Social Security’s retirement trust fund faces funding shortfall earlier than expected
Summary
Social Security’s retirement trust fund is expected to run out of money in 2032, one year earlier than last year’s estimate. Medicare’s hospital insurance fund will face a shortfall in 2033, the same as previously predicted, which means these programs may pay reduced benefits after those dates.Key Facts
- Social Security’s retirement trust fund will face a funding shortfall starting in 2032.
- This is one year earlier than last year’s projection of 2033.
- Medicare’s hospital insurance trust fund is expected to be unable to pay full benefits beginning in 2033.
- After trust fund depletion, Social Security will still pay benefits but at a reduced rate, covering about 83% of scheduled payments.
- Rising healthcare costs and government spending contribute to the financial challenges of both programs.
- About 70.1 million people are enrolled in Medicare.
- The Trump administration says it is committed to protecting and improving Social Security.
- Lawmakers have delayed making changes to Social Security and Medicare despite long-standing financial concerns.
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