I have plenty of family members and friends that are getting ready for or close to or even thinking about retirement at this time. I ask myself are they ready for retirement? Some of them have secondary retirement plans besides Social Security and Medicare and some of them dont. Today issue is for those that dont.
Social Security and Medicare are scheduled to run short of funds sooner then expected.
These are two of the biggest government entitlement programs we have. That means that you pay into these programs, as a tax paying citizen, and you are entitled to their benefits when you retire.
Together the cost of these programs represents 8.4% of the size of the nations economy last year. By 2035 it will jump up to 11.8%
The reason is the number of beneficiaries will explode as many "baby boomers" retire and the lower birth rates will slow growth in the number of workers paying in the system.
Social Security will be exhausted by 2036. It will have sufficient funds to pay out 100% of promised benefits through 2036. One year earlier then expected. That is because the economic recovery has been very slow and seniors are living alot longer. After 2036 the program will only be able to pay 77% of the promised benefits.
Last year was the first year that the program took in less payroll tax revenue the benefits paid out. The difference was made up from a trust fund. That trust fund reflects 2.6 trillion dollars of surplus revenue paid into the program since 1983.
Now get this. That surplus was "SPENT" by the government in exchange for non marketable U.S. bonds. Now that the program needs to cash those bonds in, there isnt any money available. So what does the government do? Well they have a few options. They can borrow more money add to our deficit, they can raise taxes which hurts the same people they are trying to help, or the can cut spending somewhere.
This doesnt even take into account Social Security disability benefits, which are paid to people that cannot work due to a medical condition.
Now to make sure that Social Security can pay all scheduled benefits for the next 75 years the trust fund will need and additional 6.5 trillion dollars right now. Hmm not gonna happen.
Now for Medicare. Medicare part A (hospital insurance) should be able to pay full benefits through 2024. Five years earlier then projected. Some say in order to fix this problem the 1.45% Medicare payroll tax needs to increase by 1% right now. Medicare part B (doctor's bills) and D (drug coverage) are funded solely by general tax revenue and patient premiums. Cost of these are set to increase rapidly very soon.
Boy that sure does put a damper on looking forward to retiring. How do they expect someone to survive at those costs and reduced entitled benefits.
What if you worked for a company for all of your working career, paid into S.S. and Medicare, that did not offer any kind of supplemental retirement program. You worked hard paid taxes like you were suppose and believed that when you retired will be entitled to the benefits you paid for. Wrong.
What if someone up in age depends on S.S. and Medicare becomes extremely ill has to be put on many expensive drugs and hospitalized for a long period of time. Then all of a sudden he/she has run out of S.S. and Medicare benefits. What do they do them? They send him/her home for the family to take of right. Cant pay cant stay is what they say. The family may not be able to afford all the medical attention he/she needs, so what happens then? Well we know what happens. Sounds like the governments way of weeding out the weak and sick, so they can save some cash.
I tell you what, I used to dream about retirement. Now it scares the sh*t out of me.
Now do I have the answer to fix the problems right now. No, but I am trying because it affects me and my family and friends.
Do you think that the Congressmen and Senators are really trying to fix this problem too? I dont think they are trying as hard as they say they are. It doesnt affect them quite as much as you and me. You see they get full benefits from the government for life. Will they try and fix the problems? Yes but only when it affects or benefits them. Until then they will just keep retiring to their big ranch houses and island homes, living our retirement dreams..
Tell me what you think... has this or is this going to affect you soon? What do you think we should do about it?...Let me hear what the people really think and feel. L2
6 comments:
Scary!Hard to beleive some of thing's that we have got ourself's into as a country.We buy oil we need at crazy price's from other country's but sell grain to them at dirt cheap prices.?????
@ACE KILLJOY it is very scary what this country gets itself into..Alot conflicts that we deal with as a country are self induced..Taliban yep we supplied them with weapons. Same thing with Iran. We give countries like Pakistan billions of dollars in aid yet they hardor terrrorists...so yes it is scary and some point our government HAS to say "ok enough lets take care of our own"..I hope L2
It really is scary it is like the saying the rich get richer and the poor get poorer. It is a shame we have worked all our life and look forward to retiring but that want happen. I have to work to catch up just like it takes Dad and Mom to work now it takes SS and a job to make ends meet. I was not lucky enough to have been born with a silver spoon so i just keep on trudging. the dream of traveling or taking care of grandchildren is a just a dream. Thankfull i get to see my grandchildren on a daily basis for the moment. I just hope and pray that the economy gets better to help with the furture
@Anonymous thank you for the comment if you haven't already please sign up to follow us and subscribe via email...it is a shame that most American like your self will have to retire to collect S.S. but to still work just to pay for the essentials of life like insurance and taxes...I am glad to hear that you get to see your grandchildren daily for they are our future..I do believe that our economy will turn around and improve..I too was not born with a silver spoon and have had to work at least 2 jobs so that I may provide for my family..but if we keep voicing our opinions and creating change we will make a difference...keep reading our topics and keep leaving your opinion here and together we will improve our economic situation for our children and grandchildren....L2
I think that is true we do have to voice our self's and opiions.Changing the world starts at a local level.The steps we take today lead us to where we end up tomorrow.@ anonymous we all may end up in small compond's if you will.What I mean is that my mother may have to come and live with me some day as well as other family members.I mean the last recession we had people band together stood in line's for food,water took lunch to work and shared with each other.This so called recession people stand in lines but for a new $300 phone that is out or a new $65 dollor game and of course all the free money.My hope is that a real resolution is in site the way the goverment handles them self we will never get anything done.@L2 as you said this is a good start true conversation from actual people that feel the crunch.I have a retirement plan but live check to check dam near and retirement plays the market so no real security there.We are all truely on our own and will have to help our nabor.DO YOU KNOW YOUR NABOR?
@ACE KILLJOY thank you for being a avid follower and contributor to this site.. it is people like you and the other followers of this site that will make a difference in this world. As to your compound statement I can actually remember when families, mothers fathers children grandparents, lived under one roof. This is concept actually worked. It wasnt unitl relatively recently that the idea of sending your children out on their own when they turned 18 was introduced. This ideal way of thinking actual comtributes to our overall problem. These young adults (most not all) are not ready for the burdens that the world will put on them right away. From finicial to romantic they just do not have the experience to deal with everyhthing at the pace the world moves. They become part of the problem instead of being our solution. I actually like the compound idea. As to our priorities as to what we what in line for now a days i agree that is crazy. I have seen people with no running water or electricity at homes with children but you know what they have cell phones and rims...horrible PLEASE ACE KILLJOY SPREAD THE WORD ABOUT THIS SITE so that we make a difference one opinion at a time...May I ask in what country or state you reside?
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