"I'm an auto mechanic and have earned $40,000 per year, adjusted for inflation, for 34 years and am age 67: I've only worked for 34 years total in my career. I'd like to retire now, but was just offered a special assignment for 1 year that would pay $125,000." What are two considerations for this person to include in calculating his Social Security benefits if he accepts the special assignment and retires in one year rather than now? Please provide numerical support for one (or both) of your answers. Full credit can be earned if (correct) numerical answers are shown on only one of the two (correct) requested answers to this question.
Person can accept the special Assignment as it create his value by $ 125,000 for a year. Before he retires he is earning $ 40,000 per year and by accepting this it create his value by $ 85,000($ 125,000-$40,000).
His earning capability increases by accepting this assignment though the retirement of the person extends.
It is advisable to accept this assignment.
By non accepting this he might retire but the opportunity income will be lossed by him.
Conclusion: It is advisable to accept the special assignment.
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