My years of experience reporting on Americans’ personal finance concerns have led me to understand on a deep level the reality that Social Security and Medicare face serious financial difficulties — and action needs to be taken to ensure both programs’ longevity.
AARP, the advocacy group for older Americans, supports both federal programs and is working toward their survival.
“Social Security and Medicare are the most effective and essential anti-poverty programs in American history,” AARP wrote. “Social Security serves as the largest source of retirement income for most of its nearly 69 million beneficiaries, while for more than 68 million people, Medicare is the primary and, for many, only source of health care.”
“In these uncertain times, AARP is redoubling its efforts to preserve and strengthen both programs.”
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The conversation about how to meet these objectives can appropriately begin with an acknowledgment that Social Security and Medicare are not giveaways or entitlements.
“They are earned benefits — sacred promises that must be kept,” wrote AARP. “For younger generations, these programs represent an/essential lifeline to future retirement security.”
“For older Americans and individuals with disabilities, they ensure access to necessities like groceries, housing and medical care,” wrote AARP CEO Myechia Minter-Jordan. “Social Security and Medicare embody the best of America’s values: security, dignity and economic stability.
AARP explains Social Security, Medicare urgent needs
At their respective ages of 90 and 60 years, Social Security and Medicare both need periodic updates to stay financially sound for the long term.
“Without congressional action, Social Security benefits could be reduced by nearly 17 percent in the next decade — a loss of about $4,000 a year for the average retired beneficiary,” AARP wrote. “Chronic underfunding has also led to record-long wait times for those seeking assistance or applying for lifesaving disability benefits.”
“Meanwhile,” the nonprofit organization continued, “the Medicare trust fund will be able to pay all benefits until 2035, but long-term fixes are still necessary to ensure its financial health for future generations.”
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Tackling these challenges will require bipartisan cooperation and action.
“We must act now to ensure that after a lifetime of hard work and sacrifice, older Americans can live out their lives with the financial and health security they deserve,” Minter-Jordan wrote.
“Top priorities are strengthening Social Security and Medicare, lowering prescription drug prices, expanding opportunities for financial stability in retirement, and closing the widening gap between the lifespan and the health span.”
Status of Social Security and Medicare program funding
The Social Security and Medicare programs both continue to face specific, significant financing issues, according to a 2025 Social Security and Medicare Boards of Trustees report.
- The Old-Age & Survivors Insurance (OASI)Trust Fund can cover full benefits until 2033, according to the 2025 report. After that, its savings run out and ongoing income would cover about 77% of promised payments.
- The Disability Insurance (DI) Trust Fund is expected to pay full benefits through at least 2099, one year longer than the 2024 projection.
- Looking at OASI and DI together (OASDI), the combined funds could pay full benefits until 2034, a year earlier than the 2024 estimate. After depletion, incoming revenue would cover about 81% of scheduled benefits.
- Even though the OASI depletion year didn’t change, both OASI and OASDI moved closer to depletion by roughly three‑quarters of a year compared with the 2024 outlook.
- The Medicare Hospital Insurance (HI) Trust Fund can pay full benefits until 2033, which is three years sooner than previously projected. After that, incoming money would cover about 89% of costs.
- The Supplementary Medical Insurance (SMI) Trust Fund is considered fully funded long‑term because premiums and federal contributions automatically adjust each year. However, its fast‑rising costs continue to place growing pressure on both beneficiaries and taxpayers.
(Source:Social Security Administration)
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AARP emphasizes importance of Social Security, Medicare
Few institutions are as vital to Americans’ financial and medical stability as Social Security and Medicare.
As people live longer and traditional employer pensions continue to decline, Social Security and Medicare play an increasingly important role in retirement security. Rising costs for everyday essentials also highlight the importance of maintaining benefits that are stable and reliable.
AARP’s long-standing focus on these programs reflects their significance to the more than 100 million older Americans the organization represents.
“As we celebrate Social Security’s 90th anniversary and Medicare’s 60th, I am reminded of President Franklin Roosevelt’s words when he signed the Social Security Act on August 14, 1935,” wrote Minter-Jordan.
“Social Security and Medicare have fulfilled that promise for generations,” Minter-Jordan wrote. “We must ensure they continue to do so for generations to come.”
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