You are 62 and are now eligible to collect Social Security (SSI). If you retire now...
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You are 62 and are now eligible to collect Social Security (SSI). If you retire now (Option A), then your Social Security benefit is $1,896 per month. If you retire at age 67 (Option B), then the benefit is $2,482 per month. You expect to live to age 92. Use an interest rate of 2.75% to account for the inflation adjustment of SSI benefits. Assume that benefits are collected at the end of each month. For Option A (early retirement), what is the future value of your benefits if you retire at age 62? Show work and draw a timeline. For Option B (normal retirement), what is the future value of your benefits if you retire at age 672 Define "focal date". What is the focal date in this case? You are 62 and are now eligible to collect Social Security (SSI). If you retire now (Option A), then your Social Security benefit is $1,896 per month. If you retire at age 67 (Option B), then the benefit is $2,482 per month. You expect to live to age 92. Use an interest rate of 2.75% to account for the inflation adjustment of SSI benefits. Assume that benefits are collected at the end of each month. For Option A (early retirement), what is the future value of your benefits if you retire at age 62? Show work and draw a timeline. For Option B (normal retirement), what is the future value of your benefits if you retire at age 672 Define "focal date". What is the focal date in this case?
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Option A early retirement at age 62 Retire at age 62 and collect 1896 per month for 30 years until ... View the full answer
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