New projections released by the U.S. Treasury on Monday indicate that trust funds supporting Social Security and Medicare benefits for U.S. seniors are improving due to stronger economic growth, productivity, and immigration. This is leading to an increase in revenue collections for these programs.
According to the reports, reserves for the combined Social Security trust funds are now anticipated to run out in 2035, which is one year later than reported last year. The Medicare Hospital Insurance Trust Fund’s reserves are now expected to last until 2036, which is five years later than previously projected. At that point, the program that provides healthcare to seniors and some disabled individuals would only be able to pay 89% of total scheduled benefits.
These projections indicate some positive developments for the future of Social Security and Medicare benefits, as they are able to provide a slightly longer period of stability for seniors and individuals with disabilities. Despite this progress, it is important for policymakers to continue addressing the long-term solvency of these programs in order to ensure their continued viability for future generations.