Actuarial Balance
Definition of 'Actuarial Balance'The difference between future Social Security obligations and the income rate of the Social Security Trust Fund as of present. The Social Security program would be said to be in actuarial balance if the summarized income rate is inline with the summarized cost rate of Social Security for any given valuation period.Commonly referred to as the "solvency" of the Social Security System. |
|
Investopedia explains 'Actuarial Balance'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 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 out of actuarial balance. The difference would theoretically be the difference in the tax rate of Social Security provided from FICA. |
Related Definitions
Articles Of Interest
-
Avoid The Social Security Tax Trap
Government benefits can cost you big money! Know the income thresholds before you file. -
Introduction To Social Security
You've probably contributed to this fund, but will you reap the benefits? Find out here. -
Special Trusts For Special Needs
If you or someone you love has a disability, these trusts can help ease the cost of care. -
Break Out Of Annuity Prison
Annuities offer security but also lock up your cash. The secondary market could be your key. -
Top 6 Myths About Social Security Benefits
Misinformation on retirement benefits is common. We'll set the record straight. -
5 Ways To Protect And Grow Your Retirement: Whether You’re 45 Or 75 Or Somewhere In Between
Investors who take steps now can shield themselves from the coming challenges thrust upon retirees. -
What's The Point Of Owning All This Stuff?
Are you a portfolio hoarder, hanging on to poor performers and investments that no longer match your objectives? It's time to purge those investments and put that money to use to match today’s ... -
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. -
Retirement: The One Thing Couples Shouldn't Do Together
Staggering retirement can have both financial and emotional benefits for married couples. -
5 Ways To Stretch Your Retirement Budget
Living comfortably can be easy if you follow a simple plan.
Free Annual Reports