Social Security must reduce benefits in 2034 if reforms aren't made

Social Security must reduce benefits in 2034 if reforms aren’t made

Medicare will run out of money sooner than expected, and Social Security's financial problems can't be ignored either, the government said Tuesday in a sobering checkup on programs vital to the middle class. The report from program trustees says Medicare will become insolvent in 2026 - three years earlier than previously forecast.

Trustees project the trust fund for Medicare Part A, which helps pay for hospital and home health services for senior citizens, will have its funds exhausted by 2026 at which point it will only be able to pay out 91 percent of promised benefits.

In a separate report, the government reported that Social Security will be able to pay full benefits until 2034, the same estimate as previous year.

For Social Security, the last time the program ran an annual deficit was in 1982, before President Reagan signed changes that set it on firmer footing for the next 30 years.

The twin warnings come as Congress has cut revenue and boosted spending - moves that, analysts say, will leave the government's finances struggling for years to come.

Challenges for both programs are exacerbated by the aging of the baby boomer population, without an equivalent proportion of workers available to replace them in the workforce. "The programs remain secure", Mnuchin said.

Khloe Kardashian Says "Mommy Shaming is Real" To Feeding Critics
Babe that's not wisdom at all because you're assuming you know who I'm talking about and you're assuming you know my feelings. ET also spoke to Yasmeen Alston, who snapped a picture with Kardashian alongside her friend, Jar'la Evans. "Very personable.

The Social Security system will be able to pay full benefits into 2034 in the Old Age and Survivors Insurance program and into 2032 in the Disability Insurance Program, according to the Social Security report.

Finances for Social Security and Medicare, two linchpins of the U.S. social safety net, worsened a year ago, according official projections released Tuesday.

That's what the Social Security and Medicare trustees projected in their 2018 annual report released Tuesday.

Mnuchin vowed the Trump administration's efforts to cut taxes, ease federal regulations and improve trade deals would help both programs survive long term. However, certain long-term issues persist. The number of Medicare beneficiaries is expected to surge to 89 million in 2040 from 60 million today, according to Medicare actuaries. Medicare Part B, which covers outpatient visits, and Part D, which pays for most prescription drugs, are paid for in part by general revenue and by individuals' premiums. It has added 7 million people since 2013.

The annual funding update marks the first such report since Congress did away with that panel, which was created to cut Medicare costs if spending grew too fast.

Medicare spending as a percentage of gross domestic product totaled 3.7 percent in 2017, and the trustees project it will increase to at least 6.2 percent by 2092.

Related:

  • Federation Internationale de Football Association  19 Announced For September With Champions League

    Federation Internationale de Football Association 19 Announced For September With Champions League

    The latest iteration of the game will be powered by the Frostbite engine and will continue on the journey of Alex Hunter. In addition to Champions League, FIFA 19 will include UEFA's other two major tournaments: Europa League and Super Cup.
    Dolphins 'know each other by name'

    Dolphins 'know each other by name'

    Dr King theorised it could have to do with the very high density of dolphins there, and the higher number of males than females. Scientists aren't sure how dolphins get their names but they develop signature whistle during their first few months of life.
    Any agreement with North Korea will be 'spur of the moment'

    Any agreement with North Korea will be 'spur of the moment'

    Trump cited the unprecedented nature of the meeting and said he was convinced that Kim is serious about doing good things for his country. "Just my touch.
  • E3 2018: New Anthem Gameplay Shown Off

    BioWare's Jonathan Warner was asked by a fan if Anthem would be getting a beta period like Mass Effect: Andromeda , last year. Two weeks after its initial reveal, EA finally gave fans their first look at the game's multiplayer mode.
    Kawhi Leonard met with San Antonio at funeral of Gregg Popovich's wife

    Kawhi Leonard met with San Antonio at funeral of Gregg Popovich's wife

    But if San Antonio does not offer Kawhi Leonard the supermax contract extension this summer, its strategy should change. The conversation turned to Leonard's status with the team and how that will impact the Spurs moving forward.
    Trump issues warning to trade partners over retaliatory tariffs

    Trump issues warning to trade partners over retaliatory tariffs

    Asked if Trudeau was upset that Trump would be leaving the summit early, Trump joked, "He's happy". G8 became G7 in 2014 when Russian Federation was excluded over the unlawful annexation of Crimea.
  • Canelo Alvarez-Gennady Golovkin September Rematch Will Not Happen

    Canelo Alvarez-Gennady Golovkin September Rematch Will Not Happen

    Canelo Álvarez and Gennady Golovkin didn't fight on May 5th. "Now this will hang over his head for who knows how long". Get daily prep sports headlines from the Gwinnett Daily Post staff delivered to your email.
    Son of Ryan O'Neal and Farrah Fawcett charged with attempted murder

    Son of Ryan O'Neal and Farrah Fawcett charged with attempted murder

    Law enforcements said a man who matched Redmond's description was seen walking up to the man and impaling him with a knife. Redmond James O'Neal is seen in a booking photo released by LAPD on June 8, 2018.
    Golden State Warriors owner expects to sign Steve Kerr to contract extension

