Surprise! Medicare Is in Worse Shape Than Social Security
For millions of Americans, Social Security is arguably the most important social program. Data from the Social Security Administration shows that 61% of all retired workers count on their monthly Social Security check to account for at least half of their income. Without this income, millions of additional seniors would likely be living in poverty.
Unfortunately, the foundation of this critical program is crumbling under the weight of demographic changes. These changes include the ongoing retirement of baby boomers at an average rate of more than 10,000 boomers per day, a steady lengthening of life expectancies, and pervasive income inequality that's allowed the rich to live longer and pull in a larger Social Security paycheck than lower-income folks. By 2034, the Social Security Board of Trustees projects that an across-the-board cut in benefits of up to 23% may be needed to keep the program solvent through 2091. This forecast has a lot of seniors and soon-to-be retirees calling for Congress to do something now rather than later.
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Source: Fool.com
