Social Security faces insolvency in 2033, one year sooner than previously expected

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Social Security faces insolvency in 2033, one year sooner than previously expected
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Social Security and Medicare funds face long-term financial crunches that could mean some benefits get cut sooner, according to annual government reports.

Rep. Ro Khanna, R-Calif., discusses the Los Angeles school strike, fallout from Silicon Valley Bank and his proposal to make social security solvent.could run out of money as soon as 2033, a year earlier than previously projected, according to a new government report released Friday.

Unless major changes are made before 2034 to shore up the entitlement program, more than 66 million Americans would see a benefit reduction between about 23% to 25%. Medicare, meanwhile, faces an even greater financial shortfall in the coming years: The report showed that Medicares's hospital insurance trust fund – which is known as Part A and helps to cover inpatient hospital stays – will only be able to pay scheduled benefits in full until 2031, according to the report. That is three years later than the trustees previously projected.

U.S. Treasury Secretary Janet Yellen testifies about the Biden Administration's FY2024 federal budget proposal before the Senate Finance Committee in the Dirksen Senate Office Building on Capitol Hill on March 16, 2023 in Washington, DC.

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