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  1. Medicare’s finances were downgraded in a new report from the programÂ’s trustees Tuesday, while the projection for Social SecurityÂ’s stayed the same as last year. MedicareÂ’s hospital insurance fund will be depleted in 2026, said the trustees who oversee the benefit program in an annual report. That is three years earlier than projected last year. This year, like last year, Social SecurityÂ’s trustees said the programÂ’s two trust funds would be depleted in 2034. For the first time since 1982, Social Security has to dip into the trust fund to pay for the program this year. It should be stressed that the reports donÂ’t indicate that benefits disappear in those years. After 2034, Social SecurityÂ’s trustees said tax income would be sufficient to pay about three-quarters of retireesÂ’ benefits. Congress could at any time choose to pay for the benefits through the general fund. Medicare beneficiaries also wouldnÂ’t face an immediate cut after the trust fund is depleted in 2026. The trustees said the share of benefits that can be paid from revenues will decline to 78% in 2039. That share rises again to 85% in 2092. The hospital fund is financed mainly through payroll taxes. Social Security trustees said that reserves for the fund that pays disability benefits would be exhausted in 2032. Combined with the fund that pays benefits to retirees, all Social Security reserves would be exhausted by 2034, they said. The trustees said MedicareÂ’s changed outlook is due to adverse changes in the programÂ’s income and costs. Hospital insurance fund income is projected to be lower than last yearÂ’s estimates thanks to “lower payroll taxes attributable to lowered wages in 2017 and lower levels of projected GDP,” the trustees said. And hospital insurance fund expenditures are expected to be higher than last yearÂ’s estimates, the trustees said. Treasury Secretary Steven Mnuchin said in a statement that “lackluster economic growth in previous years,” as well as an aging population, has contributed to shortages for both Social Security and Medicare. He said the Trump administrationÂ’s economic agenda, including tax cuts and trade deals, would generate growth and help to secure the programs. AARP said in a statement that the report showed “challenges ahead for the long term,” and singled out health care for action during the election year. “In particular, we need to take further steps to lower the cost of health care, especially the ever-rising price of prescription drugs,” the organization said.
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  2. Many are concerned that Social Security will soon run out, but there are some easy ways to fund the shortfall:
  3. 2016 Prepare for your disability interview.doc Don't Be Scared 2016.doc Retirement planning 2016.doc

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