TOWSON, Md. — Inflation is making it tough for many people to get by, especially those on a fixed income as Social Security administrators warn payments could run out in less than 15 years.
The six-year timeline for Medicare is even more urgent.
These benefits which many Americans depend upon could dry up, so Social Security and Medicare administrators are asking Congress to step in and step up before it’s too late.
Both Social Security and Medicare trustees fear Americans will stop getting full Social Security benefits in about 13 years if Congress doesn't act.
The trustees annual report states the combined Social Security trust funds, which help support payouts for the elderly and disabled, are projected to run dry in 2035.
It's even sooner for Medicare.
They said the hospital insurance trust fund known as ‘Medicare Part A’ will only be able to pay scheduled benefits for six more years until 2028.
The solvency of Social Security has been a concern for decades.
A Social Security official says Congress needs to take action and raise revenues by a third, cut costs by a quarter or some combination of the two.
Those who receive Social Security checks could see the largest cost of living increase in more than 40 years.
The senior advocacy group Senior Citizens League estimates next year's cost of living adjustment for social security will be 8.6%.
It would mean an increase of more than $140 to the current monthly Social Security checks.
The Social Security Administration will set the 2023 cost of living adjustment in October based on the three previous months of inflation data.
Because inflation is running at a 40-year high in the first half of 2022, the actual number could be much different than what the Senior Citizen's League currently predicts it will be.
The cost-of-living increase is a big concern for seniors if it doesn't keep up with inflation because their spending power goes down.
Many people retiring in six to 12 years are worried if there will be anything left for them when it's time to collect their benefits.
