For the first time since 1982, Social Security has to dip into the trust fund to pay for the program this year.
If that doesn’t sound dire enough, in their annual report, the Social Security trustees said that Medicare’s hospital insurance fund will be depleted in 2026, reserves for the fund that pays disability benefits would be emptied in 2032, and all Social Security reserves would be exhausted by 2034. That is three years earlier than projected last year, Marketwatch noted.
Don’t worry, that doesn’t mean that Mom and Dad won’t have any Social Security to rely on after 2034. Instead they’ll just have to learn to get by on about three-quarters of the benefits. That’s the amount the Social Security’s trustees said tax income alone could cover. But, hey, they only need three-quarters of their food, home, and medical coverage, right?