When to Start Taking Social Security – An Engineering Economics Problem
- Conference
- Location
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Montreal, Quebec, Canada
- Publication Date
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June 22, 2025
- Start Date
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June 22, 2025
- End Date
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August 15, 2025
- Conference Session
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Elements of decision making in engineering economics education
- Tagged Division
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Engineering Economy Division (EED)
- Page Count
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9
- Permanent URL
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https://peer.asee.org/57344
Paper Authors
Matt Gordon University of Denver
Dr. Matt Gordon is Professor of the Department of Mechanical and Materials Engineering. His research areas include numerical and experimental plasma physics, chemical and physical vapor deposition, electronic packaging, and bio-medical engineer
Daniel D Auger University of Denver
Daniel Auger is a Visiting Professor of Practice, a Consultant and an experienced R&D executive. He obtained his PhD in Mechanical Engineering from the University of Leeds in the UK and his MASc and BASc from the University of Waterloo in Canada. His background is primarily in biomechanics, tribology, mechanical design, materials and Systems Design. He is a former Vice President of R&D and Distinguished Engineering Fellow from DePuy Synthes, Johnson and Johnson where he worked for over 28 years both in the USA and the United Kingdom. Throughout his career Dan has architected multigenerational product platforms, lead projects, built strategy and delivered multiple medical device innovations from research and concept through to the market. He is an inventor with 30+ patents and an author on some 50+ publications.
Abstract
Most engineering programs require that students take a course in engineering economics. To better motivate our students to learn and apply the material taught in this course, we introduced an open-ended problem based on a real scenario involving social security. Using the data from two of the professors’ social security benefit statements, students were asked to determine the optimal age at which to start these benefits.
For those unfamiliar with the choices, social security benefits can start as early as 62 or as late as 70. And the longer one waits, the more one receives. For example, the table below shows the potential benefit received by each professor depending upon the age at which they start.
Starting Age to receive benefits Professor 1 Monthly Benefit Professor 2 Monthly Benefit 62 $2649 $2280 63 $2875 $2472 64 $3076 $2682 65 $3338 $2956 66 $3599 $3236 67 $3860 $3525 68 $4044 $3606 69 $4356 $3955 70 $4799 $4584
Students were first asked to individually make an argument for the optimal age to start for each professor, whether they were the same or not, and to account for both the potential life expectancy of the recipients and the assumed interest rate. Then students were put in groups based on these choices (3 groups were formed with the most common responses being early 62-64, middle 65-67, or late 68-70). They were then asked to refine their arguments, and the project culminated with an in-class debate.
The authors found that this problem-based learning exercise was very beneficial in motivating the students to better learn and apply the course material. And, as a bonus, the instructors had a much better idea as to when to start their social security benefits!
Gordon, M., & Auger, D. D. (2025, June), When to Start Taking Social Security – An Engineering Economics Problem Paper presented at 2025 ASEE Annual Conference & Exposition , Montreal, Quebec, Canada . https://peer.asee.org/57344
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