The recent report by the Social Security trustees indicates that the trust fund may run out of cash in eight years. If Congress does not intervene, benefits for over 60 million retirees and their families could be reduced by 23%.

The deadline is earlier than anticipated, primarily due to a new law that increased benefits for nearly 3 million former public-sector workers. Trustees have also revised their assumptions about future wages and birth rates.

One of the fundamental challenges facing the program is the aging population of the United States, with thousands of baby boomers reaching retirement age daily.

For every person receiving Social Security, there are now fewer young workers contributing taxes to support the system. Once the trust fund is depleted, incoming payroll taxes will only cover 77% of promised benefits.

The Social Security disability payments trust fund is projected to remain solvent until 2099. Combining the two funds would extend the solvency until 2034, after which benefits would be reduced by 19%.

Congress has the option to address the shortfall by increasing taxes, reducing benefits, or a combination of both. Acting sooner would allow for a broader range of solutions and give the public more time to adjust.

Some experts warn that delaying action on Social Security could have serious consequences. President Trump has pledged not to change benefits, but without intervention, automatic cuts will be triggered once the trust fund is exhausted.

Advocates suggest that taxing higher income earners could generate enough revenue to sustain full benefits. Congressional Republicans have proposed alternative solutions, such as raising the retirement age and adjusting the benefits formula.

The report comes at a time when the Social Security Administration is reducing its workforce, leading to longer wait times and reduced services. Critics argue that these cuts do little to address the program's long-term financial issues.

The Medicare trust fund, which helps cover hospital insurance, is also projected to be depleted in eight years due to rising medical costs. Once exhausted, Medicare will only have enough funds to cover 89% of promised benefits.