Retirement alert Medicare will be insolvent by 2026, Social Security by 2035, report warns Chicag The financial condition of the governments bedrock retirement programs for middle and working class Americans remains shaky, with pointed toward insolvency by 2026, according to a report Monday by the governments overseers of Medicare and Social Security. It paints a sobering picture of the programs, though its relatively unchanged from last years update. Social Security would become insolvent in 2035, one year later than previously estimated. Both programs will need to eventually be addressed to avert automatic cuts should their trust funds run dry. Neither President nor Capitol Hills warring factions has put politically perilous cost curbs on their to do list. The report is the latest update of the governments troubled fiscal picture. It lands in a capital that has proven chronically unable to address it Trump has declared benefit cuts to the nations signature retirement programs off limits and many Democratic presidential candidates are calling for expanding Medicare benefits rather than addressing the programs worsening finances. Many on both sides actually agree that it would be better for Washington to act sooner rather than later to shore up the programs instead of waiting until theyre on the brink of insolvency. The latest report from the governments overseers of Medicare and Social Security show the financial condition of the bedrock retirement programs for middle and working class Americans remains shaky. Mondays report paints a sobering picture of the programs, though its relatively unchanged from last years update. Social Security would become insolvent in 2035, one year later than previously estimated. Medicare is pointed toward insolvency by 2026. But potential cuts such as curbing inflationary increases for Social Security, hiking payroll taxes, or raising the Medicare retirement age are so politically freighted and toxic that Washingtons power players are mostly ignoring the problem. Just as single income families began to vanish in the last century, many of Americas elderly are now forgoing retirement for the same reason: They dont have enough money. Rickety social safety nets, inadequate retirement savings plans and sky high health care costs are all conspiring to make… The report by three Cabinet heads and Social Securitys acting commissioner, urges lawmakers to take action sooner rather than later to address these shortfalls, so that a broader range of solutions can be considered and more time will be available to phase in changes while giving the public adequate time to prepare. If Congress doesnt act, both programs would eventually be unable to cover the full cost of promised benefits. With Social Security that could mean automatic benefit cuts for most retirees, many of whom depend on the program to cover basic living costs. For Medicare, it could mean that hospitals, nursing homes, and other medical providers would be paid only part of their agreed upon fees. Follow on Facebook and on Twitter. Youve reached your monthly free article limit. Already have digital access? Print subscriber?