Latest news with #FrankBisignano
Hindustan Times
11 hours ago
- Business
- Hindustan Times
Monthly social security checks could be cut by this year if Congress doesn't act
The Social Security Administration's (SSA) trust fund is slated to run out a year earlier than previous predictions as per 2025's Trustee Report Summary released on Wednesday (June 18). This could put about 70 million current beneficiaries of the system at risk as the demographic in the US starts shifting from a younger tax-paying population to an older benefit-ridden one. Although numbers can alter from year to year based on fluctuations in the economy and regulations in the number of beneficiaries, one thing is clear: the SSA's funds will deplete sooner rather than later and leave millions in the lurch. The root of the issue lies in the fact that the number of dependents is rapidly increasing and is projected to overshadow those contributing to the system. As the program's data suggests, the number of people claiming benefits jumped 17% to 1.8 million in May 2025 and is already on the fast track to enlisting 4 million additional beneficiaries this year. In addition, the recent implementation of the Social Security Fairness Act has substantially increased the pool size and quantum of benefits per individual. Dependents of and those receiving public pensions are now eligible to receive full benefits from the program. This puts additional constraints on an already overburdened system. The report implies that funds are now expected to run out by 2034, a year earlier than what was predicted earlier. 'If the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund projections were combined, the resulting projected fund (designated OASDI) would be able to pay 100 percent of total scheduled benefits until 2034, one year earlier than reported last year. At that time, the projected fund's reserves would become depleted, and continuing total fund income would be sufficient to pay 81 percent of scheduled benefits,' the report claims. The only viable solution to this situation is to either reduce the benefits/beneficiaries or increase the amount of revenue generated. Poll after poll declares that the public is increasingly in favor of the latter option over the former, since they oppose the principle of depriving those in need of crucial funds. 'To ensure we serve the public and deliver high-quality service to the 185 million people who work and pay payroll taxes for Social Security and the 70 million beneficiaries who will receive benefits during 2025, the financial status of the trust funds remains a top priority for the Trump Administration,' said Commissioner of Social Security Frank Bisignano in a statement published by the US Department of the Treasury. One popular approach suggested by multiple advocacy groups is to raise the cap for taxable income from the current threshold of $176,100. This 'tax the rich' has garnered favor among those who believe the wealthy should be responsible for bankrolling the SSA's depleting funds. The idea of raising the full retirement age to 70 years instead of the current 67 has failed to gain much support amid fears that the same may deprive an older population of much-needed support. Amid recent job cuts and multiple other changes at the SSA, stability of income after retirement has become all the more crucial. As Bisignano said, 'Congress, along with the Social Security Administration and others committed to eliminating waste, fraud, and abuse, must work together to protect and strengthen the trust funds for the millions of Americans who rely on it – now and in the future – for a secure retirement or in the event of a disability.'
Economic Times
2 days ago
- Health
- Economic Times
US healthcare almost broke, Medicare and Social Security's trust funds will have no money by this date
ETHealthWorld The Medicare hospital insurance trust fund is expected to deplete in 2033, three years earlier than last year's projection. Social Security's combined trust funds will run out by 2034, a year earlier than previously forecast. The financial health of America's two most critical safety-net programs, Medicare and Social Security, is deteriorating faster than expected. An annual report released Wednesday, June 18, by program trustees shows that rising health care costs, demographic pressures, and a new law expanding Social Security benefits have accelerated the timeline for when the programs become out of money and cannot pay full benefits. The Medicare hospital insurance trust fund is now expected to run out of money in 2033, three years earlier than projected just last year. Meanwhile, Social Security's combined trust funds, which support retirement and disability benefits, will be depleted by 2034, a year earlier than previously forecast. At that point, beneficiaries would see a significant reduction in monthly payments unless Congress updated projections concern the long-term solvency of these programs, which tens of