Entitled to Social Security and Medicare? Think Again.
Released last week, was the annual report from Social Security and Medicare showing how long these programs will be able to provide benefits as promised. The report stated these entitlement programs, which many retirees rely upon, are in jeopardy. So where do we stand today, and what can we expect moving forward. Currently, there are roughly 61.5 million people who receive retirement or disability benefits from Social Security. According to the report, this is the first-year costs/outlays will exceed income/deposits since the 80’s (chart per the WSJ). Due to higher costs, the program will have to tap into its 3 trillion-dollar trust fund. Although $3 trillion may seem like a lot of money, these reserves are forecasted to only last until 2034. This is much sooner than previously expected. As a result, Social Security would be forced to cut recipients benefits to 75% of their scheduled amount. For Medicare, it is even worse. Today, 58.4 million people receive Medicare. T...