 12 or more years depending on the discount rate you use. Please note that I used $3,726 as your age 70 SS Benefit based on the following info from the SSA https://www.ssa.gov/OACT/ProgData/ar_drc.html It looks like your SS Benefit will increase 2/3 of 1% for each month you delay or 29.33% if you delay to age 70. That will increase your PIA at FRA from $2,881 to $3,726 or $845/month. I could not reconcile to the amount you provided or $4,050. I did not use any estimated COLA inasmuch as you would need to increase your amounts at FRA and each year thereafter until age 70 by the COLA percentages, if any. Those amounts will be de minimis compared to the amount (over $100,000) you need to recoup.
