UNITED NEWS INTERNATIONAL (UNI) — Social Security and Medicare are running out of money faster than expected.
Government trustees reported on June 5 that a combination of rising costs and an aging population has slashed the life expectancy of Medicare’s trust fund to just 8 years.
The program is now expected to deplete its funds by 2026, three years earlier than last year’s report found.
Meanwhile, for the first time since 1982, Social Security’s costs will exceed its payroll income plus interest.
The trustees warned the program would be insolvent by 2034.
After 2034, the trustees say Social Security will be able to pay out about three-quarters of the benefits it owes to recipients.
In response to the report, U.S. Treasury Secretary Steven Mnuchin said that both Medicare and Social Security “remain secure,” but emphasized that long-term challenges exist.