Natalia begins receiving her Social Security benefits at age 62 Her PIA is $2,500 , but since she started benefits early, she receives 70% of her PIA. The next year, a 3% cost-of-living adjustment (COLA) is applied. What will be her new monthly benefit?
Answer
A
2 dollars comma 500 point 0 0
B
1 dollars comma 750 point 0 0
C
1 dollars comma 700 point 0 0
D
1 dollars comma 802 point 5 0
Explanation
Her early benefit is 70% of her $2,500 PIA: $2,500 × 0.70 = $1,750 per month. Applying the 3% COLA gives $1,750 × 1.03 = $1,802.50, so the new monthly benefit is $1,802.50 (choice B).
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