"The trust funds that support Medicare and Social Security-a financial backbone for nearly 70 million Americans-are at serious risk of insolvency within the next seven years, threatening to slash benefits by up to 24% for retirees unless legislative action is taken immediately. For a typical couple turning 60 this year, this could mean a staggering loss of approximately $18,400 in Social Security benefits annually, according to the Committee for a Responsible Federal Budget (CRFB), one of Washington DC's top nonpartisan budget watchdogs."
"Financial projections from both program trustees and the Congressional Budget Office (CBO) paint an alarming picture, the CRFB says: the trust funds that finance Social Security's retirement program, Medicare's hospital insurance, and the Highway Trust Fund will all be depleted by or before 2032. Specifically for Social Security, projections indicate that the retirement trust fund will be depleted in late 2032, with the combined retirement and disability trust funds exhausting their reserves by 2034. Medicare's associated hospital insurance fund faces a similar fate, with policymakers now estimating insolvency by 2032 as well."
"Current federal law mandates that these programs cannot spend more than the revenue they collect. Once their reserves are depleted, the programs will be forced to impose immediate and sweeping cuts to balance their budgets. For Social Security, this translates into a 24% across-the-board cut in benefits-equal to an $18,400 reduction per year for the typical couple entering retirement in 2033."
Medicare and Social Security trust funds, along with the Highway Trust Fund, face depletion by or before 2032, with combined Social Security reserves exhausting by 2034. Projections from trustees and the Congressional Budget Office indicate imminent insolvency for multiple federal trust funds. Current law requires programs to limit spending to collected revenue, which will force immediate across-the-board cuts once reserves are gone. Social Security benefits could fall by about 24%, equivalent to roughly $18,400 annually for a typical retiring couple. Medicare hospital insurance could cut outlays by about 12%, and the Highway Trust Fund could face near-46% reductions, threatening infrastructure work.
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