Social Security will not be able to pay all benefits by 2034

The COVID-19 pandemic has affected the world in many ways. It caused losses in work and housing.The government seems to be trying to pass financial aid Irritation check, Suspension of evictions and child income tax credits. Nevertheless, in terms of social security benefits, they seem to have come to an end. The social insurance plan consists of retirement, disability, and survivor benefits, applicable to people who are 62 years of age or older, disabled or blind, and have sufficient work points. However, this will be a thing of the past in the next 12 years, which will not only affect baby boomers, but also millennials and Gen Z.

According to the annual report released by the trustee of Social Security and Medicare on Tuesday, if Congress does not resolve the long-term funding problem of the program, Social Security will have to cut benefits before 2034. CNN According to the report, due to the pandemic and economic recession, this is one year earlier than the first report last year. This loss of benefits will threaten retirement pensions and increase the cost of health care for the elderly in the United States.

CNBC News According to the report, although there is no change compared with last year’s report, it pointed out that Medicare’s hospital insurance fund will be exhausted in 2026. This will affect payments to doctors, hospitals and nursing homes. This means that they will not receive full compensation from Medicare, and the patient may be responsible for paying the insurance costs.

The trustee is urging lawmakers to take immediate action and resolve the chronic shortage, but Congress has delayed doing so. Legislators can increase payroll taxes, reduce benefits, or formulate some combination of the two to provide solutions. I hope President Joe Biden can do some tasks to save social security. If you remember, during the campaign, he talked about expanding social security benefits. However, so far, his economic agenda has not stated what the future of welfare will look like.

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