Social Security Trust Fund Report Brings More Bad News for Seniors

May 6, 2024 - Blog - Health - Press Releases - Social Security

Social Security Trustees Report shows the retirement Trust Fund will become exhausted in 2033.

WASHINGTON, D.C. - Ways and Means Committee Chairman Jason Smith (MO-08) pointed to the dire state of Social Security's retirement insurance program in a statement about the 2024 Social Security and Medicare Trustees Reports:

"Once again, the Social Security Trustees have confirmed that Social Security's retirement insurance Trust Fund is operating on borrowed time. In less than a decade, Social Security's Old-Age and Survivors Insurance Trust Fund, which paid out more than $1.2 trillion in monthly retirement insurance benefits to almost 60 million seniors, their dependents, and survivors in 2023, is projected to become exhausted - at which point beneficiaries will face a 21 percent benefit cut. Medicare beneficiaries will face an 11 percent cut.

"It's important for Congressional leaders to come together in a bipartisan manner to ensure that this program continues to provide security to current and future retirees who contributed throughout their working lives as well as their families. We should be preserving and strengthening Social Security and Medicare for today's retirees and tomorrow's workers and that starts with strong economic growth.

"Unfortunately, President Biden's own budget shows that his economic agenda would actually harm Social Security by cutting revenues to the Trust Funds by $17 billion over the next decade. Ways and Means Republicans are focused on growing our economy and lowering prices for seniors, not cutting benefits. Our tax teams are focused on building on the success of the Trump tax cuts that created new jobs, boosted paychecks, and created more revenues while lowering taxes."

Key Background:

Social Security: The Social Security Trustees Report for 2024 shows seniors continue to be hurt by President Biden's record of high prices and weak growth:

• Social Security's Old-Age and Survivors Insurance (OASI) Trust fund is projected to be unable to pay full benefits starting in 2033.
• If the OASI Trust Fund becomes exhausted, Social Security will only be able to pay 79 percent of scheduled benefits to seniors and their families.
• The Trustees continue to project Social Security's total costs to grow faster than its income indefinitely.
• President Biden's budget would further harm the Social Security Trust Funds by $17 billion over the next decade.

Medicare: The Medicare Trustees Report for 2024 shows:

• Expenditures outpace revenues creating a $2.4 trillion shortfall for the Hospital Insurance Trust Fund's long-term outlook.
• Effective in 2035, the HI Trust Fund will only be able to cover 89 percent of expenditures, resulting in an immediate 11 percent Medicare cut that the Biden Administration is doing nothing to avert.