Will Social Security Be There When You Retire?
As I get older and I look at my financial situation, one of the spokes in my money wheel includes some type of social security payment. I say some type since I don't know if I'll be able to receive payment when I hit 62 years old or if I'm going to wait awhile and make plans for future disbursements.
As I get closer to those days I see and hear news about the status of Social Security. I also wonder about Medicare too, as it will be a key component in my health care during my retirement years.
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 depleted 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.
Plan now for a secure future!