Do you remember getting your first paycheck? Along with the thrill of finally making money, you may have noticed a deduction or two from your earnings. One of those deductions was the Social Security tax, which pays into a fund for retirement and disability benefits. You may think the money you pay into Social Security is locked away in a vault somewhere. However, this isn’t true.
How the Government Borrows From Social Security
The Federal Government can and does borrow from the Social Security Trust Fund. It’s a little-known fact, but it’s true – the government uses these funds to pay its bills. That means the government is using the money you put into Social Security to help fund other programs, such as defense and infrastructure.
However, one part of the equation is often left out. While the government can borrow from Social Security, it also has a responsibility to pay back those funds with interest. This can serve as a source of protection for the Trust Fund, as it ensures that there will always be money available to pay out benefits.
Yet despite this protection, some worry that the government’s borrowing could have a negative impact on their Social Security benefits. And it’s clear that Social Security is in need of help – estimates put the date of Social Security insolvency (when funds will run out) at 2033 – just a decade off.
The Seniors Center’s Plan to Fix Social Security Solvency
The Seniors Center believes it’s important to protect this Trust Fund and ensure that benefits are paid out for generations to come. We have proposed a plan that would address Social Security solvency issues and ensure sustainable benefits for the future.
To make our plan heard in Washington, we need your help. Add your name to our online petition today to make your voice heard. You can also follow us on Twitter and Facebook for more updates!
