The Hospital Insurance Trust Fund, or Medicare Part A, which helps pay for services such as inpatient hospital care, is projected to be able to pay scheduled benefits until 2026. If the fund’s reserves are depleted, total program income will be enough to cover only 91% of benefits that year, and only 78% in 2045, according to the report for this fund. The Disability Insurance Trust Fund, which pays disability benefits, is in relatively better shape than the OASI fund, in part because applications have been decreasing since 2010. The number of disabled-worker beneficiaries receiving payments has also decreased. So, that fund is estimated to become depleted in 2057, notably eight years earlier than the 2020 estimate. The shortfall means that only 91% of benefits will be payable.
Whenever I give a presentation about retirement planning, I talk about how Social Security should factor into people’s plans. Inevitably, a young adult will voice a concern that Social Security won’t be of much help to them. And yet, we know many people heavily rely on it.
“Having strong Social Security and Medicare programs is essential in order to ensure a secure retirement for all Americans, especially for our most vulnerable populations,” Treasury Secretary Janet Yellen said in a statement.
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