U.S. Federal Government Benefits Social Security, Medicare— When Will Their Trust Funds Run Out?

The trust funds for the Social Security retirement benefits and the Medicare Part A are predicted to run out of 2033 and 2031, respectively. In this article, learn why the continuity of the U.S. federal government benefits become uncertain in the future.

U.S. Federal Government Benefits [Photo: Peter G. Peterson Foundation]U.S. Federal Government Benefits [Photo: AARP]

Social Security

According to Huddleston, the Old-Age and Survivors Insurance Trust Fund that finances the Social Security retiree benefits is predicted to run out in 2033. Unfortunately, this prediction is a year earlier than what was predicted last year. By 2033, these federal government benefits’ trust fund is expected to finance only 77% of what was already scheduled.

Fortunately, the Disability Insurance Trust Fund is predicted to be able to finance 100% of the scheduled federal government benefits through at least 2097. On the contrary, this prediction is an extension of what was predicted last year.

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Medicare

According to Silvestrini, the Medicare Part A‘s hospital insurance fund is expected to be able to fully finance the scheduled benefits until the year 2031. A recently released report states that it is three years longer than what was predicted last year. If these federal government benefits’ trust fund becomes depleted, the program’s tax income is expected to be enough to finance 89% of the scheduled benefits.

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