Close Menu
Truth Republican
  • Home
  • News
  • Politics
  • Business
  • Guns & Gear
  • Healthy Tips
  • Prepping & Survival
  • Videos
Facebook X (Twitter) Instagram
Truth Republican
  • Home
  • News
  • Politics
  • Business
  • Guns & Gear
  • Healthy Tips
  • Prepping & Survival
  • Videos
Newsletter
Truth Republican
You are at:Home»Business»Social Security trust fund now projected to run dry in 2034, triggering massive benefit cuts
Business

Social Security trust fund now projected to run dry in 2034, triggering massive benefit cuts

Buddy DoyleBy Buddy DoyleJune 20, 2025No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp
Social Security trust fund now projected to run dry in 2034, triggering massive benefit cuts
Share
Facebook Twitter LinkedIn Pinterest Email

The trustees for Social Security and Medicare released their annual report on the status of the entitlement programs’ trust funds, which are expected to be depleted sooner than previously thought.

The Social Security and Medicare trustees “found that the Social Security and Medicare programs both continue to face significant financing issues.”

Trustees found that if Social Security’s Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds were combined, the trust funds would be able to pay 100% of scheduled benefits until 2034, one year earlier than reported last year. The depletion dates for both Social Security trust funds advanced by three calendar quarters compared to last year.

At the time of depletion in 2034, the trust funds would be able to pay only 81% of scheduled benefits, meaning Social Security recipients would see a mandatory 19% cut automatically. That’s because Social Security benefits are financed through a combination of payroll taxes from current workers along with the trust funds, which would leave the program relying solely on payroll tax revenue once the trust funds are depleted.

CBO SAYS US BUDGET DEFICITS TO WIDEN, NATIONAL DEBT TO SURGE TO 156% OF GDP

For comparison, the average monthly Social Security benefit as of January 2025 was $1,976, according to Social Security Administration (SSA) data. A cut of 19% would amount to a reduction of $376 per month, lowering the payment to $1,600 a month.

Medicare’s Hospital Insurance (HI) trust fund is projected to be depleted in 2033, three years earlier than last year’s report, according to the trustees. At that time, 89% of scheduled benefits would be payable, leading to an 11% reduction in payments relative to pre-depletion levels.

“The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust their expectations and behavior,” the report said. 

SOCIAL SECURITY PAYMENTS TO INCREASE FOR PUBLIC PENSION RECIPIENTS

Social Security Administration

“With informed discussion, creative thinking, and timely legislative action, Social Security and Medicare can continue to protect future generations,” the trustees added.

The Social Security and Medicare trust funds are facing depletion due to the aging of America’s population relative to prior decades, as the ratio of workers to retirees has shifted. 

Data from the SSA shows the ratio of covered workers paying taxes to the number of beneficiaries was 8.6 workers to beneficiaries as of 1955. That number has declined to 2.8 as of 2013 due to the aging of the population.

THE FEDERAL DEFICIT KEEPS GROWING, AND THE CONGRESSIONAL BUDGET OFFICE HAS SOLUTIONS

Centers for Medicare and Medicaid Services

“Social Security and Medicare won’t even be able to pay full benefits to current retirees – they will be insolvent when today’s 59-year-olds reach the full retirement age and today’s youngest retirees turn 70,” Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, said in a statement. 

“Where is the sense of urgency?

“It’s time to start telling the truth when it comes to Social Security and Medicare. We are running out of time to phase in changes gradually and avoid harsh cuts, sharp tax increases or unacceptable borrowing,” MacGuineas added. “Demagoguing this issue may be politically expedient, but it will ultimately prove ruinous for the tens of millions of Americans that rely on the programs.”

AARP CEO Myechia Minter-Jordan said in a statement it’s critical for Americans to be able to rely on Social Security and Medicare in their retirements and urged Congress to take steps to protect the programs.

