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Breakeven vs. present-value: Breakeven analysis involves determining the age at which your total benefits received surpass the amount received if you delay claiming. It suggests that claiming at age 67 is often the best choice for 62-year-old males, but it doesn't consider components like the time value of money, the insurance aspect of Social Security and variations in life expectancies.

Present-value calculations factor in your time value of money and consider a longer time horizon, such as age 100. These calculations tend to favor delaying claiming to prioritize future payments over immediate ones. However, your recommended claiming age can change based on the chosen time horizon and discount rate.

Before you determine the best strategy for Social Security, it’s important to understand the fundamentals. If you need the money, use the break-even analysis. If you have other assets, use the present-value calculation. Just remember: This is your starting point, not the finish line.