Time to start saving for retirement… NOW!
Medicare and Social Security are both grounded by trust funds, and according to a new report by the programs’ trustees, the funds will run out earlier than initially expected.
Social Security is expected to have sufficient funds to pay 100% of promised benefits through 2036. Medicare is expected to be in trouble after the year 2024.
The bad economy is to blame for the short expiration date, but there are larger problems at hand that need to be worked out to get these programs back on track.
Said Treasury Secretary Tim Geithner:
"We should not wait for the trust funds to be exhausted to make the reforms necessary to protect our current and future retirees. Larger, more difficult adjustments will be necessary if we delay reform. And making reforms soon that are phased in over time would help reduce uncertainty about future retirement benefits."
If you’re young right now, it’s probably best to assume that you will NOT get social security when you retire!
[Image via AP Images.]