Social Security Retirement Trust Fund Projected to Deplete in 2032

Social Security's retirement trust fund is projected to face a funding shortfall in 2032, one year earlier than last year's estimate, according to an annual report released Tuesday. Medicare's hospital insurance trust fund is still expected to be unable to pay full benefits beginning in 2033, unchanged from the prior projection.

The report attributes the earlier shortfall date to rising healthcare costs and government spending. Officials described the gap as partial rather than a full collapse of the programs. Even after reserves are exhausted, the system would continue paying benefits at reduced levels using incoming revenue.

Social Security's combined trust funds covering retirement and disability recipients remain on schedule to exhaust reserves in 2034, the same date listed in last year's report. After that point, incoming revenue would cover about 83 percent of scheduled benefits.

70.1 million people are enrolled in Medicare, the federal health insurance program for those 65 and older as well as people with severe disabilities. Social Security benefits were last reformed roughly 40 years ago when the eligibility age was raised from 65 to 67. Medicare's eligibility age of 65 has remained unchanged.

A Social Security commissioner said the current administration is committed to protecting and strengthening the program while eliminating waste, fraud and abuse. The trustees, who include the treasury secretary, labor secretary, health secretary and the Social Security commissioner, stated that the findings underscore the need for changes to the programs.

>"The latest numbers should be a wake-up call.