Peterson Foundation on Social Security, Medicare Trustees Reports: Doing Nothing Today Means Cuts Tomorrow

NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today following the release of the 2019 annual reports of the Social Security and Medicare Trustees:
“The latest trustees reports make clear that Social Security and Medicare beneficiaries face substantial cuts in the near future unless policymakers take action to make these vital programs solvent.
“According to the report, Social Security will pay out more than it takes in next year and every year going forward. That’s the definition of unsustainable. The Social Security retirement program will become insolvent by 2034, at which time beneficiaries will receive an immediate 23 percent cut.
“Medicare is also on a disturbing path, as its hospital insurance program will become insolvent in just 7 years, which would jeopardize healthcare for 73 million Americans.
“Continuing to ignore alarming financial projections for critical programs is unacceptable.
“Unfortunately, this is not new news. As America’s population ages and healthcare spending rises, we have known that these essential programs are coming under increasing financial strain. To build the future Americans want and deserve, our elected leaders should take action on the many readily available solutions that can be phased in gradually and fairly to secure these programs for the long term.”
Further Reading
Social Security Will Be Depleted By 2032, and Other Takeaways From the Trustees Report
Social Security’s primary trust fund is projected to be depleted by 2032, at which point, benefits for every recipient will be automatically cut by 22 percent.
Social Security and Medicare Trust Funds Will Be Depleted Within the Next Decade
The latest Trustees’ report projects that the Old-Age and Survivors Insurance Trust Fund will be depleted in 2032 — one year earlier than projected in the last two reports.
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