Russell Gloor(National Social Security Advisor at the AMAC Foundation): I’ve heard that Social Security funds were moved to General Fund of the government. Does this mean Social Security is now an entitlement controlled by the government? Many believe that these funds should be invested to grow our savings rather than being handled by the government.
I personally invested my 401(k) and savings, which performed well during the Trump years, but now I’m trying to catch up. I mention this because my investment returns are higher than my Social Security benefits.
Who Manages Social Security Funds?
Dear Questioning Senior: I want to clarify that Social Security funds were moved to General Fund of the government, is a myth and this is a common misconception that has been widely debunked. Social Security operates as a separate program with its own trust funds. Also check out Whether Baby Boomers Will Drain Social Security Funds?
A board of Social Security Trustees is responsible for monitoring these funds. This board consists of the Secretaries of Treasury, Labor, and Health & Human Services, along with the Commissioner of Social Security and two Public Trustees
The Future of Social Security
The report reveals that Social Security’s reserves are projected to run out by approximately 2033, which could result in a 21% benefit reduction for all recipients unless Congress enacts reforms. Despite repeated warnings from the Trustees, lawmakers have yet to reach a bipartisan solution. The Association of Mature American Citizens (AMAC) has consistently proposed solutions to restore Social Security’s solvency and will continue advocating for reforms in the 119th Congress, which convened on January 3, 2025.
Key Facts About Social Security Funds
| Fact | Explanation |
| Funds Not Moved to General Treasury | Social Security operates under its own trust funds. |
| Managed by Trustees | Overseen by a board including government officials and public trustees. |
| Projected Shortfall in 2033 | Without reform, benefits could be cut by 21%. |
| AMAC’s Advocacy | Continues to push for Congressional action to protect benefits. |
Importance of Retirement Planning
We appreciate your concern and commend you for wisely managing your 401(k) investments. Many retirees rely on their personal savings to supplement Social Security, as the program was never designed to fully replace retirement income. Planning ahead, as you have, is an essential strategy for financial security in retirement and Also Check out Trump Administration Proposes Eliminating Federal Taxes on Social Security Benefits
FAQs
1. Has Social Security money ever been moved to the General Fund?
No, Social Security funds have never been transferred to the General Fund. The program operates with its own trust funds.
2. When will Social Security’s reserves run out?
According to the latest projections, Social Security’s reserves are expected to run out by 2033, potentially leading to a 21% benefit reduction.
3. Who oversees the Social Security funds?
A board of Trustees, including government officials and public trustees, is responsible for monitoring Social Security funds and providing an annual financial review.
Social Security funds were moved to General Fund of the government: The Conclusion
Despite common misconceptions, Social Security funds remain in separate trust accounts, not the General Fund. Understanding the facts is essential for informed retirement planning.