millions of Americans depend on for health care and income security. The report highlights that Medicare's hospital insurance (Part A) trust fund faces a steeper decline due to higher-than-expected health care expenses in 2024. The fund posted a surplus of $29 billion last year, but deficits are expected to begin after 2027, leading to full depletion by exhausted, Medicare will only be able to cover 89% of inpatient care costs, such as hospital visits, hospice services, and post-hospital nursing care. Currently, about 68 million people are enrolled in Medicare, including Americans over age 65 and those with severe illnesses or Security's combined trust funds, which support retirees and disability recipients, are projected to be depleted by 2034, one year earlier than last year's forecast of 2035. After that date, the program would only be able to pay 81% of scheduled benefits, if no changes are made. This accelerated timeline results in part from the Social Security Fairness Act passed in January 2025. This law repealed the Windfall Elimination Provision and Government Pension Offset, increasing benefits for some workers. Trustees confirmed that this legislative change worsened the trust fund's depletion. Trustees of both programs urged lawmakers to act swiftly. 'Medicare still faces a substantial financial shortfall that needs to be addressed with further legislation,' the report said. Frank Bisignano, the newly appointed Social Security Commissioner, said that stabilizing the trust funds is a top priority for the Trump administration, which has so far pledged not to cut benefits. Despite this, experts warn that without new revenue or cost controls, both programs risk serious disruption. Nancy Altman of Social Security Works argued that lawmakers must decide: raise revenue or cut benefits. 'There are two options for action,' she said. 'Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts.' AARP CEO Myechia Minter-Jordan added that with over 69 million Americans relying on Social Security, 'the stability of this vital program only becomes more important.'The Congressional Budget Office has repeatedly warned that an aging population is the main driver of rising debt related to Social Security and Medicare. The last major Social Security reform occurred about 40 years ago, when the eligibility age was raised from 65 to 67. Medicare eligibility remains at age legislative proposals are currently being considered to address the trust funds' financial outlook. However, none have yet been passed.
Economic Times
2 days ago
- Business
- Economic Times
Social security shock for Americans: Retirement trust fund could run dry by 2035, report warns
Social Security at Risk Combined Funds Face Depletion by 2034 Disability Insurance Fund Stable for Now, Medicare at Risk Live Events Calls for Action from Leadership FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Social Security Board of Trustees issued a new warning that the trust fund that helps pay retirement benefits could run out of money by 2033, potentially slashing monthly payments for future retirees, as per a report. The Social Security Board of Trustees' annual report showed that only 77% of scheduled benefits will be payable at that time, as per Security's combined trust funds, which include the Old-Age and Survivors Insurance and Disability Insurance trust funds, are expected to have only revenue to pay scheduled benefits and administrative costs until 2034, as per CNBC. The projection indicated that 81% of the combined benefits will be payable at that time, according to the READ: Barron Trump's $40 million crypto windfall? Inside the shocking profits from his father's digital coin empire According to CNBC, even though the combined depletion date is used to gauge Social Security's solvency, the current law restricts joining those funds, but previously Congress has authorised shifting of the funds, when there have been trust fund Disability Insurance Trust Fund will be able to pay full benefits until 2099, and Medicare's Hospital Insurance trust fund, which is associated with Medicare Part A and pays for certain health care services, will be able to pay full benefits only until 2033, reported CNBC. Social Security Administration Commissioner Frank Bisignano said that the financial status of the trust funds is a 'top priority' for the Trump administration, and he also urged Congress to 'protect and strengthen' the trust funds for the millions of Americans who will rely on the program 'now and in the future,' quoted CEO Myechia Minter-Jordan said, 'Congress must act to protect and strengthen the Social Security that Americans have earned and paid into throughout their working lives,' adding, 'as America's population ages, the stability of this vital program only becomes more important,' as quoted in the It is projected to pay full benefits until at least but unless changes are made, you might only receive around 77% of your expected benefits, as per CNBC report.
