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On June 2, the Social Security and Medicare Trustees released their annual reports, which show that these vital programs are on an unsustainable path. In 2022 and all later years, Social Security (the combination of retirement and disability programs) will spend more than it takes in and by 2035, the combined Social Security Trust Funds are projected to be depleted. Medicare’s Hospital Insurance (HI) Trust Fund will be depleted even sooner — in 2028 — although that date is two years later than reported last year, mostly because of higher projections of payroll tax revenues. Nevertheless, the aging of the population and increasing healthcare costs continue to put pressure on the programs and, without action, benefits in the future would be significantly reduced after the dates of depletion.
Below are five key takeaways from the reports.
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