The Social Security and Medicare retirement programs are burning through cash like never before, says a government report released today, and will go broke sooner than expected.
Every year the Trustees of the Social Security and Medicare trust funds report on the current and projected financial status of the two programs, and the actuarial deficits for both programs worsened in 2012.
Social Security expenditures exceeded non-interest income in 2010 and 2011, and the trustees estimate that expenditures will remain greater than non-interest income for at least the next 75 years!
Social Security – Put a dollar in get 75 cents out
This results in the complete exhaustion of funds by 2033. Thereafter, the income will only be sufficient to pay-out approximately 75% of the scheduled benefits for the next 53 years, or through 2086.
Hope you don’t get sick after 2024
The trustees project that Medicare will pay out more in hospital benefits and other expenditures than it receives in income in all future years, as it has since 2008. The medicare well will run dry in 2024.
Social Security and Medicare are the two largest federal programs, accounting for 36% of federal expenditures in fiscal year 2011. Both programs are out of control and are in dire need of drastic changes.
Heed the actuarial warning on the Social Security and Medicare programs and make adjustments to your retirement planning as needed.You can help MoneyPig by sharing his posts with your friends. This is a young blog that runs on word of mouth from readers like you. So take a second out of your day and help spread the word! Thanks. :FatMoneyPig