Will Social Security Really Run Out of Money in 2035? Here's How It Could Last Decades Longer.

When it comes to projecting Social Security's financial future, the Social Security Trustees Report contains three sets of estimates that make different assumptions about things like future birth rates, economic growth, inflation, wage growth, interest rates, and more. They are known as the intermediate, low-cost, and high-cost scenarios.All of the headline estimates about Social Security's future, including the projection that it will run out of money in the trust funds by 2035, are based on the intermediate estimates.Just to name a few of the assumptions made in the intermediate scenarios, it assumes that the total fertility rate (number of children per woman) will be 1.9 in 2040 and beyond, with 1.63% annualized economic growth, 2.4% annual average inflation, 3.56% annual wage growth, a 4.5% unemployment rate, and a 2.3% average interest rate on the Treasury securities Social Security holds. However, there's no guarantee that these will be the actual numbers, and that's why it's important to know the other two scenarios and what they mean.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool