What is the Standard Payment Amount (PIA) of Sue who begins receiving benefits at age 62, with a PIA of $1000?

To determine the Standard Payment Amount (PIA) for Sue, who begins receiving Social Security benefits at age 62 with a primary insurance amount (PIA) of $1000, it is important to consider the reduction that occurs when benefits are taken early.

Social Security benefits are designed to be taken at full retirement age (FRA), which for many individuals is around age 66 to 67, depending on their birth year. If an individual opts to start receiving benefits before reaching this age, their benefits are reduced to account for the longer period over which they will receive them.

In Sue's case, starting benefits at age 62—often referred to as early retirement—leads to a substantial reduction in her monthly benefit amount. The standard reduction for starting benefits at age 62 is calculated as about 25% for someone whose full retirement age is 67. For Sue, with a PIA of $1000, this results in a benefit amount of approximately $750 after the early retirement reduction has been applied.

Thus, the correct answer reflects the adjusted benefit amount that Sue will receive due to starting her benefits early.