Social Security Facing Long Term Problems
WASHINGTON (AP) — Despite some good news, Medicare and Social Security still face long-term financial problems as millions of baby boomers reach retirement.
Social Security’s disability program is already in crisis as it edges toward the brink of insolvency. The trustees who oversee Social Security and Medicare issued their annual report Monday on the financial health of the government’s two largest benefit programs.
Medicare is getting relief from a slowdown in health care spending. Medicare’s hospital trust fund won’t be exhausted until 2030. That’s four years later than last year’s estimate. Social Security’s massive retirement program will remain solvent until 2034.
The disability trust fund, however, is slated to run dry in just two years. At that point, the program will collect only enough payroll taxes to pay 81 percent of benefits.