Mary was born in 1955. She started working at the age of 18 in 1973. From 1973-1976, she worked part-time in a department store while attending college. She earned $5,000 in each of those four years. In 1977, Mary was hired as a schoolteacher. Her starting salary was $15,000 a year, and she received regular raises of 2 percent in each of the next five years. She got married in 1980 but continued to teach until she quit her job (earning no income) in 1983 in order to stay home with her first baby. Mary re-entered the workforce in 1990 and earned the following until she retired at the age of 62 in 2017.

1990 $45,000 2001 $58,200 2012 $56,200

1991 $45,500 2002 $59,000 2013 $57,500

1992 $46,000 2003 $59,900 2014 $59,000

1993 $47,200 2004 $60,700 2015 $61,400

1994 $49,000 2005 $62,000 2016 $63,000

1995 $50,100 2006 $63,400

1996 $52,300 2007 $64,800

1997 $53,500 2008 LAID OFF IN RECESSION $0.00

1998 $55,800 2009 $0.00

1999 $56,400 2010 $0.00

2000 $58,000 2011 REHIRED AT SALARY OF $55,000

Complete the worksheet on the next page of this assignment. How much will Mary receive in the form of Social Security retirement when she retires at age 62?

How much larger would her monthly benefit be if she waited until age 66 and 2 months to

begin collecting her benefits?

If Mary has no other form of income or savings, how much will she have to live on each year if she

retires at age 62?

Step 5: a. Multiply the first $885 in Step 4 by 90%. $_ b. Multiply the amount in Step 4 over $885, and less than or equal to $5,336, by 32%. $ C. Multiply the amount in Step 4 over $5,336 by 15%. Step 1: Enter your earnings in Column B, but not more than the amount shown in Column A. If you have no earnings, enter"0." Step 2: Multiply the amounts in Column B by the index factors in Column C, and enter the results in Column D. This gives you your indexed earnings, or the estimated value of your earnings in current dollars. Step 3: Choose from Column D the 35 years with the highest amounts. Add these amounts. $ Step 4: Divide the result from Step 3 by 420 (the number of months in 35 years). Round down to the next lowest dollar. This will give you your average indexed monthly earnings. $. D. Indexed earnings 1990 A. Year Maximum earnings 1956 $4,200 1957 $4,200 1958 $4,200 1959 $4,800 1960 $4,800 1961 $4,800 1962 $4,800 1963 $4,800 1964 $4,800 1965 $4,800 1966 $6,600 1967 $6,600 1968 $7,800 1969 $7,800 1970 $7,800 1971 $7,800 1972 $9,000 1973 $10,800 1974 $13,200 1975 $14,100 1976 $15,300 1977 $16,500 1978 $17.700 1979 $22,900 1980 $25,900 1981 $29,700 1982 $32,400 1983 $35,700 1984 $37,800 1985 $39,600 B. Actual Index earnings factor 13.62 13.21 13.09 12.47 12.00 11.77 11.21 10.94 10.51 10.32 9.74 9.23 8.63 8.16 7.78 Step 6: Add a, b, and c from Step 5. Round down to the next lowest dollar. This is your estimated monthly retirement benefit at age 66 and 2 months, your full retirement age. $_ Step 7: Multiply the amount in Step 6 by 74.167%. This is your estimated monthly retirement benefit if you retire at age 62. $ A. B. C. D. Year Maximum Actual Index Indexed earnings earnings factor earnings 1986 $42,000 2.78 1987 $43,800 2.61 1988 $45,000 2.49 1989 $48,000 2.39 $51,300 2.29 1991 $53,400 2.21 1992 $55,500 2.10 1993 $57,600 2.08 1994 $60,600 2.02 1995 $61,200 1.95 1996 $62,700 1.86 1997 $65,400 1.75 1998 $68,400 1.67 1999 $72,600 1.58 2000 $76,200 1.50 2001 $80,400 1.46 2002 $84,900 1.45 2003 $87,000 1.41 2004 $87,900 1.35 2005 $90,000 1.30 2006 $94,200 1.24 2007 $97,500 1.19 2008 $102,000 1.16 2009 $106,800 2010 $106,800 1.15 2011 $106.800 1.12 2012 $110,100 1.09 2013 $113,700 1.07 2014 $117,000 1.03 2015 $118,500 1.00 2016 $118,500 1.00 7.40 6.74 6.35 5.99 5.57 5.21 4.92 4.56 4.19 3.84 3.49 3.31 3.16 2.98 2.86 1.18 aeren anaa