How long can Medicare and Social Security keep paying out before the money dries up?
According to a new report, not as long as we hoped.
The latest projections show Medicare’s hospital insurance trust fund could run short by 2033 — three years sooner than last year’s estimate.
And Social Security’s trust funds?They’re expected to start falling short by 2034.
That would leave retirees with only 81% of their benefits unless Congress steps in.
What’s Behind The Shortfall?
Rising health care costs, an aging population, and recent legislation that bumped up Social Security benefits for some workers.
Critics say that move made things worse.
“It’s a political giveaway masquerading as reform,” said Romina Boccia from the CATO Institute.
Yet, politicians are stuck between voters who need these programs and a fiscal reality that says change is overdue.
“Congress must act to protect and strengthen the Social Security that Americans have earned,” urged AARP CEO Myechia Minter-Jordan.
So, what’s next? Either more money needs to flow in, or benefits will shrink.
“Any politician who doesn’t support increasing Social Security’s revenue is, by default, supporting benefit cuts.”
Nancy Altman of Social Security Works warned this.
One thing’s clear — Washington’s running out of time, and Americans are watching.
