Saturday, May 14, 2011

Social Security and Medicare go bust even sooner, according to reports issued Friday the 13th

US Treasury Secretary announced yesterday that both Social Security and Medicare will go bust soonter than predicted.
The Social Security Trust Fund, even with creative accounting, would exhaust its assets by 2036 (previously the year had been 2037), forcing a 23% cut in benefits.

Medicare would become broke in 2034.

Heather Scott has the story May 13 on Forexlive here.

Robert Dominguez has a similar story in the New York Daily News (website url) here

The Social Security Board of Trustees has a press release on the story (website url) here leading to a formal report (PDF) that was posted late May 13.  To quote the first point: “The projected point at which the combined Trust Funds will be exhausted comes in 2036 -- one year sooner than projected last year. At that time, there will be sufficient non-interest income coming in to pay about 77 percent of scheduled benefits.”

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