Social Security’s Cash Reserve is Shrinking

The clock is ticking to turn things around and shore up the Social Security Trust Fund. A report by GoBankingRates.com found that Social Security’s investments are losing more than they bring in. Social Security’s cash reserves decreased by more than $31 billion for the first time in 40 years.

It’s common knowledge that Social Security if funded by payroll taxes. The combination of an aging baby boomer population and the high unemployment stemming from the pandemic are accelerating its trust fund depletion. The Board of Trustees warns Social Security’s cash reserves could shrink to just $1.35 trillion in the next eight years — at that time monthly benefits could be reduced if no action is taken now.

The Seniors Trust is working diligently to protect Social Security. We feel the best way to do this is through passage of the Social Security Expansion Act. This landmark bill will buttress the long-term solvency of Social Security by expanding benefits for seniors — not cutting them!