Should you be worried about Social Security and Medicare?
Here are some questions and answers on an issue that ultimately will affect every American family and isn't going away:
WHAT'S NEW?
The government's annual Trustees Reports on the programs shows the financial condition of both worsening significantly since last year. The projected insolvency for
A more immediate warning signal caught the eye of experts.
Both programs will start tapping their reserves this year, meaning that income from payroll taxes and interest earned by the
"The near-term outlook in both programs got substantially worse," said Republican economist
As a result,
SHOULD WE BE WORRIED?
"Yes," said
"What people have to worry about is that in a democracy we govern either by leadership or by crisis," Panetta added. "What you are looking at right now is a situation where crisis is going to be driving decisions. Rather than fixing it today, which is what we should be doing, we're simply going to postpone the day."
Panetta is co-chair of the Committee for a Responsible Federal Budget, a nonpartisan watchdog group.
WHAT'S WRONG WITH WAITING?
"A lot of people in
But waiting in the context of
Younger people, less likely to be following the debate, have the most to lose.
"Really the system is fine for older people; it's not fine for younger people," said
"People under 50 are paying into a system that can't afford to pay them the benefit it's promising them, and I don't think they realize it. The more we delay reforms, the more sudden and draconian they would be, especially for younger people."
WHAT ARE SOME POLICY OPTIONS?
They boil down to tax increases and benefit cuts, with an effort to spare current retirees of modest means.
Options for
Options for Medicare include raising the eligibility age —now 65— to match
Some groups are drawing a line against benefit cuts.
"Core Medicare coverages which exist under current law should not be diminished for current or future beneficiaries," said
WHERE DO TRUMP AND LAWMAKERS STAND?
Trump promised not to cut
But nonpartisan government experts who produced the annual
Problem-solving is becoming a lost skill in
"There used to be a playbook where the
"Maybe such a strategy is being hatched behind closed doors at the
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