Payoff Function Graph Survival Cutoff Graph Survival Cutoff Table

Your age is 62.
Your savings is 145350 points.

As shown in the below table, the amount of Social Security benefits you would receive each period will depend on when you claim the benefit. You will receive zero Social Security benefits before claiming, and receive the same annual benefits since claiming. The benefit formula is designed that on average, the Social Security system will neither lose nor make money no matter when benefits are claimed.

Claiming Age	Claiming period	Benefit level per period
62	1	14887
63	2	15865
64	3	16938
65	4	18117
66	5	19418
67	6	20858
68	7	22457
69	8	24241
70	9	26238

Do you want to claim benefits this period?

Yes

Period	Survival Cutoff	Expected periods remaining	Period	Survival Cutoff	Expected periods remaining
1	96	16.09	21	91	7.37
2	96	15.72	22	91	7
3	96	15.33	23	90	6.59
4	96	14.93	24	89	6.22
5	96	14.51	25	88	5.86
6	96	14.07	26	87	5.52
7	96	13.62	27	86	5.2
8	96	13.14	28	85	4.88
9	96	12.65	29	83	4.57
10	95	12.13	30	82	4.3
11	95	11.72	31	80	4.02
12	95	11.28	32	79	3.78
13	95	10.83	33	77	3.52
14	94	10.34	34	75	3.27
15	94	9.94	35	73	3.02
16	94	9.51	36	71	2.77
17	93	9.05	37	70	2.49
18	93	8.66	38	68	2.14
19	93	8.24	39	67	1.67
20	92	7.78	40	0	1

Note: "Expected periods remaining" is calculated based on the cutoffs and includes the current period. The displayed cutoff numbers reflect both real life mortality risk and intertemporal discounting of amounts received in the future.

Task 1, period 1