7. Monthly Social Security benefits Monthly Benefits The Social Security Administration has a computerized service that determines your benefits because Social Security benefits are based on a fairly complicated formula. In fact, the government is required to provide all covered workers with a Social Security Statement. Identify the range of benefits you can expect. - If you retire at age 62 , benefits of to % of your - If you retire at age 65 to 67 , receipt of ll retirement benefits - If you delay retirement until age 70, you can receive in your benefits. Range of Benefits Jacques, 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 Jacques's annual benefit reduction amounts in each of the following scenarios. - If Jacques retires this year and secures a part-time job earning $18,000, his annual benefit reduction amount is - If Jacques 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 Jacques retires next year and secures the same part-time job, the annual benefit reduction amount is Taxes on Benefits Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayer's base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero. Suppose Musashi is retiring this year at age 67 . The following table shows his data. Based on the income calculated, Musashi will have % of his Social Security benefits taxed