WASHINGTON (AP) 鈥� 鈥檚 retirement trust fund is projected to face a funding shortfall in 2032, a year earlier than last year鈥檚 projections, according to an annual report released Tuesday, while 鈥檚 hospital insurance trust fund will be unable to pay full benefits in 2033, which is unchanged from last year鈥檚 estimate.
Rising and government spending have contributed to a projected depletion date that is less than 10 years from now.
The looming challenge for the programs is a partial funding gap, not a collapse. Even after trust fund depletion, the system will continue issuing benefits, albeit at reduced amounts.
Last year, Medicare’s hospital insurance trust fund go-broke date the year before that, according to the report from the programs鈥� trustees.
Meanwhile, Social Security鈥檚 combined trust funds 鈥� which cover old age and disability recipients 鈥� will be unable to pay full benefits beginning in 2034, unchanged from the 2025 report. After that, incoming revenue would cover about 83% of scheduled benefits.
Social Security Commissioner Frank Bisignano said the Trump administration is 鈥渃ommitted to protecting and strengthening Social Security鈥� and 鈥渆liminating waste, fraud, abuse and ensuring program integrity.鈥�
The report states that the new funding shortfall is mainly the result of lower projected birth rates, reduced immigration and reduced trust fund revenue due to the costs of Republican’s massive tax and spending bill that was last summer.
Nancy Altman, president of the Social Security Works advocacy group, said the latest report takes 鈥淒onald Trump鈥檚 second term policies into account: A tax bill that largely benefited the wealthy, economy-wrecking tariffs, a needless war with Iran, and hostility to immigrants. All of these have reduced the amount of money going into Social Security, weakening the system鈥檚 finances.鈥�
The trustees, who include the treasury secretary, labor secretary, health and human services secretary and the Social Security commissioner, say the latest findings show the urgency of needed changes to the programs, which have faced dire financial projections for decades. But making changes to the programs has long been politically unpopular, and lawmakers have repeatedly kicked Social Security and Medicare鈥檚 troubling math to the next generation.
AARP’s CEO Myechia Minter-Jordan said in a statement that the latest numbers 鈥渟hould be鈥痑 wake-up call. Congress needs to act.”
鈥淎mericans have worked hard and paid into Social Security their entire lives, and they deserve to count on it when they retire,鈥� she said. 鈥淣o鈥痜amily鈥痵hould鈥痵ee any鈥痗uts to what they鈥檝e earned in Social Security.鈥��
About 70.1 million people are enrolled in Medicare, the federal government鈥檚 health insurance that covers those 65 and older, as well as people with severe disabilities or illnesses.
Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67. The eligibility age of 65 has never changed for Medicare.
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