Social Security Trust Fund to Be Tapped Out in 2033: Report By Yuval Rosenberg (The Fiscal Times) / Mar 31 2023
As America ages, retirees on Social Security face steep automatic cuts starting in 2033 while the trust fund for Medicare’s hospital coverage is on pace to be exhausted by 2031, according to annual reports by the programs’ trustees released on Friday.
Social Security’s old age and survivors insurance trust fund is now projected to run out one year sooner than projected as of last year, with ongoing income sufficient to pay only 77% of benefits in 10 years’ time. If the programs’ retirement and disability trust funds were combined, they would be unable to pay full benefits as of 2034, one year earlier than projected last year. After that, benefits would face a 20% cut unless Congress acted to close the gap.
The worsening outlook is the result of weaker economic projections, with expectations for gross domestic product and labor productivity lowered by about 3% compared to last year’s forecast.
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