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 $ _________________.

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Part a The maximum amount of benefits paid by the Company to the Policy Holder in a Policy Year rega... View the full answer