Latest news with #SocialSecurity
Daily Mail
2 hours ago
- Business
- Daily Mail
Panic as Social Security bosses set date America will run out of cash
The US Social Security and Medicare programs for seniors will both run short of funds to pay full benefits in 2033. The go-broke dates the two trust funds have moved up due to rising health care costs and new legislation affecting Social Security benefits, according to an annual report released Wednesday. The yearly assessment found that Medicare's hospital insurance trust fund will be unable to fully cover costs beginning in 2033 — three years earlier than last year's estimate. Higher-than-forecast hospitalizations of Americans over 65 years old was a key factor. Social Security's combined trust funds, which support retirement and disability benefits to 70 million Americans, are also expected to be depleted in 2033. While the year was unchanged from last year's report, it was advanced by three calendar quarters within that year. The projections reflect higher-than-expected healthcare spending, along with recent legislation that increased Social Security benefits for some workers. Once the funds are exhausted, beneficiaries would still receive payments, but at reduced levels. Medicare would be able to cover just 89 percent of hospital costs, while Social Security could pay only about 81 percent of promised benefits. The trustees say the latest findings show the urgency of needed changes to the programs, which have faced dire financial projections for decades. But making changes to the programs has long been politically unpopular, and lawmakers have repeatedly kicked Social Security and Medicare´s troubling math to the next generation. President Donald Trump and other Republicans have vowed not to make any cuts to Medicare or Social Security, even as they seek to shrink the federal government´s expenditures. 'The financial status of the trust funds remains a top priority for the administration,' said Social Security Administration commissioner Frank Bisignano in a statement. The new forecast adds urgency to a long-standing challenge facing Congress, which has repeatedly delayed making reforms due to political sensitivity around the issue. Lawmakers would need to act — either by raising taxes, reducing benefits, or both —to ensure long-term solvency. President Donald Trump and many Republican lawmakers have pledged not to cut Medicare or Social Security benefits, but critics say recent legislative changes have worsened the programs' financial outlook. One provision enacted in January—the Social Security Fairness Act—eliminated two rules that had reduced benefits for certain workers, effectively increasing payments and accelerating the trust fund's projected depletion. Romina Boccia, director of budget and entitlement policy at the CATO Institute, called the change 'a political giveaway masquerading as reform.' Instead of tackling Social Security´s structural imbalances, Congress chose to increase benefits for a vocal minority-accelerating trust fund insolvency.' About 68 million Americans are currently enrolled in Medicare, and more than 70 million receive Social Security benefits. Both programs are primarily funded through payroll taxes, but costs are projected to outpace revenues due to the country's aging population and rising healthcare expenses. Experts say failure to act soon could result in sudden benefit cuts and instability for millions of retirees and disabled Americans. 'Congress must act to protect and strengthen the Social Security that Americans have earned and paid into,' said AARP CEO Myechia Minter-Jordan. Several policy proposals have been floated in recent years, but none have gained significant momentum. The last major reform to Social Security came in 1983, when the eligibility age for full retirement benefits was raised from 65 to 67. Without further legislative changes, the federal programs that serve as the backbone of retirement security in the US could face significant challenges within the next decade. Last year, billionaire CEO Larry Fink said Americans should work beyond the age of 65 to stop the Social Security system collapsing. Meanwhile, experts recently said Americans are making a big mistake by claiming their Social Security checks early, since delaying their claims could lead to higher payments. Every year you delay taking a Social Security payment after full retirement age you receive a significant increase in payments up to the age of 70.
