Social Security and Medicare Face Insolvency Within 10 Years, Forcing Benefit Cuts if Left Unaddressed

Social Security's trust funds are projected to be depleted within the next decade, which could trigger automatic benefit cuts. This would impact current and future retirees.
Once the trust funds are gone, payroll tax revenue alone would fund benefits, leading to the projected automatic cuts.
Medicare's Hospital Insurance trust fund is also expected to be tapped out within 10 years, which could disrupt healthcare services.
The next President will need to address Social Security and Medicare insolvency, but the current frontrunners have said they won't touch Social Security.
Bipartisan commissions have previously helped extend the life of Social Security's trust fund. Experts propose similar bipartisan efforts to find solutions now.

foxbusiness.com

Relevant topic timeline:

8/19/2023

Christie: Social Security, Medicare cuts are a necessary ‘political risk’ in today’s economy

### Summary Former New Jersey Gov. Chris Christie is advocating for changes to Social Security and Medicare benefits for young people, stating that without these changes, the programs could run out of money for everyone in about a decade. ### Facts - 💰 Changes are necessary for Social Security and Medicare as the country faces a rising national debt. - 💔 According to Christie, both programs will be bankrupt within the next decade. - 💸 If Social Security fund becomes insolvent in 2033, benefits for the average retired couple could drop by more than $17,000 per year. - 📅 Christie proposed raising the benefit eligibility age for Americans currently under 50 years old. - 💰 Christie also suggested implementing means testing for benefits based on income threshold. - 📊 Entitlement cuts were part of a larger federal budget debate in March, but Republicans eventually agreed not to touch Social Security and Medicare. - 💭 Christie believes the conversation about these changes is necessary but has been avoided by other candidates. - 📉 Christie is currently polling fifth among GOP primary candidates with about 3 percent support. Source: The Hill

8/24/2023

75% of people ages 50 and up worry Social Security will run out of money in their lifetimes, survey finds

About 75% of Americans aged 50 and older worry that Social Security will run out of funding in their lifetimes, compared to 66% in 2014, according to a survey by Nationwide Retirement Institute, as concerns grow with the depletion dates of the program's funds approaching.

9/5/2023

A Huge Threat to the U.S. Budget Has Receded. And No One Is Sure Why.

Medicare spending per beneficiary has nearly leveled off over the past decade, saving taxpayers a significant amount of money, but the reasons for this slowdown remain unclear and there are concerns that it may not last.

9/22/2023

Social Security Benefit Cuts Loom if Lawmakers Can't Agree on Reform Plan

Social Security beneficiaries face the possibility of a 20% across-the-board benefit cut within the next decade due to a looming funding shortfall, prompting calls for Congress to take action.

10/15/2023

Social Security Benefits to Rise Modestly in 2024 Due to Inflation

The Social Security Administration announced a 3.2% increase in benefits for retirees in 2024, costing the government billions of dollars, in order to offset inflation and help beneficiaries cover expenses.

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Posted 9/28/2023, 12:56:21 AM