It’s no secret that the shaky economy is having an adverse effect on both Social Security and Medicare the health insurance system for senior citizens, literally draining both programs’ funding sources much more quickly than had ever been anticipated. In addition, tax receipts that are less than expected and an ever increasing number of baby boomers hitting their retirement years are combining to give both systems a one-two punch that isn’t helping.
But how bad is it, really?
As of yesterday, the projection for when the Medicare hospital insurance fund for senior citizens runs out of money is in 2024 – five years earlier than last year’s estimate of 2029. Social Security funds are also projected to run out earlier than last year’s estimate as well – in 2036, rather than 2037. After that point, the government reiterated yesterday in a new report, payroll taxes only provide enough funding to pay partial benefits.