Are the Social Security trust funds left untouched and saved exclusively for Social Security purposes?
Social Security contributions which are not needed to pay current benefits are invested in government securities which are required by law to have maturity dates with due regard to the needs of the trust funds. The government also pays interest to the trust funds, at a long term rate determined by law. The government uses the invested funds to finance other government spending. The government owes the money which the trust funds have loaned to it and the government will have to repay it as the securities come due.
Related Questions
- COULD REVISING THE SOCIAL SECURITY TRUST FUNDS INVESTMENT POLICIES PROVIDE MORE RESOURCES FOR THE RETIREMENT OF THE BABY BOOMERS?
- Does the U.S. Government use the Social Security Trust Funds surpluses for purposes other than Social Security?
- Are the Social Security trust funds left untouched and saved exclusively for Social Security purposes?
