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Thumb of Michigan | The 8% guaranteed is tough to beat, IMHO.
Now on to the choice:
If you're married, what is your and your better half's family life expectancy (LE) look like?
What is your PIA (Primary Insurance Amount)?
What is your wife's PIA?
What is your present health?
Your wife's present health?
If both or one of you are healthy and have a longer life expectancy, which ever one of you have the higher PIA should delay until age 70, the other one should start collecting age FRA (Full Retirement Age). IF the lower PIA person's health changes to a lower LE, start collecting as soon as this is known (even if this is after FRA).
If both are healthy and have long LE, this changes things a little, especially if one half of the larger PIA is less than the smaller PIA. Then it very well could make sense to delay both to age 70. I know clear as mud. Here's an example: H's PIA is $2000 and W's PIA is $1500, her PIA is greater than 1/2 of husband's PIA, delaying both would see an 8% annual increase for each year delayed (actually calculated monthly).
The rational for delay is to maximize the larger benefit, if you're married, is the surviving spouse will continue to receive the larger benefit. So, you need to look at a joint LE table in this case.
The 'break even' point is variable, most calculations don't take in SS increases (inflation). Naturally, a bigger benefit(s) would see a bigger increase.
If you're not healthy, take SS as soon as possible.
For most folks delaying larger PIA until age 70 and taking the smaller PIA at FRA makes the most sense. Note: the spouse with the lower PIA taking SS at FRA, would be taking their own PIA and not 1/2 of the larger spouse's PIA. Muddy again, an example: H's PIA is $2000 and W's PIA is $800, she would only get SS based on her $800 PIA. Until H starts collecting his benefit, then she would get an increase to the $1000 PIA.
All this doesn't even look at the taxation factor(s) that apply to SS benefits (up to 85% taxation for married with income above ~$34K). Or if you are still paying into the SS system via taxable income from farm/wages.
As I use to tell client's just because I wear a size 46 extra-long suit jacket, it doesn't fit everyone (some folks would look like they are wearing a clown jacket). This decision should be based on YOUR individual family dynamics, not what your neighbor/best friend/etc. did.
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Social Security
