Given my current FIRE plans, I'm not relying on SS benefits and could probably defer them until age 70. However that's also when the Required Minimum Distribution (RMD) will take effect and, with current projections, push my income into the 28% bracket.
In one scenario I elect to take SS early at age 62 with $1680 monthly payments, nearly tax-free or very low taxes. If I defer until age 70, I receive $3000 monthly, but due to RMD pushing up my tax bracket I'm actually receiving an effective $2160/month benefit. Now in the 8 years I've been collecting early SS, my accumulated benefits have exceeded $161,000. It's going to take a long time for my higher-taxed, deferred benefits to catch up with my earlier benefits, not even taking into consideration the time value of money received in earlier years.
Is my understanding of the situation correct?