Social Security Fund Expected to be Short of Cash by 2033
Summary from the AllSides News Team
Trustees of the Social Security fund have released a new report that says the program will be insolvent by 2033.
The Details: Benefits paid out have exceeded money taken in by Social Security since 2021, and they expect to only be able to pay out 80% of scheduled benefits after 2034. Conversely, Medicare, expected to deplete by 2028, is now seeing an improved situation, expected to last until 2031.
For Context: The estimate from the trustees is a step backward from their last assessment, claiming full benefits would last until 2034. The backsliding is largely a result of reductions in projected economic output, which are 3% lower than last year’s estimates.
Key Quotes: Treasury Secretary Janet Yellen said Social Security and Medicare are “bedrock programs that older Americans rely upon.” Acting Social Security Commissioner Kilolo Kijakazi said "With informed discussion, creative thinking, and timely legislative action, Social Security can continue to protect future generations."
How The Media Covered It: Sources across the spectrum framed the situation as dire. Some right-rated sources highlighted how both raising taxes and cutting benefits are unattractive options for politicians, and some left-rated sources noted that the solution will likely require a combination of both. Editor's Note 4/1/23 2:30 p.m., an earlier version of this story mistakenly listed 2023 as the insolvency date, rather than 2033. We apologize for the error.
Featured Coverage of this Story
From the RightSocial Security Will Be Insolvent by 2033
Social Security will be insolvent even sooner than previously expected, with automatic benefit cuts now projected to occur in 2033, according to a new report released Friday by the program's trustees.
The new projections underscore the limited time that's available for policy makers to deal with the fiscal problems that are quickly rotting away America's old-age entitlement program. The more quickly approaching insolvency date also draws a stark contrast with leaders of both major political parties—including President Joe Biden, former President Donald Trump, and House Speaker Kevin McCarthy (R–Calif.)—who have all, at...
From the CenterU.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...
From the LeftSocial Security is now expected to run short of cash by 2033
The Social Security program is expected to run short of cash to pay promised benefits in about ten years, while a key trust fund for Medicare will run out of funds by 2031, according to new forecasts issued Friday by trustees of both programs.
The projections serve as an annual reminder that the popular programs rest on shaky financial footings. While any effort to patch them is sure to face stiff political opposition, doing nothing is likely to be worse.
Social Security benefits for retirees and others are primarily paid...