The Social Security Trust Fund Explained in Simple Terms

There’s been a lot of talk about the Social Security trust fund of late. The trust fund is the account used to pay benefits, and it is expected to be depleted in less than 10 years. At that time, Social Security will be forced to reduce benefits.

To fully understand why Social Security is facing this funding deficit, it’s critical to understand its trust fund and how it works. To help facilitate that, the Center on Budget and Policy Priorities put out a wonderful informational piece explaining how the trust fund works, its current financial status, how the funds are invested, what happens to any surpluses, and why it’s important to address this solvency situation sooner rather than later.

We are in total agreement. The time has come for Congress to shore up Social Security and ensure it’s there for retirees far into the future.

The Seniors Trust is committed to improving the lives and financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.