Overview

• Combined Social Security trust funds now project full benefits only until 2034, a year sooner than last year’s forecast.
• Medicare Part A reserves are expected to cover 100% of hospital and related benefits only through 2033 before dropping to 89%.
• Trustees attribute accelerated depletion to the Social Security Fairness Act, lower fertility rates and slower wage growth.
• Without congressional action scheduled cuts would trim Social Security benefits by 23% and Medicare hospital coverage by 11% in 2033.
• Closing the projected $25.1 trillion shortfall through 2099 would require an immediate payroll tax increase of about 3.8 percentage points or other reforms.