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One way, but necessarily the only, to look at this is as a simple present value problem. For starters, lets assume an interest rate of 8% and you will live to age 85.

$430/month @ age 55: @pv(430*12,.08,30) = $58,090

$950/month @ age 65: @pv(950*12,.08,20) / 1.08^10 = $50,752.

Thus, given the assumptions, the better deal is $430/month @ age 55.

However, if you drop the interest rate assumption to 6%; the two alternatives are essentially identical in present value.

TheBadger
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