Medicare to Become Insolvent In 8 Years, Social Security in 16

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But as Robert Pear of The New York Times notes, based on the new trustees' reports, "so far that does not appeared to have happened".

Here's the problem. There are no such "trust funds".

"The HI fund again fails the test of short-range financial adequacy, as its trust fund ratio is already below 100% of annual costs, and is expected to decline continuously until reserve depletion in 2026", the report said.

But when the fund runs dry in 2034, the government will only be able to pay about three-quarters of Social Security benefits, relying on tax income.

His $1.5 trillion tax cut program reduced expected revenues for the two programs over coming years, The Wall Street Journal reported.

Social Security covers 62 million people, split among retired workers and their dependents, survivors of workers who've died and disabled people.

Together, the two programs have been credited with dramatically reducing poverty among older people and extending life expectancy for Americans.

Treasury Secretary Steven Mnuchin downplayed any pending crisis, although he acknowledged Medicare faces many long-standing economic and demographic challenges.

Many Democrats, meanwhile, argue the problem is that the programs aren't generous enough.

Trump administration officials instead are counting on a strong economy to improve the solvency of Social Security and Medicare.

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A Republican within the basic election would all however assure the competing Democrat will change into the subsequent governor. Dana Rohrabacher (R.), the incumbent in California's 48th Congressional District race who won the primary on Tuesday.

The trustees also found Medicare's hospital insurance fund is on pace to run out in 2026.

Costs to the fund will also be slightly higher than last year's estimates, "mostly due to higher-than-expected spending in 2017, legislation that increased hospital spending and higher Medicare Advantage payments", the trust fund report said.

They attributed the circumstances to last year's lower-than-expected wages, revenue-cutting legislation, heightened spending and an aging USA population.

That's what the Social Security and Medicare trustees projected in their 2018 annual report released Tuesday.

Program trustees said Congress must act to beef up the program's account in order to sustain existing services. Medicare "is on track to meet its obligations to beneficiaries well into the next decade".

"However, certain long-term issues persist", the statement added. "Lack-luster economic growth in previous years, coupled with an aging population, has contributed to the projected shortages for both Social Security and Medicare". The way to do that is to legislate modest reforms to the entitlement programs along with higher taxes (including Social Security payroll taxes) for those most able to afford them. Charles Schumer of NY, the Democratic leader.

Medicare's problems are widely seen as more hard to solve.

Social Security recipients are likely to see a cost of living increase of about 2.4 percent next year, working out to roughly $31 a month, government experts said.

Medicare costs will rise from last year's 3.7 percent of GDP to 5.8 percent by 2038.