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Social Security now running a deficit; insolvency set at 2034

 

Social Security this year will spend more than it takes in, the program’s trustees said in a new report Tuesday that signals the official beginning of the program’s slide into insolvency.

Medicare’s main trust fund will also run out of money sooner than anticipated, with insolvency looming in 2026, or three years earlier than last year’s projection, the trustees said.

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. The problems in the entitlement programs only add to those woes.

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.

But the aging population and shrinking percentage of people in the workforce has finally swamped those fixes, posing tough questions Congress and the White House have ignored for years.

The combined Social Security trust funds are slated to run dry in 2034, and that will force benefits to be cut more than 20 percent. Read more

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Social Security now running a deficit; insolvency set at 2034

Social Security this year will spend more than it takes in, the program’s trustees said in a new report Tuesday that signals the official beginning of the program’s slide into insolvency.

Social Security now running a deficit; insolvency set at 2034

Social Security this year will spend more than it takes in, the program’s trustees said in a new report Tuesday that signals the official beginning of the program’s slide into insolvency.

Social Security now running a deficit; insolvency set at 2034

Social Security this year will spend more than it takes in, the program’s trustees said in a new report Tuesday that signals the official beginning of the program’s slide into insolvency.