The Social Security Administration (SSA) releases estimates of their accounting, but never actual solid numbers; causing many to contemplate that there is fraud occurring within the system.
Social Security checks are sent out monthly to disabled or retired workers, with 1 out of every 6 Americans receiving a Social Security check. Social Security works through taxing workers a specific percentage of their yearly pay, with any surplus of money being deposited into the Treasury’s trust funds.
However, today more money is being paid out to beneficiaries than is being collected by current workers. To make up for the deficit, the SSA withdraws money early from their trust funds and deposit a non-marketable security known as a intragovernmental holding. This is essentially an IOU and is included in the total National Debt of the United States.
In order to redeem the money already borrowed, the Treasury must then borrow from the global bond market. Taxpayers are now held accountable for this newly acquired debt and its interest. In essence, the taxpayers are now paying twice for their Social Security, as their tax payer money goes toward both the National Debt and to Social Security.
Furthermore, the deficit of the trust funds are expected to grow as the baby boomers become eligible for benefits. the SSA estimates their reserves will be exhausted in 2037; though the numbers given as estimates by the SSA themselves may show otherwise; causing Americans to believe there is severe cases of fraud occurring within the Social Security system.
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