"What happens when the first of these two giant funds run out of money? According to the 'trustees', there will be a cut in benefits to the reciprocates."
Let's pretend for a minute that you are 60 years old (some reading this really are). You are working at some company, trying to hold on by your fingernails. Even though wage discrimination is suppose to be illegal, you have seen many "grey hairs" walked out the door. If you can just make it to 65, you will be somewhat safe, as you can collect Social Security and Medicare. So you think.
Social Security and Medicare are the twin 600 gorillas in the corner of the room that neither candidate will talk about. Why? The solutions needed to fix these two behemoths are a buzz kill for voters. The hay day for both of these funds rests firmly in the rear view mirror. They are now living on borrowed time. Translation - the "trust funds" are going broke. Not just in decades down the road, but in just a few years.
What happens when the first of these two giant funds run out of money? According to the "trustees", there will be a cut in benefits to the reciprocates. The current projection for the fund to run out of money keeps getting closer all the time. Just seems like yesterday when the projection was 2026. Now it is 2024. That is a scant 7 years away. And if that projection holds fast, and nothing is done to fix the fund, every person collecting Medicare will receive 13% fewer benefits after 2024.
Social Security is slightly better. The fund is still expected to last until 2033 (that be 16 or 17 years from now). If the fund goes unfixed, those collecting Social Security will only get 75% of what had been promised to them. Let that sink in for just a minute. You are a senior, depending on Social Security. Your 401 k took a huge hit from the market collapse of 2018. You get sick with a disabling disease. Your hospital bills are eating you up, as Medicare does not cover the entire cost - nor will your Part "B". And you have very few dollars to use to pay for your medical bills as your Social Security has been cut by a fourth.
One would think that with 10,000 baby boomers going on Social Security or Medicare each and every day, this discussion would have been important during the debates. It was not. Again it is so icky, to hear about the gloom and doom in the near future is a buzz kill for voters. So what is the solution?
Social Security needs to be phased out. Period. It is a Ponzi Scheme only mean to work if the number of workers contributing to the fund far out numbered the folks receiving benefits. To put it simply, it always has been a math thing. These days, the math is not working out. Has not been for years. And the government will NOT TELL THE PEOPLE THE TRUTH concerning these two funds.
By the way, the part of Medicare which takes care of people on disability has already reached the red zone. Out of money. And we are not hearing a peep about that in the press. Each day that passes, all the funds grow weaker.
Yet, nothing is discussed. It will not be discussed until we are all heading over the cliff together. Hello, Thelma and Louise...
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