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Social Security and Life Expectancy
The amount of a retiree’s Social Security benefit depends on the retiree’s lifetime earnings. the person’s full retirement age. and the age at the time of retirement. The following function gives the annual benefit in dollars for a person retiring in 2012 at ages 62 through 70 with a full retirement benefit of $12,000 at full retirement age of 66.
a) Graph the benefit function.
b) What is the annual benefit for a person who retires at age 64?
c) At what age does a person receive an annual benefit of $ 14.880?
d) What is the average rale of change of the benefit for ages 62 through 63? Ages 64 through 66? Ages 66 through 70?
e) Do the answers to part (d) appear in the annual benefit formula?
The life expectancy L for a U.S. white male with present age a can be modeled by the formula
L = 67.01660.00308)a.
f) Bob is a white male retiring in 2012 at age 62. What total amount can he be expected to draw from Social Security before he dies? Figure his Social Security benefit using the formula given above.
g) Bill is a white male retiring in 2012 at age 70. What total amount can he be expected to draw from Social Security before he dies? Figure his Social Security benefit using the formula given above.
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College Algebra (6th Edition)
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