    Golden State Warriors owner expects to sign Steve Kerr to contract extension

    Every time Cleveland worked its way back into contention, Golden State punched back with a bigger run. Not even the most optimistic Cleveland fan could expect that to change in the coming days.
  • U.N. sanctions six people on Libya human-trafficking

    U.N. sanctions six people on Libya human-trafficking

    Africans hoping to cross the Mediterranean into Europe are subjected to inhumane treatments and sold in slave markets. Islamic State (IS) group militants also gained a foothold in the North African state.
    Putnam's office responds to Tampa Bay Times report

    Putnam's office responds to Tampa Bay Times report

    But in a prepared statement, Commissioner Putnam said that only 365 applications during the gap would've required use of the NICS. Of those, Putnam's office conducted a further review on 365 applicants and then revoked 291 of their concealed carry permits.

    Dillian Whyte vs Joseph Parker Set For July 28 In London

    First of all I never refused and I still want to fight with you! "He had his big moment, and he didn't do enough", Whyte said. There's no doubt about that. "I know it took a lot of hard work from my team to get this over the line".

Comments

Latest news

LeBron James Free Agency: What Are His Likely Destinations?
Without the league's No.1 player on their roster, the Cavs might become one of the NBA's worst teams. And we've seen how poorly they fared against the Warriors, which is why James is likely to leave.

Trump Says He’ll Know Outcome of North Korea Summit After One Minute
He has not shied from using flattery either - he was the first to say Mr Trump could be nominated for a Nobel Peace Prize. He added that the North Korean government was "working very well" with the USA and said: "so far so good".

Nabil Fekir's move to Liverpool collapses as Lyon call off negotiations
The 24-year-old was being courted by Liverpool as a replacement for Philippe Coutinho, who joined Barcelona in January. The collapse - for now at least - of Liverpool's move for Fekir will be a setback for Jurgen Klopp.

Love Island 2018: Kendall dumped from cast as Adam couples with Rosie
Ever the gent, Eyall Bucker turns his attention to comforting Kendall while Adam seems busy getting to know newbie Rosie Williams. The model wasn't picked by any of the lads in tonight's savage recoupling and was sent home packing.

Title winning golfer DQ'd after self-reporting violation
There has been an outpouring of support for Wynja on social media with teammates and competitors alike offering their support. Wynja told the Leader that her teammates and family were supportive. "But I knew I couldn't leave without saying something".

CrossFit Gym Shuts Doors After Pride Workout Cancellation Causes Backlash
He also said that the LGBTQ movement is "an existential threat to freedom of expression". Unable to remain open with its staff and coaches gone, CrossFit Infiltrate shut down .

Blue Jays lose 7-2 to Yankees
The Orioles (19-41), meanwhile, completed a two-game sweep of the Mets on a sacrifice fly by Manny Machado in the eighth inning. Andujar's blast ended what had been up to that point an impressive pitching duel as the Yankees went on to a 7-2 victory.

‘Justify’ Finishes First in Belmont Stakes
Horses whose pedigrees are based on speed rather than stamina are unlikely to run their best, never mind improve, going 1? miles. A Justify win would mark the second Triple Crown win in three years with American Pharoah's 2015 performance.

A New ‘Command & Conquer’ Is Coming to Mobile Devices
Command and Conquer Rivals will release on iOS and Android , with the pre-alpha version being available on Android today. The game will require combinations of factions to succeed, using tanks, aircraft, and behemoths to fight for control.

Kim’s Birthday Message to Kanye Is as Cute as Can Be
The clip shows Rick and Morty holding a cake in front of a banner that reads: " Kanye's B-Day Song". Among other things, Kim Kardashian is a terrific gift-giver.

Everything that Happened at EA's E3 2018 Press Conference
There will be no loot boxes in the game, nor any other pay-to-play schemes that give players unfair advantages. For some reason the deities abandoned their creation midway through and left their world-shaping tools behind.

Lou Macari suggests Toby Alderweireld not worth £55m
Mourinho is said to have identified a few alternatives should a move for Alderweireld not happen. Manchester United and Tottenham are at loggerheads over a fee for Toby Alderweireld .

Soros Secretly Owns Justify, The Triple Crown Contender
However, the past two years' Stakes have seen gambling fall to roughly $50 million per race, with no Triple Crown at stake . American Pharoah is the grandson of 2003 Belmont victor Empire Maker and had the pedigree to make the distance .

Warriors force Game 7 with 115-86 rout of Rockets
This will surely a great and entertaining game and has the potential to wrap up going down as the best of the entire postseason. Houston went 7 of 44 from deep, 15.9 percent, while Golden State made 16 of 39 3-point attempts, 41 percent.

Trump turns tables on G7 allies with free trade `proclamation'
President Donald Trump has opened his second day at an worldwide summit at a breakfast discussion on gender equality. And now, Morneau added the tariffs to Canada's list of deal breakers on NAFTA.

Other news