By not claiming until 70, the eight-year loss of Social Security benefits sums to $168,000, which would also be its present value with a 0 percent real interest rate. We could view that $168,000 as the approximate premium to buy a deferred income annuity with inflation-adjusted annual income of $16,200 beginning at age 70. The implied payout rate on the “annuity” provided by delaying Social Security is 9.64 percent.
