Assignment 1 Answers

Assignment 1 Answers - Social Security Cases 1. A worked...

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Social Security Cases 1. “A” worked full-time for a shoe repair shop for 18 years before retirement. a) If “A” elects early retirement under his employer's defined-benefit pension plan at age 58, for what Social Security retirement benefits will “A” be eligible? Answer: “A” will not be eligible for Social Security retirement benefits until age 62, at which time he will be eligible to receive 80% of his PIA. b) If “A” elects to defer his retirement until age 70, could he elect to take Social Security retirement benefits at age 65? Answer: To receive Social Security retirement benefits, “A” must actually retire. He cannot continue with his current employer and, at the same time, receive Social Security benefits. “A” could elect to retire at any time after age 61 and start receiving a reduced retirement benefit. If “A” deferred retirement until age 65, he would receive his full PIA retirement benefit. Social Security benefits would increase for each month of deferral of retirement after age 65, up to age 70. “A” could defer retirement beyond age 70, but there would be no additional increase in benefits. 2. “B” was a full-time employee of a barber shop for 22 years until he retired at age 58. In view of “B’s” early retirement, what reduction in his Social Security retirement benefits must “B” accept? Answer: “B” must accept a 100% reduction in his retirement benefit at age 58. “B” is not permitted any Social Security retirement benefit until age 62. At age 62, “B” will be eligible for a reduced Social Security retirement benefit. 3. “C” retirement this year at age 65 and elected to receive his PIA retirement benefit. “C’s” wife is age 57. Their three children are married and all live some distance from Mr. and Mrs. “C.” What retirement benefit will Mrs. “C” receive, assuming she elects to take retirement benefits based on “C’s” PIA? Answer
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Assignment 1 Answers - Social Security Cases 1. A worked...

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