Social Security will not be able to pay full benefits in 2035 if Congress doesn’t act. Medicare has a little more time

Social Security and Medicare will not be able to fully pay benefits in just over a decade if lawmakers don’t act to address the pending shortfalls, according to reports released Monday by the entitlement programs’ trustees. While the trust funds’ finances improved slightly, they remain in dire shape.

The combined Social Security trust funds – which help support monthly payments to the elderly, survivors and people with disabilities – are expected to be exhausted in 2035, one year later than previously forecast, according to its trustees’ annual report. After that, payroll tax revenue and other income sources will only be able to cover 83% of benefits owed.

Meanwhile, Medicare’s financial condition improved more. It is expected to be able to cover scheduled inpatient hospital benefits until 2036, five years later than last year’s projection, according to its trustees.

The reports are likely to become a talking point in this year’s presidential campaign. Both President Joe Biden and his presumptive Republican rival, former President Donald Trump, have promised to protect Social Security and Medicare, both beloved but endangered entitlement programs.