On June 3, 2022 the Social Security and Medicare Boards of Trustees issued their annual reports.
In 2028 Medicare’s reserve funds will be depleted. If Congress does not act, benefits must be cut by 10% to remain solvent. If benefits are not reduced by 10% then the Medicare tax all employees pay must be increased.
Social Security will run out of money to pay full benefits in 2034, twelve short years away.
Over the years politicians have borrowed $3 trillion dollars from Social Security, robbing Peter to pay Paul. Today, millions of individuals in their prime earning years are paying into a system that will be insolvent in a few short years.
In the short term, Congress should shore up these programs so that the millions of individuals that have paid into these programs receive what was promised to them.
In the long term, Congress should allow anyone who would like to opt-out of these insolvent government programs, instead enrolling in a privatized Social Security plan.