Social Security, Medicare gain years before benefit cuts
The programs have a little longer than previously forecast before they run out of money — about a decade
What happened
Medicare and Social Security have a little longer than previously forecast before they run out of money, thanks to low unemployment and rising wages plus lower expenses, trustees of the two social welfare programs said Monday. Medicare's trust fund for hospital expenses will see its reserves depleted in 2036, five years later than projected last year, and Social Security's combined retirement and disability funds will pay full benefits until 2035, a year longer than expected.
Who said what
The report offers a "measure of good news," but "Congress still needs to act" to avoid benefit cuts, Social Security Commissioner Martin O'Malley told The Associated Press. With 71 million people receiving Social Security benefits, "the stakes are simply too high to do nothing," AARP CEO Jo Ann Jenkins said.
What next?
Without congressional action, Social Security is projected to start paying out 83% of benefits in 2035 and Medicare will pay out 89%. President Joe Biden said he won't allow cuts to benefits, suggesting uncapping taxes on high-earners. Some Republicans have proposed cutting benefits or raising the retirement age.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Today's political cartoons - May 27, 2024
Cartoons Monday's cartoons - a perfect match, husbands and wives, and more
By The Week US Published
-
The short history of TV debates and UK general elections
The Explainer Keir Starmer has described them as 'part and parcel of the election cycle now' but their format has constantly changed
By Jamie Timson, The Week UK Published
-
4 tips to split costs on a group vacation
The Explainer Accommodate everyone's budgets and vacation expectations
By Becca Stanek, The Week US Published
-
Macron tries to soothe New Caledonia uproar
Speed Read The French president promised to delay a voting reform that prompted deadly riots in the Pacific territory
By Peter Weber, The Week US Published
-
Supreme Court lowers bar for racial gerrymanders
Speed Read The court rejected a claim that South Carolina's congressional map excluded Black voters
By Rafi Schwartz, The Week US Published
-
Rwanda plan on hold until general election
Speed Read Sunak frames future of deportation scheme as the 'choice' before voters in July
By Arion McNicoll, The Week UK Published
-
Justice Alito's Jan. 6 flag problem grows
Speed Read The justice’s beach house displayed a flag popular with Capitol rioters, calling his impartiality into question
By Peter Weber, The Week US Published
-
Norway, Ireland, Spain recognize Palestinian state
Speed Read The move was spurred by international outrage over the humanitarian crisis in Gaza
By Peter Weber, The Week US Published
-
ICC seeks warrants for Netanyahu, Hamas chief
Speed Read The International Criminal Court's top prosecutor said Hamas broke international law and Israel committed war crimes
By Rafi Schwartz, The Week US Published
-
Biden delivers Morehouse graduation speech
Speed Read It was the president's first time addressing a college campus since the breakout of Gaza war protests
By Peter Weber, The Week US Published
-
Iran president dead in helicopter crash
Speed Read Iranian President Ebrahim Raisi and Foreign Minister Hossein Amir-Abdollahian were found dead at the site
By Rafi Schwartz, The Week US Published