"A more practical framework begins with the expected real return of the portfolio used to bridge the delay -- typically around 4%-5% for a balanced 60/40 allocation. Unless a retiree has specifically earmarked more conservative assets, such as a bond or a TIPS ladder, it's realistic to assume that delayed benefits will be funded by withdrawals from the overall portfolio -- meaning that the 'cost' of delayed filing is the growth foregone on the assets withdrawn to replace Social Security income."  MORE >>