Social Security trust fund set to be depleted by 2035 estimates U.S. Treasury

FROM EVERCORE, THANK YOU. >>> BREAKING NEWS OUT OF WASHINGTON NOW, MEGAN KASELLA HAS IT. >> THE SOCIAL SECURITY TRUST FUNDS THAT SUPPORT RETIREE AND DISABILITY BENEFITS DEPLETED BY 20 # 35, ONE YEAR LATER THAN FORECAST LAST YEAR, AND AT THAT TIME THE FUND WOULD ONLY BE ABLE TO PAY OUT ABOUT 83% OF BENEFITS. ON THE MEDICARE SIDE THERE'S A SLIGHTLY BETTER OUTLOOK, THE HOSPITAL INSURANCE TRUST FUND THAT COVERS HOSPITAL STAYS WILL BE ABLE TO PAY 100% OF BENEFITS UNTIL 2036. THAT'S FIVE YEARS LONGER THAN PREVIOUS ESTIMATES. NOW, THE TREASURY DEPARTMENT SAYS UPWARD ADJUSTMENTS ARE DUE TO A STRONGER THAN EXPECTED ECONOMY AS COMPARED TO LAST YEAR'S FORECAST, MORE AMERICANS ARE WORKING AND EARNING MORE MONEY AND THEREFORE CONTRIBUTING MORE MONEY THROUGH TAXES TO THESE PROGRAMS. TREASURIES ALSO ASSUMING A LOWER LONG-TERM DISABILITY RATE IN THESE PROGRAMS SO BOTH INCREASED REVENUE AND REDUCED COSTS ARE HELPING TO EXTEND THE TIMELINES. DESPITE THE IMPROVEMENT FROM LAST YEAR IT'S STILL CLEAR THE PROGRAMS WILL HAVE TO START PAYING LESS THAN FUL

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Length: 1min 0sec (60 seconds)

Published: Mon May 06 2024