Question
Mary is about to turn 62 and she is in dillema whether to take reduced social security benefits at 62 or wait till 65 to
Mary is about to turn 62 and she is in dillema whether to take reduced social security benefits at 62 or wait till 65 to get full benefits. She would be entitled to get $18,750 anually at full retirement age of 65, while she would get 77.5% of this amount if she decides to take social security at 62. whuich option she should select kif she can earn 5% return and her life expectancy is 88 years?
a) she would start taking at 62 since present value of benefits is $208,889 as against $195,015 at 65
b)she would wait till 65 since present value of benefits is $218,474 as against $208,889 at 62
c) she should start taking at 632 since poresent value of benefits is $208,889 as against $212,266 at 65.
d) she should wait till 65 since present value of benefits is $252,911 as against $208,889 at 62
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