Social Security could be forced to cut benefits by 23% by 2033, reports show
The Social Security program could run short of cash to cover benefits as soon as 2033, a year earlier than previously expected, according to a new report.
The report from the Trustees of the Social Security and Medicare trust funds shows that, unless Congress steps in, Social Security would only have enough money to cover about 77% of the scheduled benefits after that point, NPR reported.
A separate report for Medicare shows that the Hospital Insurance Trust fund could pay full benefits through 2031. After that, it would only be able to cover about 89% of expected benefits.
Social Security benefits for retirees and others are paid primarily through payroll taxes of current workers with supplements from trust funds. Benefits paid out by the program have exceeded the money coming in since 2021.
Some 66 million Americans receive Social Security.