Social Security Will Be Insolvent By 2033
May 31, 2013 - 7:27 pm
Social Security will be unable to give full benefits to retirees by 2033, and that’s not all. Medicare is expected to be insolvent by 2026. Thus, the end of the social safety net. The Hill reported that:
Unless Congress acts, Social Security will no longer be able to pay full benefits to retirees after 2033. Only three-quarters of benefits will be delivered after the projected insolvency date.
The trust fund that pays disability benefits through Social Security is headed for insolvency in 2016 and will only be able to pay out 80 percent of benefits after that date, the trustees found.
Medicare’s trust fund will become insolvent in 2026 — two years later than previously estimated. By that date, the fund that covers Medicare’s hospital benefit will begin to spend more money than it takes in.
The additional two years of Medicare solvency projected this year were due to lower-than-expected spending. The insolvency date for Social Security is unchanged from last year.
House Budget Committee Chairman Paul Ryan’s (R-Wis.) office said the report means action needs to be taken immediately to fix the entitlement programs.
“Today’s report is yet another reminder that Medicare and Social Security are in great danger. We need to protect and strengthen these critical programs. And we must take action now, so we can keep our promises to current seniors and future retirees,” Ryan spokesman William Allison said Friday.
The trustees report was signed by Health and Human Services Secretary Kathleen Sebelius, Acting Labor Secretary Seth Harris, Acting Social Security Commissioner Carolyn Colvin, Treasury Secretary Jack Law and public trustees Charles Blahous and Robert Reischauer.
The trustees had previously said that President Obama’s healthcare law extended the life of the Medicare trust fund — a finding that Lew and Sebelius were quick to highlight on Friday.
So, while liberals pat themselves on the back for extending the life of Medicare, it’s still going to be insolvent,unless further reforms are made. Conservatives – and some fiscally hawkish Democrats– have known this for years, but for a president that has only spent 3.6% of his time focusing on the economy – we shouldn’t expect much over the next three years. Obama has some scandals to deal to resolve.