Social Security on Track to Run Out by 2033

Social Security, on Track to , Run Out by 2033.

NPR reports that the Social Security program in the United States is predicted to run out in the next decade.

According to forecasts issued on March 31, a key trust fund for Medicare is on track to run out of funds by 2031 as well.

The projections by trustees of both programs highlight shaky financial footing.

NPR reports that Social Security is primarily funded by payroll taxes and supplemented through a trust fund.

Since 2021, the program has been paying out more in benefits than the amount of money coming in annually.

The trust fund that the program relies upon is now expected to be completely depleted by the year 2033.

NPR reports that unless steps are taken to shore up Social Security, 66 million recipients would see benefits cut by a significant 23 to 25 percent.

The loss of the Medicare trust fund would result in a reported 11 percent cut to health care providers.

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According to Treasury Secretary Janet Yellen, both trust funds need to be propped up to avoid deep cuts to benefits and payments to providers.

Social Security and Medicare are two bedrock programs that older Americans rely upon for their retirement security.

, Janet Yellen, United States Treasury Secretary, via NPR.

The Biden-Harris Administration is committed to ensuring the long-term viability of these critical programs so that retirees can receive the hard-earned benefits they're owed, Janet Yellen, United States Treasury Secretary, via NPR.

The Biden-Harris Administration is committed to ensuring the long-term viability of these critical programs so that retirees can receive the hard-earned benefits they're owed, Janet Yellen, United States Treasury Secretary, via NPR