The Social Security program is expected to dip into its reserves this year as costs exceed its income — three years sooner than had been expected, The Wall Street Journal reported Tuesday.
Citing the latest annual report from the trustees of Social Security and Medicare, the Journal reported Social Security will have to go into its nearly $3 trillion trust fund to cover benefits.
The program's income comes from tax revenue and interest from its trust fund, which will be depleted in 2034 unless Congress takes action to shore up the program's finances, the Journal reported.
The report also said Medicare's hospital insurance fund would be depleted in 2026 — three years earlier than anticipated in last year's report — and would be able to handle 91 percent of costs, the Journal reported.
The Journal noted the aging population is boosting the costs of Social Security and Medicare, while revenue gains lag due to slower growth in the economy and the labor force.
About 61.5 million people receive retirement or disability benefits from Social Security and 58.4 million receive Medicare.
About 23 percent of older married couples rely on Social Security as their main source of income, according to the program.
"Workers should panic, but not because of the most recent trustee report," Bankrate analyst Taylor Tepper told CBS News. "Workers should panic because they aren't saving nearly enough for retirement."
Treasury Secretary Steven Mnuchin said in a statement the Trump administration's efforts to cut taxes, reduce regulatory burdens, and overhaul trade agreements would boost economic growth and generate new money for the programs, the Journal reported.
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