Social Security’s retirement trust fund is projected to face a funding shortfall in 2032, a year earlier than last year’s projections, according to an annual report released Tuesday. The looming challenge for the programs is a partial funding gap, not a collapse. Even after trust fund depletion, the system will continue issuing benefits, albeit at reduced amounts.

Impact on Beneficiaries

Rising healthcare costs and government spending have contributed to a projected depletion date that is less than 10 years from now. Social Security Commissioner Frank Bisignano said the administration is committed to protecting and strengthening Social Security, eliminating waste, fraud, and abuse, and ensuring program integrity.

The new funding shortfall is mainly the result of lower projected birth rates, reduced immigration, and reduced trust fund revenue due to the costs of the massive tax and spending bill signed into law last summer. About 70.1 million people are enrolled in Medicare, the federal government’s health insurance that covers those 65 and older, as well as people with severe disabilities or illnesses.

AARP’s CEO Myechia Minter-Jordan said the latest numbers should be a wake-up call for Congress to act. Americans have worked hard and paid into Social Security their entire lives, and they deserve to count on it when they retire. No family should see any cuts to what they’ve earned in Social Security.

Original reporting: Texarkana Gazette — read the source article.