What is the current earnings rate for the Social Security trust funds from government securities? Historical rates of return?
In 1997, the average rate of return on total assets of the trust funds was 7.5%. In the past, some securities held by the trust funds had a rate as high as 13.5%. 20.9 Compared to the interest earned by the trust funds and projected in the future cost estimates, what return is needed to solve the funding problem? Could, realistically, an increase in earnings alone fix the problem? It is unlikely that any possible rate of return could solve all of the funding problems, even though it might solve a significant part of the problems, especially if other changes were made which would build up a large fund balance.
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