The latest estimates on the solvency of Medicare, Social Security retirement and Social Security disability were released by the Social Security trustees and it is a little bit more concerning than expected.
Each year the Social Security trustees release estimated dates in which Medicare and Social Security will be unable to meet 100 percent of expectations due to depleted funds. Last year the trustees estimated the solvency of both the Social Security retirement and disability programs would last until 2034 and this year’s report confirms that, so there is no change related to Social Security, just Medicare. Due to Medicare’s changes in “assumptions and expectations,” the program’s hospital trust fund will now be depleted by 2028, which is two years earlier than last year’s projection of 2030. The trustees said that Medicare and Social Security would grow faster than the economy through the mid 2030s because of an aging Baby Boom Generation.
Each year we seem to hear about how Medicare and or Social Security may not be around for younger generations due to this impending shortfall. This sort of rhetoric has existed since at least the 1980s. Eventually congress and the president get together to temporarily fix the problem and new generations are faced with the dilemma. Considering that about 40 percent of the entire federal budget goes to Medicare and Social Security, a long-term fix is certainly needed, but make not mistake, Social Security and Medicare will be around for a long time.
There are solutions and considering everyone who has benefited from these two crucial programs will continue to need this help, it is not if our legislative leaders will find a way to extend the life of these programs, but when. Could you imagine how the American public would react if all of a sudden Medicare and Social Security benefits were cut? To learn more about a recent story that appeared in The New York Times, click here.
