13 May 2009

Do Not Panic Over Social Security & Medicare News

From today's headline's:

Social Security and Medicare are fading even faster under the weight of the recession, heading for insolvency years sooner than previously expected, the government warned Tuesday.

Social Security will start paying out more in benefits than it collects in taxes in 2016, a year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner, trustees reported.

The Alliance for Retired Americans responds:

The following statement was issued by Edward F. Coyle, the Executive Director of the Alliance for Retired Americans, in response to Trustee Reports issued today for the Social Security and Medicare Trust Funds.

“The impact of the recession on the Social Security and Medicare Trust Funds underscores the critical need to support President Obama’s plans to reform health care and create a lasting economic recovery. Putting more Americans back to work will send more money into these Trust Funds, and a universal, more efficient health care system will alleviate the severe strain that our health care crisis imposes on both families and employers. Our nation’s inter-related economic and health care problems are what should demand our lawmakers’ immediate attention.

“Current and future retirees should be suspicious of ‘sky is falling’ predictions of doom for Social Security and Medicare. These warnings mask an ongoing ideological agenda to cut benefits to current and future retirees. Instead, we should focus on strengthening Social Security by raising the cap on earnings, and ending the nearly 20 percent overpayment that taxpayers give to the big insurance companies to offer privatized Medicare Advantage programs.

“Today’s reports are a reminder that we must focus our energies on the lasting benefits of improving our economy and reforming our nation’s health care system. This is neither the time nor place for ideology or heated rhetoric. Instead, our nation’s retirees are looking to Washington to take specific steps to improve retirement security in America.”


Attract Prosperity said...

The lesson here is that it's up to you to make enough money to be very comfortable. If you let government of anybody else determine your financial future than you are at their mercy.

Some people feel that it's not fair that you've invested in these program and now you don't reap the returns. We've all made hundreds of bad investments in one way, shape or form but we ultimately move on from them.

If you have a job, don't get another job. Invest. Start a small business. Open up multiple streams of income and acquire your own wealth so that you don't have to rely on government.


Shane Fox said...

Ryan, you'e correct in that we each must take responsibility for seeing to our own retirement security. However, Medicare and Social Security are essential parts of the package and must be protected against privatization and emotion charged changes.

Also, while entrepreneurial types can do much to enhance their situtation, not everyone has the background, opportunity or make-up to do so.

So, part of the responsibility we share is that we look out for those who are unable to do as well as we have in very competitive economic system.