Retirement

Question 1

Needs analysis

Answer 1

1) inflate the annual needs in today’s dollars (Just use inflation rate)
2) Determine what lump sum is needed at the beginning of retirement
(use real rate if it states income needed in “todays dollars”

Question 2

Fully Insured vs Currently insured

Answer 2

Fully insured - 40 quarters of coverage

Currently insured - attained 6 quarters of coverage. Eligible for lump sum death benefit ($255) for death of spouse or dependent. Eligible for surviving spouse death benefit if child is under 16. Eligible for a dependent benefit.

Question 3

Worker Benefits

Answer 3

Retirement benefits begin at age 62.
Disability benefits - must be disabled for 12 mos, expected to be disabled for 12 mos, or has a disability that will result in death and completed a 5 month waiting period.