Engineering Economics Problem: Social Security

The full page question, with all 'needed' information, can be seen here:

For a higher-definition view of the picture, please go here for a pdf version:

https://www.docdroid.net/LijUF2m/casestudy.pdf.html

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NOTE: THERE NEEDS TO BE CALCULATIONS, NOT JUST LOGIC. Really need an answer asap, my last one has gone 8 hours with no answer..

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Based on the information about Bob (both in the graphs on the left and the information in the paragraph with the highlighted text):

Consider the impact of COLA and the time value of money (which was not accounted for in the given information) in an economic analysis and determine what age Bob should retire. Justify this selection with calculations, comparing the alternatives, etc.

Then, describe how Social Security operates. Determine if any possible ethical concerns exist with the Social Security process. Justify the answer.

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NOTE: THERE NEEDS TO BE CALCULATIONS, NOT JUST LOGIC.

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No information was given on COLA other than whats in the picture.

Benefit Basis When Should You Social Security benefits are based on up to 35 Take Social Security? years of earnings. The example represents a Timing your benefits to suit your needs rough calculation based on a current salary of $100,000 THE BASICS Important Disclosures If you collect early, your monthly payout will be lower, you'll receive more checks over your lifetime. Benefits estimates based on data from ssa.gov, shown in today's dollars, using SSA's Quick If you take Social Security later, you forgo the income for several years but are rewarded with an increased Calculator as of 6/4/2014, for someone born monthly benefit. January 2, 1953, and making$100,000. Retirement date is on his birthday and the WHEN SHOULD YOU COLLECT? accumulated annual benefits for each age It depends on how much income you think you wi need, whether you wi continue working and your reflect a full 12 months of benefits. No cost of health and life expectancy. living adjustment is included. Time value of Take Bob, for example. He turns 62 next year and currently makes $100,000. Let's look at how three hypothetical retirement scenarios would impact his money is not considered in the example. monthly benefits. Assignment at age 62 at age 70 at age 66 (1) Consider the impact of COLA and the time Dob has had value of money in an economic analysis and health issues that have health and decides required him to retire savings to cover his earlier than anticipated. determine what age Bob should retire. for full retirement so he chooses to delay Justify your selection $1,621 (2) Describe how Social Security operates. Determine if any possible ethical concerns 20-30% 8% exist with the Social Security process The amount apersons benefits could Annual increase benefits for each year be reducedif he chooses to collect at retirement age until age 700 age 62 istead of fullretirement aga. that a person delays colecting benefits. Justify your answer. Reference Charles Schwab. 2016. When Should You Take Social HOW RETIREMENT BENEFITS STACK UP Security? May 2016. Accessed November 21, 2016. http:// nt benefits would accrue Here's how Bob's annual retireme www.schwab.com/public/schwabn/ over time for each of the three scenarios above articles/When-Should-You-Take-Social-Security retirement Delayed retirement money over time