The U.S. Treasury has released reports that show improvement in the financial health of trust funds supporting Social Security and Medicare benefits for seniors. This improvement is due to stronger-than-expected economic growth, productivity, and immigration that are boosting revenue collections. The Medicare Hospital Insurance Trust Fund’s reserves are now projected to be depleted in 2036, five years later than previously expected, which means that this program will only be able to pay 89% of scheduled benefits after that date.
Reserves for the combined Social Security trust funds are now expected to be depleted in 2035, one year later than previously reported. This means that the Old-Age and Survivors Insurance Trust Fund as well as the Disability Insurance Trust Fund will only be able to pay 83% of scheduled pension and disability benefits on a combined basis after this date.
The improvement in the trust funds’ outlook is positive news for U.S. seniors who rely on these benefits for their financial security. These reports reflect the impact of economic factors on the financial health of these important programs, including stronger-than-expected economic growth, productivity, and immigration that are boosting revenue collections.
