WASHINGTON, D.C. — Joint Economic Committee Chairman Dan Coats (R-Ind.) said the annual Social Security and Medicare Trustees report released today again highlights why policymakers must address the impending insolvency of these programs.
“This report reiterates the urgent need to make reforms to Medicare and Social Security,” said Coats. “These programs provide much-needed benefits for millions of Americans, and they need to be preserved both for current retirees and future generations. This is not a problem we can continue to ignore.”
According to the report, when today’s 48 year-old worker is eligible for full retirement, the Social Security fund for retirees will only be able to pay out 77 percent of its benefits under the current benefit structure to new and existing recipients.
“The Trustees have been sounding the alarm for years about the looming insolvency of these programs,” said Coats. “The sooner Congress takes action, the less drastic the changes will be. Taking no action will have disastrous consequences for beneficiaries of these programs.”
The Trustees found that the Social Security Old Age and Survivors Insurance Trust Fund will be exhausted by 2035. Furthermore, the Disability Insurance Trust Fund will be exhausted by 2023. The report estimates that the Medicare Hospital Insurance Trust Fund will be exhausted by 2028.
