What Is the Social Security Trust Fund?

When taxes are deducted from your paycheck, some of the money is deposited into the Social Security trust fund. This fund is responsible for paying out benefits to retirees, disabled workers and other eligible groups. Here’s what you need to know.

What is the Social Security trust fund?

The Social Security trust fund is the federal government's account for managing contributions to the Social Security program.

The Social Security program was established in the 1930s to provide workers with income after retirement. Over time, it expanded to support not only retirees but also disabled workers and the families of deceased workers.

The Social Security trust fund consists of two separate accounts:

• Old-Age and Survivors Insurance (OASI) Trust Fund
• Disability Insurance (DI) Trust Fund

Old-Age and Survivors Insurance Trust Fund

OASI was created by a 1939 amendment to the 1935 Social Security Act. The OASI Trust Fund is responsible for paying monthly benefits to:

• Retired workers
• Spouses of retired workers
• Children of retired workers
• Survivors of deceased insured workers

Disability Insurance Trust Fund

The DI Trust Fund became effective in 1957 and was also created by an amendment to the Social Security Act. The fund is responsible for paying monthly benefits to:

• Disabled workers
• Spouses and children of disabled workers

The OASI and DI trust funds collectively provided benefit payments to about 67 million people in 2023, including 58.6 million from the OASI fund and 8.5 million from the DI fund.

How does the Social Security trust fund work?

The Social Security trust funds were created to hold and manage contributions until they are distributed as benefits. The Department of the Treasury manages the funds, and a board of trustees oversees their financial operations.

The money in the funds can be used only for two purposes:

• Paying out Social Security benefits to those who are eligible
• Paying for the administrative costs of running the program

The trust funds are primarily financed through payroll taxes. Employers and employees each contribute 6.2% of wages toward Social Security, while self-employed workers pay 12.4%.

How is the Social Security trust fund invested?

By law, the money in the Social Security trust funds must be invested in U.S. government-backed securities. These investments are considered “special issue” securities, meaning they are only available to the trust funds.

A market rate of interest is paid to the trust funds on the bonds in which they are invested. When the bonds mature or are needed to pay benefits, the Treasury redeems them.

How much money is in the fund?

The Social Security Trustees Report for 2024 estimated that the current combined OASI and DI trust fund cash reserves are about $2.8 trillion.

Where can I find my Social Security trust fund balance?

You can view your Social Security statement online by visiting SSA.gov and creating a “my Social Security” account. Your statement will include your projected future Social Security benefits and earnings history.

If you're 60 or older and don’t have an online “my Social Security” account, the Social Security Administration will mail your statements three months before your birthday. It’s recommended to create an online account, as it provides enhanced security and faster access to important updates and notices about your Social Security benefits.

The Social Security Administration provides a sample Social Security statement to help you understand what’s included in the document.

How long will the Social Security trust fund last?

The 2024 annual trustees report says the combined trust fund reserves could be depleted by 2035. However, even if that happens, Social Security payments won’t stop. According to one projection, the trust fund’s continuing income would be enough to pay 83% of the program cost after 2035, declining to about 73% by 2098.

Though the future of Social Security may seem uncertain, the government is considering various options to restore its financial health. Legislation may ultimately be enacted to restore the fund’s long-term solvency.

Regardless of what happens with the Social Security trust fund, it’s a good idea to plan for your retirement in other ways, such as investing in a 401(k) or individual retirement account (IRA). Diversifying your retirement income sources will help ensure financial stability after you leave the workforce.