Social Security and Medicare funds at risk even before virus

Virus Outbreak Uninsured
Posted at 12:40 PM, Apr 22, 2020
and last updated 2020-04-22 12:40:56-04

WASHINGTON (AP) — The financial conditions of the government’s two biggest benefit programs remain shaky with Medicare expected to become insolvent in just 6 years while Social Security will be unable to pay full benefits starting in 2035.

Those dates, which remained unchanged from last year’s estimates, were revealed Wednesday with release of the annual trustees reports of both programs.

For Social Security, the 2035 date for exhausting the trust fund reserves means that Social Security will only be able to pay 79% of benefits at that time.

The Associated Press reports, if a recession extends into next year, it could mean that a depletion would come a full year earlier. The consequences may be worse for the Medicare program, which in this report is estimated to deplete its reserves in 2026.