ABOVE VIDEO: FBN’s Edward Lawrence on a new report on when Social Security and Medicare will run out of money.
(FOX BUSINESS) – Social Security’s reserve funds are expected to be depleted in 2035, at which time the program will no longer be able to pay out benefits.
That’s according to the annual Social Security and Medicare trustees report released on Monday, which said total costs of the program, which covers the old age and disability insurance programs, will exceed income in 2020 – for the first time since 1982.
That’s two years later than projected last year, but means the program will have to dip into its reserves to cover benefits at that time.
By 2035 those reserves will be depleted, and 80 percent of benefits will be payable.
In 2018, the trustees forecast that 100 percent of benefits would be covered through 2034, meaning the trust fund gained an extra year before expected depletion. However, the trustees are still urging lawmakers to take action sooner than later.
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