Treasury now projects that Social Security funds may run short in 2035 - one year later than initially projected, which should reduce economic instability for seniors and reduce poverty rates in America.

People leave the Social Security Administration building in Burbank, California. Valerie Macon | Getty ImagesThe Social Security Trust Funds are now projected to run out by 2035, one year later than previously projected, according to an annual trustees’ report released Monday by Social Security trustees. At that point, 83% of benefits payable would still remain payable without congressional action to address potential shortfalls sooner. Trustees attribute the slightly improved outlook due to more people contributing more, amid strong economies with low unemployment levels, stable job markets, and faster wage and job creation growth. Last year, trustees estimated the program funds would last through 2034 when 80% of benefits are expected to become payable. Social Security Commissioner Martin O’Malley described this year’s report as good news for millions of American who depend on it, including half of seniors for whom Social Security means the difference between poverty and living with dignity – any potential benefit reduction event has now been delayed until 2035,” according to his statement. Additionally, O’Malley asked Congress “as they did in past bipartisan agreements.” to extend Social Security trust fund solvency on an extended basis as was done previously by his agency. O’Malley noted that eliminating Social Security’s shortfall would bring peace of mind for its 70 million beneficiaries and 180 million workers and their families who contribute. Reports detail Social Security, Medicare. Social Security faces its 2035 depletion date with its combined trust funds; they help pay benefits when more funds are required than are brought in through payroll taxes. Current taxes deducted for Social Security and Medicare take an approximate 7.65% cut out of pay; typically employers match this total contribution. High earners could see 0.9% withheld for Medicare. While Social Security trust funds’ depletion dates are often used as an indicator of program sustainability, current law prohibits their consolidation into one fund; both have distinct projected depletion dates; the one dedicated to paying retired workers, their spouses/children/survivors formally known as Old-Age and Survivors Insurance Trust Fund is projected to last until 2033 compared to 2017 projections. At that point, 79% of scheduled benefits may become payable; the Disability Insurance Trust Fund should continue paying full benefits until 2098; Medicare solvency can typically be measured by whether trust funds can offset shortfalls in payroll taxes used to fund Part A hospital insurance benefits – Medicare Hospital Insurance was highlighted for improvement during this year’s trustee report. Medicare’s depletion date has now been delayed until 2036 – five years later than projected last year due to higher payroll tax income and decreased expenditures projected for 2023. At that point, 89% of scheduled benefits may become payable. Medicare’s Supplemental Medical Insurance Trust Fund — covering voluntary Part B for physician services and supplies as well as Part D prescription drug coverage — will remain solvent as it relies on beneficiary premiums paid monthly plus Treasury Department contributions that adjust each year automatically for financing its indefinite future. Experts urge lawmakers to act soon. While new projections for depletion dates show lawmakers have some extra breathing room, experts advise taking immediate steps towards protecting both Social Security and Medicare’s solvency as soon as possible. At AARP, members aged 50 or over rank this issue among their top concerns, said Bill Sweeney, its Senior VP for Government Affairs. Sweeney estimates that 40% of households aged 65 or older depend on Social Security benefits for at least half their income and 20% rely completely on it as the source of their funds, according to research done in 2012. He further stated that any possible reductions of Social Security benefits being discussed or even discussed at all is “very concerning for people,” adding “it would cause great anxiety among senior citizens who rely heavily on them. ” Sweeney asserted, “Congress must meet and address these challenges in a bipartisan fashion and as soon as they do it the better it will be for both programs. With more similar depletion dates projected than previously anticipated he suggested a single one-step reform of both programs would provide opportunities to do just that.” This story is still developing so please check back often for updates! This story may change due to circumstances beyond my control so please check back often for any developments! This story may change due to ongoing coverage or breaking news stories being written live so please check back often for updates as this story evolves further developments unfolds! Please remember this story may evolve as more information comes in on-page updates, this news story updates! This story could change quickly! Please check back here or updates here and check back here regularly for updates! This story could evolve very soon into reality- could offer opportunity for one step reform reform of both Social Security and Medicare in an integrated reform proposal similar in one step reform proposal proposals presented as possible solutions proposed herein this one step solution that may provide chance of reform both programs together under unified one step reform proposals proposed herein this story’s development! This story’s development. Please check back with updates as this story develops. ******I *please return regularly* For updates… *I apologize****This story updates. Please return later… This story updates as this unfolds progress *This breaking news! ****** Stay with updates