The Social Security trust funds are set to be depleted in 2033, one year earlier than previous predictions. In an annual report released by the Treasury Department, the trustees of the Social Security Old-Age and Survivors Insurance Trust Fund warned that there will only be enough funds to pay 77% of total scheduled benefits.
Meanwhile, the trustees said that Medicare is in better shape and will have enough revenue to keep paying its bills until 2031, three years later than last year's estimate. After 2031, Medicare will only be able to cover 89% of total scheduled benefits.
Officials are calling on Congress to take action to shore up Social Security and Medicare.
"The trustees continue to recommend that Congress address the projected trust fund shortfalls in a timely fashion to phase in necessary changes gradually," said Kilolo Kijakazi, acting commissioner of Social Security. "With informed discussion, creative thinking, and timely legislative action, Social Security can continue to protect future generations."