Headline RoundupApril 2nd, 2023

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.

 

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