Can You Depend on Social Security and Medicare for Your Retirement?
The answer is “it depends.”
According to the Wall Street Journal, June 3, 2022, the trustees for the Social Security Trust Funds say the program’s combined reserves will be depleted in 2035, one year later than projected last year.?Social Security (SS) consists of two programs, one for retirees and the other for people with disabilities.
The SS trust fund (money put aside over and above annual income) is projected to last until 2034. Once the trust money runs out, SS payments will rely on deductions from earned income and are expected to provide only 80% of current benefits.?The good news for those currently receiving SS is that payments are estimated to rise 8% next year (2023) due to inflationary pressure.?The Disability fund will go another 75 years.
Reserves for Medicare hospital insurance are now forecast to run out in 2028.
Over the long term, there will be fewer workers contributing to SS and Medicare and more retirees receiving SS and Medicare benefits.?In order to continue the program in the future at reasonable levels, Congress must either raise payroll taxes or reduce benefits or both.
Money Coach comment:?Our Democracy is failing us.?Our quality of life is changing and will continue to do so unless our elected officials focus on mankind and not on getting reelected.?We can help by voting for better people!