Social Security will not be able to pay full benefits in 2035 if Congress doesn’t act. Medicare has a little more time

Americans’ Social Security benefits will be slashed in 2035 if lawmakers don’t act to address the pending shortfall, according to an annual report released Monday by the Social Security trustees. That’s one year later than previously forecast.

Americans’ Social Security benefits will be slashed in 2035 if lawmakers don’t act to address the pending shortfall, according to an annual report released Monday by the Social Security trustees. That’s one year later than previously forecast. The combined Social Security trust funds – which help support monthly payments to the elderly, survivors and people with disabilities – are expected to be exhausted in 11 years. After that, payroll tax revenue and other income sources will only be able to cover 83% of benefits owed. Meanwhile, Medicare’s financial condition improved even more. It is expected to be able to cover scheduled inpatient hospital benefits until 2036, five years later than last year’s projection, according to its trustees’ annual report, which was also released Monday. The trustees’ reports are likely to become a talking point in this year’s presidential campaign. Both President Joe Biden and his presumptive Republican rival, former President Donald Trump, have promised to protect Social Security and Medicare, both beloved but endangered entitlement programs. However, even with this reminder from the trustees, Congress is unlikely to delve into the controversial issue anytime soon, even as the ballooning programs are putting added strain on the federal budget and contributing to rising deficits. But the longer lawmakers wait, the fewer options they’ll have, experts warn.