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Professional managers would invest the GRA money at low fees, and the accounts would have a guaranteed inflation-adjusted rate of return, provide automatic annuities, and prevent withdrawals before retirement.
However, the calculation can take just one step by using an inflation-adjusted rate of return where both the present value and future value are expressed in current dollars.
An inflation-adjusted rate of return can be used instead (the Social Security model assumes a 3% inflation-adjusted rate of return).
This is a two-step process: Step 1: Calculate the inflation-adjusted rate of return factor: