The Future Of SS & Medicare Up in the air... Maybe?

[ShokWaveRider]

I am reading some disturbing things about SS and Medicare, Our whole future is based on those 2 benefits being there for us in their current form. We paid into them and I am reading that there is talk about cutting benefits.

The Huffington Post and other Agencies have the details.

I am 2 years off and DW is 7 years off. I must admit I am concerned, is anyone else?

 

[street]

I am concerned but I also believe both will be in place to some degree. I may be naïve but I still have a lot of faith in the people in office. I know what you are thinking but it will be there.

 

[Katsmeow]

Yes, I am very concerned. I have discussed the Medicare proposal (from Ryan's Better Way and Price's proposal) in other threads. I also read a good part of the SS proposal along with some analyses of it. After reading them I basically went and figured out a future budget that cut SS substantially and increased Medicare (or a replacement for it) substantially. I was comforted to see that we could still survive but it would mean significant cuts in discretionary spending a move to an even more downsized house than we now plan.

FWIW, I think in the near term the Medicare proposals are far more likely to pass than the SS proposal in the near term. But, I do think it prudent to think about the potential for both of them (or similar proposals) passing and thing about how it affects plans. In our case, DH is already on SS/Medicare. I'm not on Medicare yet, but have applied to start SS next year. So, we can't just work longer to get more money. We would have to deal with this kind of thing by cutting spending.

 

[stepford]

I'm certainly concerned, but at some level I welcome this. Perhaps it's time people get exactly what they voted for.

 

[Hermit]

Like the Supreme Court said about ACA: It is a tax. The FICA is also a tax. The money taxed has been spent. The money you get for SS and Medicare are by the good graces of the government and whatever persuasion your vote has.

On the brighter side, I don't see the government changing things radically, although those that can afford to, may have to pay a larger share.

- Just my humble opinion...

 

[Texas Proud]

I also am one who is concerned a bit.... but I do not dwell on it since there is little I can do except write congress critters.... I am in a VERY RED district, so not much will change his mind...

But, IMO, it would take a filibuster proof majority to get anything that is really radical passed.... so I think it will only be changes to the edges...

I am not trying to be political here, just stating facts as I see them...

 

[ABQ2015]

There has been a lot of heated discussion on medicare privatization and the social security reform plan on other forums. While I am concerned and not necessarily pleased with either proposal, I can appreciate those who are trying to tackle these tough topics. And I would almost welcome some resolution so that I could start to better plan and not be in this constant uncertainty. As a single retiree with no sheltered income (e.g., only pension and tax deferred investments) and high AGI, the proposals would definitely impact my retirement income but I have worked a couple of extra years to pad my numbers and could cut if necessary.

 

[youbet]

I like SS and Medicare. But, I do not want to extend current benefits on the backs of today's kids. If we paid in enough to support what we get today, great. If today's young people would have to bear the burden of paying for benefits for us that they'll never receive themselves, I'm all for substantial cuts.

When we FIRE'd, we knew there would be risks, such as today's youngsters paying through the nose for us to have generous benefits they'll never receive. I'm ready and able to cut back so that the kids can worry about themselves.

Geezers need to pull up their big boy pants and pay their own way.

 

[Katsmeow]

Without getting into political specifics, I will simply say that there are ways to improve the solvency of these programs that don't result in draconian cuts to them. The choice here is not between do nothing and cut benefits up to 50%. There are other changes that can be made.

One of the alarming things about the current proposal on SS is that a number of the changes would apply to current beneficiaries. These are people who are already dependent on SS and can't necessarily go back to work to bridge the gap. Even my DH (now 69) couldn't easily do that and my mother (92) certainly couldn't do it.

 

[REWahoo]

There has been a lot of heated discussion on medicare privatization and the social security reform plan on other forums.

I am so thankful this forum doesn't permit those discussions here. This place is an island of relative sanity thanks to the moderators, who I hope will continue to keep this place free of speculation, heated rhetoric and semi-panic - at least until Congress actually begins deliberating changes. Not much going on yet other than positioning and grandstanding.

 

[razztazz]

. I must admit I am concerned, is anyone else?

Yes I am but at this point not overly so. I'd like to let it play out a bit. So many things are sure until they're not. Hillary was supposed to win. The Giants had the Eagles beat in the Meadowlands in 1978 until the last 6 seconds.

The perpetrators of these plans might end doing a "Let's not but say we did" kind of legislation. And as somebody else here said, let the People get a little of what they voted for. You can only play that faction vs faction game so far. In this case, Young vs Old. It might get bloody but let's see what happens when they actually push the button that's labeled "Never Push this Button."

Since I am not standard ilk at this forum my SS is way at the low end of the scale so per my readings I would escape more or less unscathed. In projections I have always used 60% of what the SS admin say's I'll get. That's subtracting out what I'd pay for Medicare anyway and some getting it stuck to me from the politicians.

The Medicare thing will likely get uglier because People actually need the medical care. You can make upper income types pay back more SS in taxes or just short them on the front end but as even the quite well-off people here know medical care ain't cheap. Current Plans are not biased towards helping people they are biased towards saving money, so one big bite will eradicate a lifetime of doing the right things right all for want of a few dollars. And how much will doctors and hospitals et al be be shorted with fewer health care dollars?

If they implemented all their plans there's a fair chance everything old would be new again in one or two election cycles.

 

[RenoJay]

The proposals I've seen essentially don't change much for those in or near retirement. But the reality is that politicians are not tinkering with these programs just to mess with their constituents; they're doing it because these programs are woefully underfunded due mostly to demographics. (Many more retirees to workers than 30 years ago and retirees are living substantially longer, thereby using a lot more resources than in the olden days.) I am concerned, but not for myself or my contemporaries. At the rate we're going, our children and grandchildren will bear a much higher burden either in taxes, reduced benefits or both unless these programs are modified.

 

[rodi]

The bill in question is only a proposal, and like most others, may never see the light of day. If it should be considered as a legitimate legislative proposal, its effect on early retirement and forum members can be discussed. In the meantime, it is only political speculation, which is not a legitimate topic per our community rules.

For this reason the thread is being closed.