U.S. Social Security fund seen depleted 2033, year earlier than previous estimate

The U.S. Social Security system's main trust fund's reserves will be depleted in 2033, one year earlier than estimated last year, while Medicare's finances have improved slightly, reports from the programs' trustees showed on Friday.

The Medicare Hospital Trust Fund reserves are now expected to be depleted in 2031 compared to an estimate of 2028 made last year, due in part to new estimates showing higher revenue data.

Both the Social Security and Medicare trustees reports said that the programs' finances are unsustainable in the long term, and Biden administration officials urged Congress to adopt President Joe Biden's proposal to raise Medicare taxes on wealthy Americans.

Although the Social Security Disability Trust Fund is projected to be able to pay full benefits through 2097, the final year in the 75-year projection period, the combined Social Security funds would be only able to pay 80% of scheduled benefits after 2034, according to the trustees report.