• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Social Security fund projected to be depleted sooner than expected
Editor's Pick

Social Security fund projected to be depleted sooner than expected

by April 1, 2023
by April 1, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The trustees who oversee the Social Security and Medicare trust funds have released new projections outlining the financial health of those programs and how long they are expected to cover payments to recipients.

According to the report released Friday, the Social Security trust funds — which, when combined, include benefits paid to retired workers and their survivors and benefits paid to disabled workers — are expected to be depleted in 2034, one year sooner than previously anticipated.

The report cites “significant financing issues” for the shortfall. Social Security has been running at a loss since 2010, but the financial picture has worsened in recent years. A key indicator of that can be found in the ongoing wave of retirements among baby boomers, which is projected to increase faster than the number of covered workers who pay into the Social Security fund through their income taxes.

“The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust to them,” their report states.

Medicare trust fund outlook improves

On the other hand, the main reserve for Medicare, the Hospital Insurance trust fund, is now expected to cover 100% of beneficiaries for three years longer than previously expected. That’s because of an increase in the number of covered workers who contribute to the fund through taxes taken out of their paychecks, and higher projected wages.

Additionally, the updated expectations for health care spending following the Covid-19 pandemic and the ability to negotiate prescription drug prices are having a positive effect on Medicare trust fund reserves. 

Despite this, Medicare trustees say the fund ‘still faces a substantial financial shortfall that will need to be addressed with further legislation.”

The Biden administration is in the process of trying to promote a $6.8 trillion budget. In it, he proposes raising taxes on higher-earning Americans to cover projected shortfalls.

“Social Security and Medicare are two bedrock programs that older American[s] rely upon for their retirement security,” Treasury Secretary Janet Yellen said in a statement.

“The Biden-Harris Administration is committed to ensuring the long-term viability of these critical programs so that retirees can receive the hard-earned benefits they’re owed,” she said.

This post appeared first on NBC NEWS
You Might Also Like
  • What Fitch’s downgrade of the U.S. government means for taxpayers and consumers
  • In a reversal, Disney’s media assets are starting to generate more excitement than its parks
  • United Airlines CEO responds to string of safety incidents that have rattled passengers
  • Last tot standing: Buybuy Baby likely to survive as Bed Bath & Beyond fades into bankruptcy
Share
0
FacebookTwitterPinterestWhatsapp

previous post
A Quick Scan Tool for a Quick Swing Trade
next post
From Diamond Head to Lake Tahoe, popular outdoor vacation spots are cracking down on tourists

You may also like

FAA increases oversight of Boeing 737 Max 9 jets after...

February 7, 2024

Long-predicted consumer pullback finally hits restaurants like Starbucks, KFC and...

May 2, 2024

European Union regulators accuse Apple of breaching the bloc’s tech...

June 25, 2024

Plummeting stock, boycotts and flagging sales: What’s fueling turmoil for Tesla?

March 17, 2025

Mortgage refinance demand jumps to a 2-year high, as interest...

July 17, 2024

New Boeing CEO to give clues about company’s future, while...

October 23, 2024

FTX lawyers accuse Sam Bankman-Fried of financing his criminal defense...

July 21, 2023

Here’s how the Houthi attacks in the Red Sea threaten...

December 19, 2023

Judge tosses defamation suit against Fox News by head of...

July 23, 2024

Elon Musk’s X sues advertisers over alleged ‘massive advertiser boycott’...

August 6, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,633 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Tesla job cuts heighten Wall Street...

    April 18, 2024

    Treasury delays deadline for small businesses...

    December 27, 2024

    Delta says the Olympics will cost...

    July 13, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here