Social Security and Medicare Face $175 Trillion Shortfall, Potentially Unable to Pay Full Benefits Within 10 Years

Medicare and Social Security face a $175 trillion funding shortfall, threatening their ability to pay full benefits within a decade.

If current trends continue, the programs may not exist when today’s children reach retirement age without major reforms.

Social Security funds expected to run out in 2033 based on Congressional Budget Office projections, potentially forcing a 25% cut in benefits.

The number of retirees drawing Social Security is increasing while the pool of workers paying into it is shrinking.

Making matters worse, inflation is further straining the programs; 2023 saw the highest annual cost-of-living increase (8.7%) for Social Security since 1981.