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Is Social Security Bankrupt?

There is a lot of fear among American Baby-Boomers that Social Security is bankrupt and they won't get any money from the government for retirement. According to polls, 50% of Americans who are not yet retired believe Social Security will not exist long enough to pay their benefits when they retire. 

Looking at graphs like the one below this fear certainly seems to be justified...

However, what this graph doesn't tell you is that Social Security is not a trust fund. The money coming into the system goes directly to the people currently retiring and the SURPLUS is used to buy treasuries - this surplus is called the "Social Security Trust Fund Balance" as seen in the above graph. 

Note, we are currently at 2016, and Social Security is still at a huge surplus. Even if the program went into deficit, it would be a temporary situation caused by non-permanent demographic changes that would most likely correct themselves within a decade. 


There is no risk of the social security program running out of money in the near future.