If no congressional action is taken, Social Security trust funds will become insolvent by 2033, a year sooner than expected. Lawmakers must aact to preserve the health insurance program, which will be exhausted by 2031.
This is according to the Social Security Board of Trustees’ most recent report.
The aging population, massive immigration, and reduced birth rates have made the pyramid program unsustainable.
The Hospital Insurance Trust Fund, which pays for inpatient care and hospital services for Medicare trustees, will be able to pay 100% of total scheduled benefits for eight more years, three years longer than was reported last year.
“Lawmakers have many options for changes that would reduce or eliminate the long-term financing shortfalls,” the board wrote. “We urge Congress to consider such options for both Medicare and Social Security, like the proposal for Medicare in the President’s FY24 Budget. With each year that lawmakers do not act, the public has less time to prepare for the changes.”
By 2031, the program can only pay for 89% of total benefits. It’s quicly downhill from there.
The combined reserves of Social Security and Medicare will be insolvent by 2034. Both programs are used as a political cudgel every election, and nothing gets done.
Republicans and Democrats disagree on how to handle the problem. Democrats want to raise taxes on the rich, which will inevitably reach the non-rich. Republicans look to privatizing some of the programs and/or raising the age of retirement.