The financial health of Social Security and Medicare has worsened over the past year, with the programs’ trust funds expected to run dry three months sooner than anticipated, according to reports issued Tuesday by the programs’ trustees.
Without any changes, the main Social Security trust fund would be depleted in the fourth quarter of 2032, one quarter earlier than projected last year, the Social Security trustees said in their report.
Medicare’s hospital insurance trust fund would be depleted in the second quarter of 2033, which is likewise three months earlier than projected last year, the Medicare report said.
Under the latest projections from the Social Security trustees, Social Security retirement benefits will face a 22 percent cut six years from now, while Medicare hospital insurance benefits, which cover inpatient hospital care, will be cut by 11 percent in seven years.
By law, those cuts will take place unless Congress restructures the programs through higher taxes, benefit cuts, a combination of both, or borrows more money to sustain the programs.
