The financial outlook for Medicare and Social Security has worsened, with both programs projected to run short of funds sooner than previously expected, according to a new report from their trustees.
Medicare’s hospital insurance trust fund is now projected to be depleted by 2033, three years earlier than last year’s estimate. Social Security’s trust funds, which support retirement and disability benefits, are forecast to run out by 2034, one year earlier than previously projected. After that, Social Security would only be able to pay 81 percent of promised benefits, and Medicare could cover just 89 percent of hospital-related costs.
The shift is largely due to rising healthcare expenses and legislative changes impacting Social Security. While experts stress the need for prompt legislative action to address these growing shortfalls, political gridlock and reluctance to touch these programs have long stalled reform efforts.
Despite the grim forecast, officials emphasize that the programs won’t disappear entirely. Benefits would continue, just at reduced levels. With over 68 million Americans relying on Medicare and millions more on Social Security, the pressure is mounting for policymakers to act before the burden falls on future beneficiaries. Read more about this projection shift on Yahoo News.
Social Security recipients can’t take much more bad news. Benefits are already too low, and continued cuts only make it more challenging for millions of Americans to survive in their retirement years. This is why we are strongly encouraging Congress to pass the Elder Relief Act. Learn more here.