Thursday, July 20, 2017

Social Security And Medicare Are In Worse Shape Than You Think | Stock News & Stock Market Analysis - IBD

Social Security And Medicare Are In Worse Shape Than You Think | Stock News & Stock Market Analysis - IBD:
"Pensions: Even in normal years, the annual Social Security and Medicare trustees' reports typically get overlooked.
This year is far from normal.
Image result for social security and medicare fundingBut the reports should be top of mind for anyone who cares about retirement security.
The Social Security report finds that the "trust fund" will run out of money in just 17 years.
The news only gets worse from there.
...And on a cash flow basis, Social Security is now losing money every year.
Last year it was $54 billion in the red.
In a decade the annual shortfall will reach $215 billion — after adjusting for inflation.
It's only by spending "interest" earned in the program's "trust fund" that Social Security can cover its current obligations.
But remember, the trust fund is comprised entirely of Treasury debt.
The federal government still has to borrow or raise taxes when the trust fund cashes in those bonds.
...Medicare's future is equally grim..."

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