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That's because, taken together, the two primary Social Security funds are set to only be able to pay out full benefits through 2035; the Old-Age and Survivors Insurance Trust Fund, one of the main funds comprising Social Security, will start getting depleted in 2033. AdvertisementIn other words, the moment that today's older Gen Xers are ready to retire, their Social Security benefits could start to shrink. Gen Xers — born from 1965 to 1980 — have been deemed the country's "neglected middle child" by the Pew Research Center. And among the different generations, Gen Xers were the most likely to report that they were feeling financially insecure. That could set the stage for the new crop of Gen X retirees to arrive in an already-precarious retirement economy.

Persons: —, Gen X, Xers, Gen Xers —, YouGov —, Gen Xers, X, Gen Zers, Gen, Michele Raneri, aren't, Xer Organizations: Service, Gen, Social Security, Insurance Trust Fund, Business, Security, Pew Research Center, of Congress, Millennials, TransUnion, Survey, Alliance, Lifetime, Income

☆ Social Security now expected to run short on funds in 2035, one year later than previously projected, Treasury says
▼ + stars: | 2024-05-06 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Valerie Macon | Afp | Getty ImagesThe trust funds the Social Security Administration relies on to pay benefits are now projected to run out in 2035, one year later than previously projected, according to the annual trustees' report released on Monday. The Social Security trustees credited the slightly improved outlook to more people contributing to the program amid a strong economy, low unemployment and higher job and wage growth. "This year's report is a measure of good news for the millions of Americans who depend on Social Security, including the roughly 50% of seniors for whom Social Security is the difference between poverty and living in dignity — any potential benefit reduction event has been pushed off from 2034 to 2035," Social Security Commissioner Martin O'Malley said in a statement. What reports reveal about Social Security, MedicareSocial Security's new 2035 depletion date applies to its combined trust funds. The Medicare Hospital Insurance trust fund — used to fund Part A benefits — saw the biggest improvement in this year's trustees report.

Persons: Valerie Macon, Martin O'Malley, O'Malley, — Organizations: Social Security Administration, Afp, Getty, Social Security, Social, Medicare, Insurance Trust, Disability Insurance Trust, Medicare Hospital Insurance, Insurance Trust Fund, Department Locations: Burbank , California

☆ Americans will lose full Social Security benefits in 11 years, according to the program's trustees — a year later than expected
▼ + stars: | 2024-05-06 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

Full Social Security benefits are expected to run out in 2035, per the program's trustees. AdvertisementAs more Americans fear being unprepared for retirement — and rely solely on Social Security — those full benefits might not be long-lived. Meanwhile, among the income that typical retirees do receive, just under 80% see income from Social Security. The latest estimates on Social Security also come as the US economy braces for a "peak boomer" wave of new retirees. That's the biggest group of boomers retiring yet, and, per that analysis, many will end up having to rely on Social Security benefits to stay afloat.

Persons: That's, —, William Arnone, Martin O'Malley, Kevin Hern Organizations: Security, Social Security, Service, National Academy of Social Insurance, Insurance Trust, Disability Insurance Fund, Social, Survey, Alliance, Lifetime, GOP, Republican

☆ 3 things America can do to solve its retirement crisis, according to BlackRock chief Larry Fink
▼ + stars: | 2024-03-26 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +5 min

Read previewAmerica has a real retirement crisis on its hands — and there are three things it can do to help solve it, according to BlackRock chief Larry Fink. In his annual letter to investors, the CEO of the world's biggest asset manager pointed to an unfolding crisis for current and future retirees. 46% of Americans aged 55-65 don't have any cash invested in a personal retirement account, according to 2022 Census data. Help retirees spend their savingsMost retirees are uncomfortable dipping into their pile of savings. Give young people a reason to want to investFear is one of the main obstacles preventing young people from investing in their retirement, Fink said.

Persons: —, Larry Fink, Fink, " Fink, AARP —, BlackRock, I've, Gen Zers Organizations: Service, BlackRock, Center for Retirement Research, Business, Security, Congressional, Office, Insurance Trust Fund, Social Security, AARP, University of Michigan, America, McKinsey & Company Locations: America, Australia, BlackRock

☆ Baby Boomers are approaching 'peak burden' on the economy
▼ + stars: | 2024-02-04 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +6 min

A wave of retiring Boomers means the generation will soon be at "peak burden" to the economy. It's the Baby Boomers, who are aging fast and approaching their "peak burden" years in regard to their drag on the economy and the resources of younger generations. Advertisement"The peak burden is [when] all the baby boomers have hit retirement," Millar told Business Insider. And it isn't the case that Baby Boomers will derail economic growth nearly as much as, say, a full-blown recession, according to Dean Baker, an economist who described the Baby Boomers as a "time bomb" in a 1998 paper. In 2022, empty-nester baby boomers owned 28% of large homes in the US, a Redfin analysis found, double the share of millennial families.