Yahoo
3 hours ago
- Business
- Yahoo
Social security funds are running out, new data shows
Social security funds are running out, new data shows originally appeared on TheStreet. The Old-Age and Survivors Insurance and Disability Insurance trust funds are projected to deplete their assets by 2033, as stated in the Social Security Board of Trustees' annual 2025 report. At that time, only about 77% of scheduled benefits will be payable. The projected depletion year for the combined Social Security trust funds is 2034, at which time only 81% of the benefits will be payable. Similarly, the Hospital Insurance fund of the Medicare program is projected to be depleted as soon as 2033. This emerging retirement insecurity is prompting many younger Americans, particularly Millennials and Gen Z, to explore alternatives beyond conventional savings, as per reports dated April 2025. The survey also found that 20% of respondents from Gen Z and Generation Alpha would accept their pension in whole or in part in cryptocurrency, with 78% of respondents trusting alternative retirement savings options more. Furthermore, 60% of Gen Z and millennials plan to increase their crypto holdings, and two-thirds aim to expand their investments; over half of them already allocate retirement assets to cryptocurrencies. With 62% of respondents intending to engage in Fidelity's crypto-oriented IRA, the future holds a closer integration of cryptocurrency in retirement strategies. With 21% of Americans already dedicating more savings to crypto than to conventional stocks, almost half of Americans allocate a sizable amount—10% to 20%—of their retirement money to cryptocurrencies. However, enthusiasm for cryptocurrency hasn't been matched by mainstream financial professionals and regulators, including the U.S. Department of Labor, which has warned against using cryptocurrency for retirement accounts, citing concerns about volatility, fraud, and valuation issues, according to Investopedia. Retirement advisor Ric Edelman recently advised holding crypto of about 10% to 40% as a small part of a retirement portfolio. Social security funds are running out, new data shows first appeared on TheStreet on Jun 18, 2025 This story was originally reported by TheStreet on Jun 18, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Ya Biladi
7 hours ago
- Politics
- Ya Biladi
Spain approves the reception of 3,000 children from the Tindouf camps
The Spanish government has approved the reception of «around 3,000 children» from the Tindouf camps this summer. «At the proposal of the Ministry of Inclusion, Social Security, and Migration, the Council of Ministers has taken the necessary steps to authorize the temporary stay of Sahrawi minors and issue visas for their chaperones, as part of the 'Holidays in Peace 2025' program», the government said in a statement. Launched in the mid-1990s, the program aims to temporarily host Sahrawi children from the Tindouf camps. Between 2014 and 2024, approximately 34,500 Sahrawi minors benefited from the initiative, according to the same source. The program is coordinated by several associations supporting the Sahrawi people, the National Sahrawi Delegation, and the Sahrawi delegations of various autonomous communities. The Ministries of Inclusion, Social Security, and Migration; Foreign Affairs, the European Union, and Cooperation; Interior; Territorial Policy; and Democratic Memory, along with the autonomous communities hosting the children, all participate in this effort. Over the past decade, regions such as Andalusia, Catalonia, Castilla-La Mancha, the Basque Country, and Galicia have been the main hosts for Sahrawi minors under the program. Initially launched in 1979 by Spanish communists, «Holidays in Peace» has since been used by the Polisario to promote its position in Spain. Last year, the Forum of Support for Tindouf Autonomists (FORSATIN) criticized the program, warning about the «uprooting of peace ambassadors». Ten days ago, sources from Spanish intelligence services reported that «dozens of Sahrawis born in the Tindouf camps (Algeria), who had participated in the 'Holidays in Peace' program», were found to be involved with terrorist groups operating in the Sahel, according to the daily La Vanguardia.
Wall Street Journal
10 hours ago
- Business
- Wall Street Journal
The Social Security Iceberg Gets Closer
With all the enthusiasm of a madman, the U.S. continues to barrel toward history's most predictable crisis. Social Security is now expected to be insolvent in 2033, necessitating a 23% cut in benefits. The Medicare hospital fund will run out the same year, requiring an 11% spending cut. That's according to annual reports Wednesday by the official trustees. These projections are notably worse than last year's. The blow to Social Security benefits is two percentage points higher, and the default date is three quarters nearer. One factor cited by the trustees is that Congress, in its infinite generosity with other people's money, recently passed the deceptively named Social Security Fairness Act, topping up benefits for state and local government workers. The Medicare depletion day has moved three years earlier, owing to higher actual and expected costs. Those exact figures and dates move around somewhat, including based on how the economy is faring, so don't take them as gospel. But the larger picture, which has been obvious for years, is that America's retirement programs are on a unsustainable path and need to be reformed to be saved. Yet President Trump campaigned on never touching Social Security and Medicare. Perhaps he was sold a delusion that it would be possible to balance the books by going after fraud, such as all of those alleged 150-year-olds on benefits that Elon Musk kept insisting exist. Or maybe Mr. Trump thinks the political challenge is too great given that Democrats are utterly cynical in the way they accuse the GOP of pulling the plug on grandma.
Yahoo
11 hours ago
- Business
- Yahoo
Social Security trust fund to run dry in eight years, earlier than expected
The Social Security trust fund is projected to run out in just eight years, depleting earlier than expected. NBC News' Brian Cheung reports more. University of Michigan Economics and Public Policy Professor Justin Wolfers joins Katy Tur to examine why 'too many old and not enough young people" is causing there to be 'not enough money' in the fund.