“AARP members and older Americans nationwide consistently say that the future of Social Security and Medicare are the issues they care about most, and they stand ready to hold politicians across party lines accountable to strengthen these programs for the long term,” Minter-Jordan said.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleMystery flights from China to Iran raise questions amid Israel conflict
Next Article TOP 10 COMBAT HANDGUNS 2022 | BEST TACTICAL PISTOLS 2022

Related Articles

Tesla mocks American Eagle with cheeky jeans joke after Sydney Sweeney ad controversy erupts

Tesla mocks American Eagle with cheeky jeans joke after Sydney Sweeney ad controversy erupts

July 30, 2025
‘Labeling error’ has vodka seltzer in energy drink cans, prompting recall

‘Labeling error’ has vodka seltzer in energy drink cans, prompting recall

July 30, 2025
Mets’ Francisco Lindor partners with Dairy Queen for ‘Miracle Treat Day’ impacting children’s hospitals

Mets’ Francisco Lindor partners with Dairy Queen for ‘Miracle Treat Day’ impacting children’s hospitals

July 30, 2025
Fed meeting looms as Trump celebrates 3% GDP growth, pushes for rate cuts

Fed meeting looms as Trump celebrates 3% GDP growth, pushes for rate cuts

July 30, 2025
DoorDash driver’s quick alert saves Blackstone employee from lobby shooter

DoorDash driver’s quick alert saves Blackstone employee from lobby shooter

July 30, 2025
Trump announces 25% tariff on India, slamming ‘obnoxious’ trade barriers, Russia military and energy buys

Trump announces 25% tariff on India, slamming ‘obnoxious’ trade barriers, Russia military and energy buys

July 30, 2025
NYC office shooting raises new corporate security concerns for business leaders

NYC office shooting raises new corporate security concerns for business leaders

July 30, 2025
Retirees face staggering 6-figure health care bill when leaving the workforce

Retirees face staggering 6-figure health care bill when leaving the workforce

July 30, 2025
United Airlines, JetBlue partnership gets Trump admin clearance to fly

United Airlines, JetBlue partnership gets Trump admin clearance to fly

July 30, 2025
Don't Miss
Tsunami Hits Hawaii After Earthquake Off Russia’s Eastern Coast

Tsunami Hits Hawaii After Earthquake Off Russia’s Eastern Coast

Tesla mocks American Eagle with cheeky jeans joke after Sydney Sweeney ad controversy erupts

Tesla mocks American Eagle with cheeky jeans joke after Sydney Sweeney ad controversy erupts

Hidden sleep danger could increase risk of 172 diseases, major study reveals

Hidden sleep danger could increase risk of 172 diseases, major study reveals

Mamdani dodges responsibility for threats to NYPD in first presser since deadly Manhattan shooting

Mamdani dodges responsibility for threats to NYPD in first presser since deadly Manhattan shooting

Latest News
‘Labeling error’ has vodka seltzer in energy drink cans, prompting recall

‘Labeling error’ has vodka seltzer in energy drink cans, prompting recall

July 30, 2025
Zohran Mamdani dodges questions on mass shooting after returning from Africa vacation

Zohran Mamdani dodges questions on mass shooting after returning from Africa vacation

July 30, 2025
World Athletics introduces testing for gender eligibility requirements: ‘Cannot trump biology’

World Athletics introduces testing for gender eligibility requirements: ‘Cannot trump biology’

July 30, 2025
Update: Self-Defense Claim Rejected In South Florida USPS Worker Stabbing

Update: Self-Defense Claim Rejected In South Florida USPS Worker Stabbing

July 30, 2025
Mets’ Francisco Lindor partners with Dairy Queen for ‘Miracle Treat Day’ impacting children’s hospitals

Mets’ Francisco Lindor partners with Dairy Queen for ‘Miracle Treat Day’ impacting children’s hospitals

July 30, 2025
Copyright © 2025. Truth Republican. All rights reserved.
  • Privacy Policy
  • Terms of use
  • Contact

Type above and press Enter to search. Press Esc to cancel.