Medicare will reach insolvency by 2026 while Social Security’s two trust funds will become insolvent by 2033, the program’s trustees reported Friday.
Unless Congress acts, Social Security will no longer be able to pay full benefits to retirees after 2033. Only three-quarters of benefits will be delivered after the projected insolvency date.
Advertisement – story continues below
The trust fund that pays disability benefits through Social Security is headed for insolvency in 2016 and will only be able to pay out 80 percent of benefits after that date, the trustees found.
Medicare’s trust fund will become insolvent in 2026 — two years later than previously estimated. By that date, the fund that covers Medicare’s hospital benefit will begin to spend more money than it takes in.
The additional two years of Medicare solvency projected this year were due to lower-than-expected spending. The insolvency date for Social Security is unchanged from last year.
Read More at The Hill . By Erik Wasson and Sam Baker.