By Dr. Laurence Kotlikoff
Social Security’s retirement benefit calculator assumes zero real wage growth as well as zero inflation – in all future years!
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Not all Social Security advice is good advice. Any calculator that doesn’t explain its choice of planning horizon and its method of discounting (including its failure to discount) is not likely to have the right goods under its hood when it comes to actually sorting out what Social Security does and doesn’t allow and correctly calculating Social Security’s exceptionally, indeed unbelievably complex benefits.