Social Security encompasses two programs, one for retirees and one that provides disability benefits.
The report also forecasts that Medicare's giant trust fund for inpatient care won't be able to cover projected medical bills starting in 2026, three years earlier than previously expected. He wrote, "If the government knows that there are no assets in the Social Security and Medicare 'trust funds, ' and yet projects the interest earned on those non-assets and the date on which those non-assets will be exhausted, then the government is lying". Medicare is also expected to spend more than projected previous year, the report said. The report says Social Security will become insolvent in 2034.Unless lawmakers act, both programs face the prospect of being unable to cover the full cost of promised benefits.
In 2017, Medicare covered 58.4 million people, with 49.5 million older than 65.
The report said the total annual cost of Social Security is projected to exceed total annual income in 2018 for the first time since Ronald Reagan's presidency, meaning the program will have to tap into reserves. That's what he would say, given that fiscally irresponsible Republican policies, those ballyhooed tax cuts included, will add $1.6 trillion to the federal deficit over the next 10 years, according to the Congressional Budget Office.
Medicare's Board of Trustees blamed the earlier depletion forecast on expectations of lower payroll taxes and less revenue from taxing Social Security benefits, both the result of the tax overhaul signed by President Donald Trump a year ago, according to a senior administration official. "The programs remain secure", he said.
"The administration's economic agenda - tax cuts, regulatory reform and improved trade agreements - will generate the long-term growth needed to help secure these programs", Treasury Secretary Steven Mnuchin said Tuesday.
Rather than cutting benefits, the Democratic-leaning Social Security Works coalition supports expanding benefits as a solution to the nation's looming retirement crisis by asking the wealthy to contribute more. This is because premium income and general revenue income are reset each year to cover the expected rise in costs. About 23 percent of older married couples rely on Social Security as their main source of income, according to the program.
The board also thinks costs will increase at a fast pace in the future.