Silvia is expected to receive full social security retirement benefit of $1525 p

Question

Silvia is expected to receive full social security retirement benefit of $1525 per month when she turns 67. She can take early retirement with reduced benefits starting from age 62. She will have no other income and taxes once she retires. Should Silvia take early retirement at age 64 or full benefit at age 67? Assume expected return to be 4% and life expectancy of 88 years. Choose one of th following:

At 67 since present value at 64 for taking retirement at 67 is $230,887

At 67 since present value at 64 for taking retirement at 67 is $259,716

At 64 since present value at 64 for taking retirement at 64 is $231,278

At 64 since present value at 64 for taking retirement at 64 is $233,216

At 67 since present value at 64 for taking retirement at 67 is $230,887

At 67 since present value at 64 for taking retirement at 67 is $259,716

At 64 since present value at 64 for taking retirement at 64 is $231,278

At 64 since present value at 64 for taking retirement at 64 is $233,216

Explanation / Answer

yes, she can take early retirement to enjoy higher benefits

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