Question

Jamar's Social Security benefit at full retirement age will be $2,190.00 per month. Determine how much his monthly benefit will be reduced if he begins collecting 46 months early. $499.50, $505.40, $529.25, $533.80.

Answer 1

Jamar's monthly Social Security benefit will be reduced by approximately $529.25 if he begins collecting 46 months early.

Step-by-step explanation:

To determine the reduction in Jamar's monthly Social Security benefit if he begins collecting 46 months early, we need to calculate the reduction percentage.

The reduction is based on the number of months before full retirement age that benefits are claimed.

The reduction percentage is 5/9 of 1% per month, up to 36 months early, and an additional 5/12 of 1% for each additional month.

For Jamar, who wants to collect benefits 46 months early, we will calculate the reduction based on these percentages:

• 36 months at 5/9 of 1% reduction: 36 * (5/9 / 100) = 0.2
• 10 months at 5/12 of 1% reduction: 10 * (5/12 / 100) = 0.04167

Adding the two reductions together, the total reduction percentage is 0.2 + 0.04167 = 0.24167.

To find the monthly benefit reduction amount, multiply Jamar's full retirement benefit of $2,190.00 by the reduction percentage: $2,190.00 * 0.24167 = $529.2463.

Therefore, Jamar's monthly benefit will be reduced by approximately $529.25 if he begins collecting 46 months early.