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...They explain that away by pointing to the cost of living (COLA) adjustments made to SSA payments. That makes up for part, but not all, of the time value you mention...

If they were awake that day in econ 101, they know that the COLA makes up for NONE of the the time value of money.

Economists usually separate the two effects. However, in the real world, interest rates usually combine the two. There are exceptions: iBonds and Treasury Inflation Protected Securities (TIPS) are both US Government debt instruments which explicitly account for TVM and inflation separately.

The bottom line is that the SS break-even calculation is a scam perpetrated by the government on the least financially sophisticated people in our society.

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Personally, I claimed at 62, the earliest possible age, both because I understand TVM and I also understand the returns on investments in stocks. By leaving my personal money invested and living on the government's nickel I have done quite a bit better over the years than I would have done otherwise.

There are other reasons to claim early -- money in my personal account is inheritable, SS ends when I pass, and my children get nothing.

Also, SS will run out of money in the ~2031 time frame, most likely earlier. I expect benefits will be reduced. It is politically much more difficult to reduce benefits that have started than to delay benefits that have not yet started. Take your money at the earliest opportunity.