What are the reasons for the loss of social security funds?

1. Reasons for the loss of social security funds: The loss of social security funds is actually caused by social phenomena, that is, the arrival of an aging society. The number of retirees has increased too much, and their life expectancy has generally increased. Due to the influence of inflation, their pension will increase every year. Therefore, when the social security fund's expenditure is too large and the new insurance can't make up the expenditure gap, it can be broadly said that the social security fund is losing money.

2. Brief introduction to the concept: The National Social Security Fund (hereinafter referred to as the Social Security Fund) refers to the social security fund managed by the National Social Security Fund Council (hereinafter referred to as the Council) and centrally managed by the central finance, which consists of funds allocated for reducing state-owned shares and equity assets, funds allocated by the central finance, funds raised by other means approved by the State Council and their investment income. [ 1]