New Study Reveals Improving Trust Funds for Social Security and Medicare, but Future Shortfalls Still Loom

In good news for U.S. seniors and individuals with disabilities, reports released by the U.S. Treasury on Monday indicate that trust funds supporting Social Security and Medicare benefits are improving due to stronger economic growth, productivity, and immigration. This is leading to an increase in revenue collections for these programs.

The Medicare Hospital Insurance Trust Fund’s reserves are now expected to last until 2036, which is five years later than previously projected. After this date, the program that provides healthcare to seniors and some disabled individuals would only be able to pay 89% of total scheduled benefits.

Reserves for the combined Social Security trust funds are now anticipated to run out in 2035, which is one year later than reported last year. At that point, the Old-Age and Survivors Insurance Trust Fund and the Disability Insurance Trust Fund would only be able to pay 83% of scheduled pension and disability benefits on a combined basis.

Despite these projections, it’s important for policymakers to take action to ensure the long-term solvency of these vital programs.