Question

John was born in 1951 and has been contributing to his own retirement plan as well as

Social Security for many years. John was trying to decide if he wanted to retire at 62 years of age rather than at 66 when he would reach full retirement age. According to the Social Security laws, John would receive a 25% reduction in his Social Security if he retired at 62. John went to the Social Security website and discovered that if he retired at 66 he would receive $2,460 a month in retirement from Social Security. How much would he receive if he retired at 62 rather than at 66?
a. $1,650 a month
b. $1,845 a month
c. $1,500 a month
d. $1,745 a month

Answer 1

`\boxed{\text{b. \$1845 a month}}`

Explanation:

Amount if retired at 66 = $2460/mo

Less 25 % = 0.25 × 2460 = -615

Amount if retired at 62 = $1845/mo

John would receive
`\boxed{\text{\$1845/mo}}` if he retired at 62.