Do You Feel That Social Security Will Be There When You Retire?
Feeling optimistic about the future of Social Security and Medicare to support you in retirement? You might want to change your tune you after this.
According to a story on pennyhoarder.com, trustees with Social Security predict that by 2034 Social Security’s reserves will be totally depleted, and about 77% of benefits will be covered.
If you're wondering about Medicare, in the Medicare Trustees report released June 5, by 2026 Medicare will deplete all of it's reserves. Unfortunately, that's three years earlier than last year’s prediction.
Now this doesn't mean that by the year 2026, Medicare will go broke. Once the reserves are depleted, Medicare will have to survive on it's income. Which means it's only predicted to cover 91% of annual costs.
Maybe it's time to start focusing on paying off debt and maximizing on your 401k plan. If IRAs are your investment vehicle, contributing the maximum amount could help to offset some financial pain in the future.