Persons: —, Zers, Jonathan Millar, Millar, Dean Baker, That's, Boomers, David Rosenberg, Baker, Gen Organizations: Boomers, Service, Barclays, National Association of Realtors, Chamber of Commerce, Rosenberg Research, Social, Insurance Trust Fund, Social Security Administration Locations: Millennials

☆ Here’s why Social Security and Medicare advocates fear Mike Johnson’s speakership
▼ + stars: | 2023-11-05 | by ( Manav Tanneeru | Tami Luhby | ) edition.cnn.com time to read: +6 min

Here’s what’s not up for debate: Social Security and Medicare are in financial trouble, and the nation’s debt is on an unsustainable trajectory. Spending on Social Security and Medicare is projected to soar as the nation ages, putting more pressure on Congress to address the programs. Advocates’ concernsAdvocates, however, argue that lawmakers can hide behind the debt commission and avoid taking individual blame for agreeing to benefit cuts. “The new speaker has made it clear he’s not a friend to seniors, Social Security or Medicare,” said Max Richtman, CEO of the National Committee to Preserve Social Security and Medicare. “So if you want to keep Social Security solid, you have to do all that stuff and a lot more.”This story has been updated with additional information.

Persons: Mike Johnson, shivers, Johnson, Here’s what’s, ”, That’ll, it’s, Max Richtman, “, Joe Biden, Biden, Charles Blahous, ” Blahous Organizations: CNN, Social Security, Republican, Medicare, Congressional, Office, American Enterprise Institute, National Committee, Preserve Social Security, George Mason University, Committee, RSC

☆ Medicare funding shortfall may be 'life and death' for millions of Americans, lawmaker says. Here's why taxes are a sticking point
▼ + stars: | 2023-10-03 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

Retirees who rely on Medicare for health-care coverage may see those benefits diminish in as soon as eight years. The program's hospital insurance trust fund, which pays for Medicare Part A benefits including inpatient hospital care, may only pay 100% of benefits through 2031, according to projections from Medicare's trustees. When it comes to repairing the programs' funds, Congressional lawmakers generally have two choices: raise taxes, cut benefits or a combination of both. "It's simple arithmetic: raise revenue or cut benefits," Whitehouse said of preserving Medicare. "If we abide by what seemed like a bipartisan commitment not to cut benefits," said Whitehouse, referring the State of the Union earlier this year, "we must safeguard Medicare by raising revenue."

Persons: Sen, Sheldon Whitehouse, Whitehouse, Joe Biden Organizations: Medicare, Finance, Social Security, Security

☆ Social Security's trust funds are running dry. Here are 4 things to know
▼ + stars: | 2023-09-11 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

The vast majority of older Americans get Social Security benefits, which either partially or even fully fund their income in retirement. Social Security is 'America's pension safety net'Virtually every retiree receives some sort of guaranteed income stream — and Social Security is "by far" the most prominent of these income sources, Blanchett said. About 97% of Americans age 60 and older either receive or will collect Social Security benefits, according to Social Security Administration data. Workers would continue to pay Social Security payroll taxes, and those collected funds would still be payable to retirees. There will be 'losers'Congress will almost surely tweak Social Security to fix the solvency problem.

Persons: MoMo, David Blanchett, Blanchett, Doug Boneparth, Lorie Konish Organizations: CNBC's, Finance, Security, U.S, Social Security, Prudential Financial, CNBC, Social Security Administration, Insurance, Workers, Social, SSA Locations: PGIM, New York

☆ Are U.S. seniors among the developed world's poorest? It depends on your point of view
▼ + stars: | 2023-08-05 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Peopleimages | E+ | Getty ImagesIs old-age income poverty too high? Consider this thought exercise: What is a tolerable poverty rate among American seniors? This ranks the U.S. behind 30 other countries in the 38-member bloc, which collectively has an average poverty rate of 13.1%. That old-age income poverty rate has declined by over two-thirds in the past five decades, according to the Congressional Research Service. Researchers seem to agree that a looming Social Security funding shortfall is perhaps the most pressing issue facing U.S. seniors.

