Medicare and Social Security go-broke dates are pushed back in a ‘measure of good news’

WASHINGTON — The go-broke dates for Medicare and Social Security have been pushed back as an improving economy has contributed to changed projected depletion dates, according to the annual Social Security and Medicare trustees report Monday. Meanwhile, Social Security’s trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2035, instead of last year’s estimate of 2034. Social Security Administration Commissioner Martin O’Malley called the report “a measure of good news,” but told The Associated Press that “Congress still needs to act in order to avoid what is now forecast to be, in absence of their action, a 17% cut to people’s Social Security benefits.” About 71 million people — including retirees, disabled people and children — receive Social Security benefits. A March 2023 poll by The Associated Press-NORC Center for Public Affairs Research shows that most U.S. adults are opposed to proposals that would cut into Medicare or Social Security benefits, and a majority support raising taxes on the nation’s highest earners to keep Medicare running as is. The former president said “there is a lot you can do in terms of entitlements, in terms of cutting.” Nancy Altman, president of Social Security Works, an advocacy group for the social insurance program, said Monday’s report shows that “Congress should take action sooner rather than later to ensure that Social Security can pay full benefits for generations to come.” AARP CEO Jo Ann Jenkins said “ the stakes are simply too high to do nothing.” Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said “the longer Congress delays reform, the more challenging the options become, and these programs are too important to continue to let them drift toward insolvency.