There are many complaints about Social Security increases being wiped out by Medicare increases. My Medicare payments have increased about 50 percent since I turned 65 over 10 years ago.
For 49 years, about 15 percent of every dollar I made was sent to Washington for Social Security/Medicare. Instead of keeping it in a separate account drawing interest to pay to you when you retire (if you live past 65; if not, thanks for the donation), they have borrowed from the fund and spent it. Today the Social Security paid out virtually comes from money paid in by today’s workers.
Just a few years down the road, that money coming in won’t pay the Social Security/Medicare going out. Something must be done. Some responsible politicians have tried, but it is political suicide. Part of the solution has to be further increasing the age to draw Social Security (people are living longer than they did 70 years ago) and increasing the top wages subject to Social Security taxes.
Also a more unpalatable action is reducing any cost-of-living increase for those a certain percentage above the poverty level. That is not something I am happy with, but we either save the program or we don’t. Routing out disability cheaters will help a little, too. To be clear, I am not talking about the truly disabled, only the obvious cheaters.
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Time is running out to fix the problem, and no action will be a disaster.