Social Security became the most important topic in the United States. There are reports that they have insufficient funds to pay retirees for much longer.
Shortage Of Funds For Both Medicare & Retirement Benefits
According to Social Security Trustees Board, they don’t have enough funds and they can only cover about 77% of retiree benefits by the year 2033. It is a huge problem for many retirees because they only rely on Social Security to cover a large portion of their retirement income.
According to the published report by Jacob Wade, Social Security is having a shortage of funds because of this shortage both the retirement and survivor benefits are expected to be lessened to only 77% of the expected income by the year 2033. The Medical hospital care benefits are to be lessened to only 89% by the year 2031. The Medicare benefits are to be lessened to only 81% by the year 2047. Also, Retirement benefits are expected to be lessened to only 71% payout by the year 2097.
Social Security reserves both Medicare and Social Security inside their individual trust funds but the problem is the income for every trust fund is exceeded by the annual expenses. The retirement benefits fund is spending $40 billion while the Medicare fund is spending almost $80 billion more than it brings in annually. Right now over 55 million people received monthly payment checks from Social Security payments while 65 million people are currently enrolled in Medicare.
How The United States Finds $20 Trillion?
According to the former stockbroker and retirement expert at DSS Financial, Ilene Slatko said the best solution to do right now is to eliminate the wage cap on Social Security taxes because we need to support the Social Security trust fund. She’s in favor of tax incentives also for those people who pay more in Social Security and those who do not apply for the benefits.
According to the founder of IRA Investing, the establishment of a National Retirement Fund (NRF) could be a good idea because it would be a voluntary government-backed investment fund that people could contribute throughout their working lives. The funds will be invested to earn more profits and managed by a financial professional aiming for long-term growth.