Social Security And Medicare Funds Could Run Dry Earlier Than Expected, New Report Shows

The Social Security and Medicare trust funds will run dry in 2033, a year earlier than expected, according to Benzinga. The new Medicare insolvency date was moved by three years due to higher hospital costs and weak wage growth. Without congressional action, benefits could drop 23% for Social Security and 11% for Medicare hospital services. Treasury Secretary Scott Bessent, HHS Secretary Robert F. Kennedy Jr., and other trustees are calling for urgent legislative solutions to protect the 70 million Social Security recipients and 66 million Medicare enrollees. Payroll taxes remain the primary funding source, but with annual outlays exceeding revenue, the reserves are steadily shrinking. Progressive groups want Congress to eliminate the wage cap and increase taxes on high earners, while others support reducing benefit growth. Public fear about the future of Social Security is rising, as 60% of Americans fear the program will "vanish" before they retire.