Social Security's Trust Funds Could Run Dry in 2035. Here's Why That's a Big Deal.
Each year, the Social Security Trustees release a report on how the program is faring financially. The 2020 report was 276 pages in length, which means the typical American won't be reading it from cover to cover. But one major takeaway from that report is that the program's combined trust funds are expected to run out of money in 2035. And that could be disastrous for current and future beneficiaries alike.
Social Security has two separate funds it stores cash reserves in:
Money gets into these funds when Social Security collects revenue (whether from payroll taxes on wages or taxes on benefits). Much of that money, of course, goes right back out to pay beneficiaries, but when there's a surplus, Social Security can pad its trust funds and invest that cash for added growth. In fact, the program is actually required to invest its excess cash.
Source Fool.com
