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Time horizon refers to the expected period over which your benefits are received, which is influenced by your life expectancy. Your discount rate reflects the value of your future benefits relative to receiving income today, while also considering your personal preferences, inflation, and opportunity costs.

What to know: A longer projected time horizon generally supports delaying benefits, as this increases your monthly amount. A lower discount rate (e.g., two percent) also favors delaying benefits, as the long-term value often outweighs immediate income needs. Conversely, a higher discount rate (e.g., six percent) suggests a preference for early claiming, often driven by anticipated higher investment returns.

Key takeaways: If you have a longer life expectancy, you might benefit from delaying Social Security benefits to maximize guaranteed income, but this will ultimately depend on a variety of factors, including your retirement goals and risk tolerance. To most efficiently balance your options, it’s vital to get guidance from a trust financial professional.