You are 55 years old today. You are planning for your retierment, and need to decide wether you should take your social security at age 62 and reviece a monthly payment of $1800 or wait until full retierment age of 67 and recieve a monthly payment of $2560
If you assume you'll live the average life expectancy of 85 years, what is the value of each option at age 55? Which option should you choose? Assume a discount rate of 4%
Option 1 (Retire at 62): Show work
Option 2 (Retire at 67): Show Work
What must your life expectenvcy assumption be in order to take the other option?