The coronavirus pandemic will cause the main U.S. Social Security trust fund reserves to be depleted in 2033, a year sooner than an estimate made a year ago, as a steep drop in employment shrank revenue, the U.S. Treasury said on Tuesday.
The Treasury said the Old Age and Survivors Trust Fund, which pays retirement benefits, would be able to pay 76% of scheduled benefits after 2033 from continuing payroll tax revenues.
The Medicare Hospital Insurance Fund reserves are expected to be depleted in 2026, the same as last year's estimate. This will allow Medicare to pay only 91% of scheduled "Part A" hospital and other benefits from expected revenues at that time, Treasury said. Annual reports on both the Social Security and Medicare trust funds again said that congressional action will be needed in coming years to shore up the programs financially, by increasing revenue, cutting benefits, or finding other cost savings.
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