Understanding the Social Security Trust Fund

When President Franklin Delano Roosevelt proposed the Social Security program nearly 100 years ago, its purpose was to insure against old age poverty and what he called “… the hazards and vicissitudes of life.” Today, the program, which was supposed to be the lifeblood for so many older Americans, faces financial issues of its own. If nothing changes, the Social Security trust fund — that’s the money used to pay benefits — will reach a deficit by 2032.

This is happening for a number of complicated reasons, including bonds, taxes, and the aging Baby Boomer generation entering retirement. The Shepherd Express did a deep dive into Social Security and does a great job of explaining its financial woes and what can be done to fix them.

The Seniors Trust believes one of the keys to Social Security solvency is shoring up the trust fund and the best way to do that is through passage of The Social Security Expansion Act. This landmark piece of legislation will give retirees a $200 per month benefits boost, establish a fair annual cost-of-living adjustment (COLA), and secure long-term solvency for another 75 years.