US Social Security and Medicare Approach Insolvency, Warns Trustees

Both Social Security and Medicare programs are heading towards insolvency in the coming years, according to annual reports released by the Trustees of the two programs.

The Social Security program will be insolvent in 13 years by 2035, the Social Security Trustees said in its report.

The Social Security Old-Age & Survivors Insurance trust fund is predicted to deplete its reserves by 2034.

Though the Social Security Disability Insurance trust fund is expected to remain in strong financial condition, the combined trust fund will deplete by 2035 when today's youngest retirees turn 75, and 54-year-olds enter full retirement age.

This year, the Trustees estimate Social Security to run a cash-flow deficit of $112 billion, which comes to 1.3 percent of taxable payroll.

The Medicare Hospital Insurance trust fund will exhaust its reserves over the next six years by 2028, the Medicare Trustees predicted in its report.

The estimates of Trustees closely match with the recent predictions of the Congressional Budget Office which calculates Medicare HI trust funds to become exhausted by 2030 and the Social Security to become insolvent by 2033.
 

https://www.theepochtimes.com/us-social-security-and-medicare-approach-insolvency-warns-trustees_4510236.html?utm_source=partner&utm_campaign=ZeroHedge