The Looming Social Security and Medicare Funding Crisis: What You Need to Know.

The Social Security and Medicare trust funds are projected to run dry in 2034 and 2031, respectively, according to annual reports released by their trustees. The estimates are one year earlier than projected last year. The programs are on shaky financial ground due to the aging of the American population, fewer workers paying into the program, and increasing healthcare costs. The reports are a warning to Congress to address the programs' fiscal problems, but elected officials are hesitant to suggest changes that could lead to benefit cuts. President Biden's latest budget proposal did not include a plan to stabilize Social Security's finances, but it did call for extending Medicare's solvency by raising taxes on those earning more than $400,000 a year and allowing the program to negotiate drug prices.