Dr. William Fleming, Sr. turned 62 in 2004. He retires at age 67 (his Social Security normal retirement age is 65 years and 10 months). His PIA is $1,000. If he elects to receive social security benefits upon retirement, what monthly amount would he receive?

Question

Quizplus · Accepted Answer

Dr. William Fleming, Sr. would receive $1,088 per month. This is because he retires at 67, which is 14 months after his normal retirement age of 65 years and 10 months. Social Security benefits increase by 8% per year for each year one delays taking benefits past the normal retirement age, up to age 70. This is equivalent to a 2/3 of 1% increase per month. For 14 months, this results in a 9.33% increase (14 months * 2/3 of 1% = 9.33%) on his Primary Insurance Amount (PIA) of $1,000, making his adjusted benefit approximately $1,088 (rounded to the nearest dollar).

Dr William Fleming, Sr