Photo: Frederic J. Brown/AFP/Getty Images

The Social Security program's costs are projected to begin exceeding its income in 2020, according to an annual report from the trustees of Social Security and Medicare.

The big picture: The increasing costs of both the retirement and disability programs that fall under Social Security will cause a financial shortfall for the first time since 1982, forcing the program to tap into its nearly $3 trillion trust fund. Evaluated independently, the retirement trust fund will become depleted by 2034, while the disability reserves will run out by 2052.

Highlights:

  • According to the report, the shortfall is the result of retiring baby boomers increasing the number of Social Security beneficiaries at a faster rate than covered workers — who belong to "lower-birth-rate generations" — are entering the workforce.
  • Though disability reserves are expected to be depleted by 2052, that's 20 years later than previously projected, thanks to a continued decline in new disabled-worker applications.
  • The Social Security and Medicare programs' combined cost are expected to jump from 8.7% of GDP in 2019 to 11.6% by 2035. Most of the rising costs are a result of Medicare getting more expensive, the trustees wrote.

The bottom line, per the report: "The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust to them. Implementing changes sooner rather than later would allow more generations to share in the needed revenue increases or reductions in scheduled benefits."

Go deeper

4 mins ago - Sports

13 members of St. Louis Cardinals test positive for coronavirus

Photo: Hannah Foslien/Getty Images

Seven players and six staff members from the St. Louis Cardinals have tested positive for the coronavirus over the past week, prompting the MLB to postpone the team's upcoming four-game series against the Detroit Tigers.

Why it matters: Seven consecutive Cardinals games have now been canceled after St. Louis became the second team to report a significant coronavirus outbreak, just two weeks into the season.

Updated 44 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 p.m. ET: 18,149,860 — Total deaths: 690,624 — Total recoveries — 10,753,318Map.
  2. U.S.: Total confirmed cases as of 3 p.m. ET: 4,690,404 — Total deaths: 155,124 — Total recoveries: 1,468,689 — Total tests: 56,812,162Map.
  3. Politics: White House will require staff to undergo randomized coronavirus testing — Pelosi says Birx "enabled" Trump on misinformation.
  4. Business: Virtual school is another setback for retail — The pandemic hasn't hampered health care.
  5. Public health: Former FDA chief says MLB outbreaks should be warning sign for schools.
45 mins ago - Podcasts

White House adviser Peter Navarro talks TikTok

President Trump has relaxed his threat to immediately ban the popular social media app TikTok, giving Microsoft room to negotiate an acquisition from Chinese tech giant ByteDance.

Axios Re:Cap digs into the situation with Peter Navarro, the White House's top trade adviser and a noted China hawk, who suggests Microsoft should be forced to make unrelated concessions related to its China operations.