A portion of each paycheck we receive is sent to the federal government for Social Security. Where does this money go?
The money is kept in two trust funds – one for retirees (the Old Age and Survivors Insurance Trust Fund) and one for people who are unable to work due to a disability (the Disability Insurance Trust Fund). The trust funds can only be used to pay Social Security benefits; the funds cannot be used to pay for other government programs.
Tax payments to the Social Security trust funds are intended to be enough to cover outgoing benefits to those who’ve retired or are disabled. When there’s more money coming in than being paid out, that additional money goes into savings. We’ve been building up savings since the early 1980s, after Congress passed legislation changing Social Security benefits, coverage, and financing.
