The Social Security Administration said Monday it has enough funds to pay all scheduled benefits and associated administrative costs until 2035, one year later than projected last year.

"This year's report is a measure of good news for the millions of Americans who depend on Social Security, including the roughly 50% of seniors for whom Social Security is the difference between poverty and living in dignity – any potential benefit reduction event has been pushed off from 2034 to 2035," said Martin O'Malley, Commissioner of Social Security, in a news release.

The SSA said the projected long-term finances of the program improved this year "primarily due to an upward revision to the level of labor productivity over the projection period and a lower assumed long-term disability incidence rate."

"More people are contributing to Social Security, thanks to strong economic policies that have yielded impressive wage growth, historic job creation, and a steady, low unemployment rate," O'Malley said in the news release. "So long as Americans across our country continue to work, Social Security can – and will – continue to pay benefits."

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OASI Fund able to pay 100% through 2033

According to this year's report, the Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100% of total scheduled benefits until 2033. At that time, the fund's reserves will become depleted and continuing program income will be sufficient to pay 79% of scheduled benefits.

The Disability Insurance (DI) Trust Fund is projected to be able to pay 100% of total scheduled benefits through at least 2098. The report states that if the OASI Trust Fund and DI Trust Fund projections are combined, the resulting projected fund would be able to pay 100% of total scheduled benefits until 2035.

After that, the fund's reserves will become depleted and continuing total fund income will be enough to pay 83% of scheduled benefits. The report also notes that the two funds could not actually be combined unless there were a change in the law, but that the combined projection of the two funds is frequently used to indicate the overall status of the Social Security program.

The report also said that the Hospital Insurance Trust Fund, one of two funds used to fund Medicare, will be able fund the program until 2036, which is five years later than reported last year.

Once those funds are depleted, Medicare would be able to cover 89% of scheduled benefits, according to the report.

Biden: 'Social Security remains strong'

Medicare is the country's health insurance program for people 65 or older, or those with severe illnesses or disabilities. According to its website, more than 66 million people in the U.S. get their health coverage from Medicare.

"Lawmakers have many options for changes that would reduce or eliminate the long-term financing shortfalls," the SSA said in the news release. "Taking action sooner rather than later will allow consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare."

"Medicare is stronger and Social Security remains strong," President Joe Biden said in a statement Monday. "As long as I am President, I will keep strengthening Social Security and Medicare and protecting them from Republicans’ attempts to cut benefits Americans have earned."

Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at [email protected].