Investopedia

Continue to Site »

Actuarial Deficit

Filed Under »
Dictionary Says

Definition of 'Actuarial Deficit'

The difference between future Social Security obligations and the income rate of the Social Security Trust Fund as of present. The Social Security program is said to be in actuarial deficit if the summarized income rate is less than the summarized cost rate of Social Security for any given valuation period. This situation is commonly referred to as the Social Security System being "insolvent."
Investopedia Says

Investopedia explains 'Actuarial Deficit'

Actuarial balance is calculated for 66 different valuation periods, beginning with the upcoming 10 year period and growing with each successive year up to the full 75 year projection. If at any point over the 75 year projection the anticipated costs of Social Security exceed the future value of the trust fund's income, that period would be deemed to be in actuarial deficit.

Articles Of Interest

  1.

    Maximize Your Social Security Benefits

    The plan's cost of living adjustments can provide protection against inflation.

  2. Avoid The Social Security Tax Trap

    Government benefits can cost you big money! Know the income thresholds before you file.

  3. 10 Common Questions About Social Security

    Find out everything you need to know about this program.

  4. Introduction To Social Security

    You've probably contributed to this fund, but will you reap the benefits? Find out here.

  5. Top 6 Myths About Social Security Benefits

    Misinformation on retirement benefits is common. We'll set the record straight.

  6. Enough Money To Not Worry

    Our retirement goals have not changed. We still want enough money to not have to worry about it. How we go about getting there, however, has been changed dramatically.

  7. Retirement: The One Thing Couples Shouldn't Do Together

    Staggering retirement can have both financial and emotional benefits for married couples.

  8. 5 Ways To Stretch Your Retirement Budget

    Living comfortably can be easy if you follow a simple plan.

  9. Immediate Annuities: More Income and Lower Taxes

    These instruments may shed their bad rap to bring you a hefty tax break.

  10. The Benefits Of Retiring Later

    Not only does retiring later give you more time to build your retirement nest eggs, but it may also keep you healthy.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center