Problem 4: Calculating Social Security Benefits. Beth has earnings from age 25 to age 64. From age
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Problem 4: Calculating Social Security Benefits. Beth has earnings from age 25 to age 64. From age 25 to age 49, Beth's real earnings are $700 every month. From age 50 to 64, Beth's real earnings are $1,400 every month. Use the procedure described in the lecture notes to answer the following questions.
a) What is Beth's AIME? (Take the 35-year average of monthly earnings.)
b) What is Beth's PIA? (Use the PIA calculation rules.)
c) Beth retires exactly one year before qualifying for the full benefits amount. What are her monthly Social Security benefits in retirement?
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