Are Social Security and Medicare In Trouble?
Written by Andrew Havranek
Last updated on August 04, 2014 @ 5:56PM
Created on August 04, 2014 @ 5:02PM
For those of you who are working everyday and plan to retire, the benefits you are expecting may not be the same as they were for your parents and grandparents.
A new report from the Boards of Trustees of both Social Security and Medicare believe the trust funds which pay into the programs will be dried up in the early 2030's, with one trust fund being depleted in just over a year.
One of the main reasons Social Security and Medicare are starting to see problems is the amount of people who benefit from these programs is steadily increasing, with baby-boomers beginning to retire, and having less available working people to pay into the program.
So, experts say unless these programs are changed from their current form to something more sustainable, these benefits are going to be a lot different in just a few years.
The program in the most danger is Disability Insurance, which is a part of Social Security.
The report suggests the disability trust fund will be completely depleted by 2016, while all of it being depleted by 2033, which has many of you in the area worried for their futures.
Cara Neel of Bridgport is worried about it “for retirement purposes and for my kids.”
Rebecca McLeod of Clarksburg believes “we might not have enough for when the next generation gets ready for their retirement.”
However, even though these trust funds will depleted, Social Security benefits will not stop altogether.
Experts say there are a few different ways to save these programs, whether to raise the taxes we pay to these programs in each paycheck, or reduce the benefits the programs pay for.
“It's a math problem, and you can't increase the number of beneficiaries without increasing the tax on people who are currently working, or cutting benefits, or increasing the cost to the beneficiaries in some manner,” said Hans Wikle, District Manager at Transamerica Network.
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