# Predicted Years of Receiving Social Security Benefits for Men Born in 1920 and1940 and Change in Years of Benefit Receipt between the Two Birth Cohorts, byRank in Mid-Career Income DistributionPredicted years of receiving Social Security: Men(in years)30252015Bottom 2nd 3rd 4th 5th 6th 7th 8th 9th TopBorn in 1940Decile of mid-career income distributionBorn in 1920

Question
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Assuming the lowest decile of men receive an average of \$800/month in Social Security, while the highest decile receive \$2200/month in Social Security how much does each receive (on average) during their years in retirement. Use the chart called: Predictive Years of Receiving Social Security Benefits. Also use the born in 1940 data.

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Step 1

Introduction:

Observe the “Born in 1940” curve in the given graph. The average of the lowest decile, marked as “Bottom” is \$800 and the average of the highest decile, marked as “Top” is \$2,200, both per month.

Now, the deciles are all equally-spaced. Thus, the averages of each decile must also be equally-spaced.

The range of the averages is: (average of the highest decile) – (average of the lowest decile) = 2,200 – 800 = 1,400.

Now, starting from the average of the first decile, if the constant quantity, say, c is added once, the average of the second decile is obtained; if 2c is added to the first decile average, the ave...

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