U.S. SOCIAL SECURITY ADMINISTRATION
The current Social Security system works like this: when you work, you pay taxes into Social Security. The tax money is used to pay benefits to:
- People who already have retired;
- People who are disabled;
- Survivors of workers who have died; and
- Dependents of beneficiaries.
The money you pay in taxes is not held in a personal account for you to use when you get benefits. Your taxes are being used right now to pay people who now are getting benefits. Any unused money goes to the Social Security trust funds, not a personal account with your name on it.