Social Security Funding Crisis Starts In 2033

Medicare recipients will face automatic benefit cuts starting in 2031 and Social Security won’t be able to make full retirement payments starting in 2033 unless Congress intervenes, according to a new government report, Boston Globe reported.

Photo Insert: Medicare is the federal health insurance program for Americans age 65 and older and those with disabilities.

The latest yearly forecast serves as a warning for lawmakers on Capitol Hill — and for the public — of the fragile financial health of the federal government’s two most expensive programs, which tens of millions of seniors depend on for medical care and retirement benefits.

Medicare is the federal health insurance program for Americans age 65 and older and those with disabilities, while Social Security provides critical monthly benefit checks for retirees, workers’ survivors, and some people with disabilities, Jeff Stein and Amy Goldstein also reported for Washington Post.

Social Security and Medicare’s coverage of hospital care are paid for by trust funds consisting of dedicated taxes paid by workers and employers, not from general tax revenue like most of the rest of the government.

Unless lawmakers approve changes before the deadlines, Medicare and Social Security will be forced to cut benefits sharply for seniors because both programs are paying out more than they take in.

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