Question

What Is Actuarial Balance?

Answer 1

Answer:

• Actuarial balance is the difference between future Social Security obligations and the income rate of the Social Security Trust Fund as of the present.

Explanation:

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 out of actuarial balance.