Charles, a 66 years old worker, is deciding between retirement either this year or the next year.
Question:
Charles, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $1,089.50. Assume that the benefit is the same for this year and the next year. Compute Charles's annual benefit reduction amounts in each of the following scenarios.
• If Charles retires this year and secures a part-time job earning $18,000, his annual benefit reduction amount is $ _________________.
• If Charles retires this year, secures the same part-time job, and in addition projects interest and dividend earnings of $7,000 per year, what his annual benefit reduction amount is $ _________________.
• If Charles retires next year and secures the same part-time job, the annual benefit reduction amount is $ _________________.
Elementary Statistics A step by step approach
ISBN: 978-0073386102
8th edition
Authors: Allan Bluman