According to reports from the trustees of the programs, the main trust fund reserves of the U.S. Social Security system will be depleted in 2033, which is a year earlier than the previous estimate. In contrast, the finances of Medicare have slightly improved. The Medicare Hospital Trust Fund reserves are now predicted to run out in 2031, compared to the previous estimate of 2028, partly due to higher revenue data.
However, both reports from the trustees of Social Security and Medicare state that the financial situation of these programs is not sustainable in the long run. Therefore, officials from the Biden administration are urging Congress to consider President Joe Biden's proposal to increase Medicare taxes for wealthy Americans.
While the Social Security Disability Trust Fund is expected to pay full benefits through 2097, the combined funds of Social Security will only be capable of covering 80% of scheduled benefits after 2034, according to the trustees report.