Persons: Andrew Reilly, Reilly, Mitchell, David Blanchett, —, Zhe Li, Joseph Dalaker, hurtling, Olivia Mitchell, Blanchett Organizations: Organization for Economic Co, U.S, Employment, Labour, Social Affairs, Social Security, OECD, Security, Census, Congressional Research Service, CRS, Prudential Financial, Social, Insurance Trust Fund, Olivia Mitchell University of Pennsylvania, Pension Research, Social Security Administration Locations: U.S, Mexico, that's, PGIM, American

☆ Social Security, Medicare reform fight shows divisions among Trump, DeSantis and Pence
▼ + stars: | 2023-06-08 | by ( Kevin Breuninger | ) www.cnbc.com time to read: +9 min

DeSantis has since reversed himself, assuring in recent months that Republicans are "not going to mess with Social Security." Tens of millions of U.S. seniors depend on Social Security and Medicare benefits, and that number is growing as the population ages. Strong majorities of U.S. adults across the political spectrum consistently say they oppose cutting Medicare and Social Security benefits. But many others, including party leaders, have bristled at accusations that the GOP wants to gut Social Security and Medicare. "Social Security, I would do the same thing," he added.

Persons: Mike Pence's, Ron DeSantis, Pence, Donald Trump, Trump, Joe Biden, DeSantis, Trump pollster, Donald Trump's, Steven Teles, Teles, Andrew Caballero, reynolds, We're, Nikki Haley, South Carolina Sen, Tim Scott, meanwhile, Biden, Sen, Rick Scott, Mitch McConnell, Scott's, Kevin McCarthy, Steve Scalise, Elise Stefanik, Jonathan Ernst, Andrew Bates, Paul Ryan, Ryan, Mitt Romney's, Barack Obama, Lady Casey DeSantis, Peter Zay Organizations: Social Security, Republican, Florida Gov, GOP, Great Society, White, Republican Party, Johns Hopkins University, Niskanen, Team Trump Volunteer Leadership, Grimes Community, AFP, Getty, Social, Medicare's, Insurance, Former South Carolina Gov, Republicans, Senate, U.S . Rep, U.S, Capitol, Reuters, Anadolu Agency Locations: Grimes , Iowa, South Carolina, Ky, Washington , U.S, Congress, Lexington, SC

☆ Social Security is in jeopardy of cutting benefits in just a decade, and no one's stepping in to fix it
▼ + stars: | 2023-03-31 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The latest Social Security and Medicare Board of Trustees report lays out estimates for both programs. The trustees find that Social Security will be unable to pay full benefits in about 10 years. Importantly, that doesn't mean that, past 2033 or 2034, there will be no Social Security benefits or the program will be bankrupt. "House Republicans are determined to cut Social Security and Medicare," House Minority Leader Hakeem Jeffries wrote on Twitter on Wednesday. "With informed discussion, creative thinking, and timely legislative action, Social Security can continue to protect future generations."

☆ Social Security trust funds depletion date moves one year earlier to 2034, Treasury says
▼ + stars: | 2023-03-31 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

The Social Security trust funds that about 67 million Americans rely on for benefits are scheduled to be depleted in 2034, one year earlier than was projected last year, according to the annual trustees' report released by the Treasury Department on Friday. Unless Congress takes action, at that time, 80% of scheduled benefits will be payable from the combined funds for old age and survivors insurance and disability insurance. The new depletion date comes as the trustees updated their projections for the U.S. economy to include recent output and inflation. Meanwhile, Medicare's hospital insurance trust fund will be able to pay 100% of scheduled benefits until 2031, three years later than projected last year. The White House earlier this month laid out a plan to extend the solvency of Medicare's hospital insurance trust fund, also known as Medicare Part A, which covers hospital, nursing facility and hospice services for eligible beneficiaries.

☆ Biden’s Tax and Rationing Plan for Medicare
▼ + stars: | 2023-03-08 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

President Biden on Tuesday rolled out a plan he says will shore up Medicare for decades, and we’re all supposed to believe the spin: looming insolvency averted. But this proposal is really a huge tax increase paired with prescription-drug rationing that does nothing to reform the health entitlement, and the tax ratchet is only beginning. The White House in a fact sheet previewed a proposal for “extending Medicare solvency” in its budget outline for fiscal 2024, set for release Thursday. Mr. Biden says he’ll extend “the life of the Medicare Trust Fund by at least 25 years,” without “benefit cuts” while “lowering costs for Medicare beneficiaries.” The program’s hospital insurance trust fund is set to start coming up short in 2028.

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