U.S. Debt Deficit Digest

Entitlement crisis: Social Security and Medicare under pressure

Entitlement crisis: Social Security and Medicare under pressure

Social Security's retirement trust fund remains projected to exhaust reserves around 2032-2034, implying only 78%-83% of scheduled benefits absent congressional action and possible cuts near 22%-26%. New York retiree analysis highlights effects on household budgets and state economic output, while debate continues over the taxable wage cap, benefit changes, retirement age, and taxation; no reform has passed.

Sources (3)
Updated Oct 1, 2026