The US government’s main retirement and insurance benefits programs are running out of money, and unless Congress acts soon, benefits for Social Security could be reduced by 2035 and Medicare benefits could start to evaporate by 2026.
The results of an annual report have painted a bleak picture: America’s Social Security and Medicare programs are running out of money. Social Security is currently on track to force a reduction in benefits sometime around 2035. Medicare is set to do the same by 2026.
This news comes through a report released by the Trump administration which says Congress will need to take action to prevent cutting benefits. The insolvency date for Social Security is only slightly better news than last year’s government report which predicted Social Security would run out of benefits by 2034.
The Medicare hospital insurance trust fund is set to becoming insolvent by 2026, which matches last year’s assessment.
A report by issued three Trump administration cabinet heads and the Social Security Administration’s acting commissioner, urged lawmakers to “take action sooner rather than later to address these shortfalls, so that a broader range of solutions can be considered and more time will be available to phase in changes while giving the public adequate time to prepare.”
What is most troubling, is that coming up with a fix for Social Security and Medicare is not currently something that is on Congress’ to-do list.
While President Donald Trump has made statements that cuts to America’s key retirement and medical benefits programs are off-limits, there is currently nothing in place to reinforce these programs in order to avoid benefit cuts.
And in spite of the fact that these programs are going broke, many of the 2020 presidential candidates are calling for expanding Medicare benefits, instead of addressing the problem of the financial peril both Social Security and Medicare face.
And while both political parties are in agreement that Congress needs to do something sooner than later, currently, legislation is making the rounds to do anything about the problem.
The Social Security Administration is anticipated to declare a 1.8% cost-of-living increase, that is based on current trends, with the increase slated to begin in the year 2020.