People have faithfully paid into Social Security for decades. But we constantly hear about how the money is running out. This doesn’t make sense, mathematically. That is, until you consider that this trust has been raided by Washington.
This brings to mind another question: Where has the money gone?
For the answer, we reference The Seniors Center founder Dan Perrin, whose answers to many Social Security questions can be found here. On this specific topic, he had this to say:
Back in 1983, in an act of bipartisanship that we would never see today, Congress passed the recommendations of the National Commission on Social Security Reform. President Ronald Reagan and the leaders of both parties agreed to increase payroll taxes to save money for the retirement of baby boomers.
Their plan worked. In fact it worked so well that the Social Security Trust Fund got into the Billions and then the Trillions of Dollars. There was a big problem, though. It was like the money in our Social Security Trust Fund was burning a hole in the pockets of Members of Congress. They couldn’t stop themselves until they spent every dime. In fact, today, the U.S. Treasury owes the Social Security Trust Fund over $2.85 Trillion.
The money has gone into the spending plans of politicians. This means it’s not in the accounts of future retirees. Want further insight into this question and others? Read more at the link above.
