According to an annual report released by the Treasury Department, the Social Security trust funds will be depleted in 2033, a year earlier than previously predicted. The trustees of the Social Security Old-Age and Survivors Insurance Trust Fund warned that there will only be enough funds to pay 77% of total scheduled benefits.
While the news is concerning, the trustees of Medicare’s finances noted that Medicare is in better shape and will have enough revenue to keep paying its bills until 2031, three years later than last year’s estimate. However, after 2031, Medicare will only be able to cover 89% of total scheduled benefits.
The report calls on Congress to take action to shore up Social Security and Medicare. Kilolo Kijakazi, acting commissioner of Social Security, urges lawmakers to address the projected trust fund shortfalls gradually and in a timely fashion.
“With informed discussion, creative thinking, and timely legislative action, Social Security can continue to protect future generations,” Kijakazi said.
The news is a call to action for the government to come up with solutions to address the issue before it’s too late. If nothing is done, millions of Americans could be left without enough financial support in their old age.
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