A hit to Social Security and Medicare would be harmful to pensioners, experts said at a Brookings Institution event.
These programs are significant support systems for millions of older Americans. Martin said that saving for retirement can be challenging, particularly as employers shift away from pension plans and Americans are enticed by consumerism and other savings or spending demands.
Concerns About Social Security And Medicare
Former White House economists Neil Baily and Ben Harris, co-authors of The Retirement Challenge, spoke at the event.
There are many ways to increase retirement security, including annuities and other insurance products in plans and motivating businesses to do more for the financial futures of their employees.
Keeping Social Security solvent is another must, according to Bailey. We believe there is more work to be done.
People shouldn’t suddenly find themselves forced to decide between filling their prescriptions and going to the grocery store when they are 85 years old.
He went on to say that a reliable backstop must be put in place of Social Security and Medicare, and that requires addressing the financial situation.
By 2034, the two trust funds that sustain Social Security could be depleted, which would result in a cut in benefits for both current and future beneficiaries.
Read more: Social Security Rolls Out Direct Payments Worth Up To $4,555 To Millions
Raising Retirement Age And Expanding Payroll Tax
According to the trustees report, the trust fund for Medicare Part A, which covers hospital insurance, is anticipated to run out in 2031.
Despite numerous suggestions throughout the years, Congress has yet to decide what course of action to follow to address these challenges.
According to Harris, raising the Full Retirement Age to 70 and expanding the number of persons subject to the payroll tax are two measures that would ensure the programs’ financial stability for the following 75 year