On June 9, the Social Security Administration (SSA) issued an alarming warning to many who received benefits from them. They announced that this year marks the first time in nearly 36 years that they’ve had to dip into their reserve fund to be able to properly compensate those who were slated to receive benefits this year.
They warn that, unless lawmakers do something to help them, then the SSA may be forced to cut many recipient’s monthly benefits by as much as 23 percent by the year 2034.
This statement from the SSA comes at a time when Medicare has also recently issued a statement acknowledging it’s estimated that the hospital insurance fund will no longer have any funds by 2026. This forecasted date has been moved up three years from what lawmakers predicted it would be last year. Medicare administrators estimate that they’ll only be able to cover 91 percent of patients’ costs in eight years.
While the prospect of the federal government not being able to cover the the Social Security and Medicare programs may sound scary, there is one positive piece of information that made the news in recent weeks. The Social Security Disability Insurance (SSDI) program is now not projected to go bankrupt until 2032. This date has been moved back by four years past the forecast that was made just last year.
Legislators have attributed the improvements made to projected longevity of the SSDI program to a decrease in the amount of applications individuals have been filing to receive such benefits.
While the future of these programs seems dismal, some legislators are pressing to have stricter restrictions imposed in order for recipients to qualify to receive benefits. Others are simply looking to increase taxes in hopes of generating the much-needed cash to keep these programs afloat a little bit longer.
If you suffer from a debilitating or crippling condition that impacts your ability to work, learn about your prospects of securing benefits to cover your living expenses.
Source: MarketWatch, “New warnings about cuts to Social Security and Medicare are a reason to worry,” June 09, 2018