Time of India
2 days ago
- Business
- Time of India
Social security shock for Americans: Retirement trust fund could run dry by 2035, report warns
The Social Security Board of Trustees issued a new warning that the trust fund that helps pay retirement benefits could run out of money by 2033, potentially slashing monthly payments for future retirees, as per a report. The Social Security Board of Trustees' annual report showed that only 77% of scheduled benefits will be payable at that time, as per CNBC. Social Security at Risk Social Security's combined trust funds, which include the Old-Age and Survivors Insurance and Disability Insurance trust funds, are expected to have only revenue to pay scheduled benefits and administrative costs until 2034, as per CNBC. The projection indicated that 81% of the combined benefits will be payable at that time, according to the report. ALSO READ: Barron Trump's $40 million crypto windfall? Inside the shocking profits from his father's digital coin empire Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 청담동 에스테틱샵에서 난리난 "얼굴 기미" 해결하는 법 두아이연구원 Undo Combined Funds Face Depletion by 2034 According to CNBC, even though the combined depletion date is used to gauge Social Security's solvency, the current law restricts joining those funds, but previously Congress has authorised shifting of the funds, when there have been trust fund shortfalls. Disability Insurance Fund Stable for Now, Medicare at Risk The Disability Insurance Trust Fund will be able to pay full benefits until 2099, and Medicare's Hospital Insurance trust fund, which is associated with Medicare Part A and pays for certain health care services, will be able to pay full benefits only until 2033, reported CNBC. Live Events Calls for Action from Leadership Social Security Administration Commissioner Frank Bisignano said that the financial status of the trust funds is a 'top priority' for the Trump administration, and he also urged Congress to 'protect and strengthen' the trust funds for the millions of Americans who will rely on the program 'now and in the future,' quoted CNBC. AARP CEO Myechia Minter-Jordan said, 'Congress must act to protect and strengthen the Social Security that Americans have earned and paid into throughout their working lives,' adding, 'as America's population ages, the stability of this vital program only becomes more important,' as quoted in the report. FAQs Is the Disability Insurance fund safe? Yes. It is projected to pay full benefits until at least 2099. Will I still get Social Security after 2033? Yes, but unless changes are made, you might only receive around 77% of your expected benefits, as per CNBC report.
Time of India
2 days ago
- Business
- Time of India
US healthcare almost broke, Medicare and Social Security's trust funds will have no money by this date
The financial health of America's two most critical safety-net programs, Medicare and Social Security, is deteriorating faster than expected. An annual report released Wednesday, June 18, by program trustees shows that rising health care costs, demographic pressures, and a new law expanding Social Security benefits have accelerated the timeline for when the programs become out of money and cannot pay full benefits. The Medicare hospital insurance trust fund is now expected to run out of money in 2033, three years earlier than projected just last year. Meanwhile, Social Security's combined trust funds, which support retirement and disability benefits, will be depleted by 2034, a year earlier than previously forecast. At that point, beneficiaries would see a significant reduction in monthly payments unless Congress intervenes. The updated projections concern the long-term solvency of these programs, which tens of millions of Americans depend on for health care and income security. Medicare's Trust Fund to Be Exhausted by 2033 Live Events The report highlights that Medicare's hospital insurance (Part A) trust fund faces a steeper decline due to higher-than-expected health care expenses in 2024. The fund posted a surplus of $29 billion last year, but deficits are expected to begin after 2027, leading to full depletion by 2033. Once exhausted, Medicare will only be able to cover 89% of inpatient care costs, such as hospital visits, hospice services, and post-hospital nursing care. Currently, about 68 million people are enrolled in Medicare, including Americans over age 65 and those with severe illnesses or disabilities. Social Security Set to Pay Reduced Benefits by 2034 Social Security's combined trust funds, which support retirees and disability recipients, are projected to be depleted by 2034, one year earlier than last year's forecast of 2035. After that date, the program would only be able to pay 81% of scheduled benefits, if no changes are made. This accelerated timeline results in part from the Social Security Fairness Act passed in January 2025. This law repealed the Windfall Elimination Provision and Government Pension Offset, increasing benefits for some workers. Trustees confirmed that this legislative change worsened the trust fund's depletion. Urgency Builds for Legislative Action Trustees of both programs urged lawmakers to act swiftly. 'Medicare still faces a substantial financial shortfall that needs to be addressed with further legislation,' the report said. Frank Bisignano, the newly appointed Social Security Commissioner, said that stabilizing the trust funds is a top priority for the Trump administration, which has so far pledged not to cut benefits. Despite this, experts warn that without new revenue or cost controls, both programs risk serious disruption. Nancy Altman of Social Security Works argued that lawmakers must decide: raise revenue or cut benefits. 'There are two options for action,' she said. 'Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts.' AARP CEO Myechia Minter-Jordan added that with over 69 million Americans relying on Social Security, 'the stability of this vital program only becomes more important.' Demographics and Debt Add Pressure The Congressional Budget Office has repeatedly warned that an aging population is the main driver of rising debt related to Social Security and Medicare. The last major Social Security reform occurred about 40 years ago, when the eligibility age was raised from 65 to 67. Medicare eligibility remains at age 65. Several legislative proposals are currently being considered to address the trust funds' financial outlook. However, none have yet been passed.
