US Social Security and Medicare Trust Funds Face Depletion by Early 2030s

The Social Security Administration’s Old‑Age and Survivors Insurance (OASI) trust fund is projected to be exhausted by 2032. Without congressional action, benefits could be reduced by as much as 22 percent, though a proposal to merge the OASI and Disability Insurance trusts might limit cuts to about 17 percent.

A new analysis from the Center for Retirement Research at Boston College notes that Medicare’s Hospital Insurance (Part A) trust fund is expected to run out in 2033. Overall Medicare spending is projected to exceed Social Security spending within roughly 11 years, driven by rising costs in Parts B and D, which increase the financial burden on taxpayers and beneficiaries alike.