WASHINGTON -Trust funds supporting Social Security and Medicare benefits for U.S. seniors showed slight improvement as stronger-than-forecast economic growth and productivity has boosted revenue collections, according to trustees' reports released by the U.S. Treasury on Monday.The Medicare Hospital Insurance Trust Fund's reserves are now expected to be depleted in 2036, five years later than was forecast in last year's report, Treasury said.
With the Baby Boom generation retiring, Congress will ultimately need to strengthen the program by raising revenues, reducing costs, or cutting benefits. The Biden administration has rejected benefit cuts and has proposed raising payroll taxes on Americans earning over $400,000.
Based on increased economic growth and payroll tax collections, the main Social Security Old Age and Survivors Trust Fund would see its reserve depletion date delayed by about seven months to November 2033.