The government may not be able to keep its promise of providing
health care and pension benefits to retirees in coming decades.
The oldest of the 78 million baby boomers, those born between 1946-64,
will be qualifying for Social Security benefits in 2008 and Medicare
in 2011. Analysts predict severe financial problems await them.
If problems are already peaking for the oldest of the boomers,
what will funds be like for those born between 1960-64?
The primary factor concerning Social Security and Medicare is,
of course, the large population of people retiring and the depleting
source of funds available to cover this group. Also, factors such
as longer life expectancies, soaring medical costs, and slow growth
in the number of young workers to help finance the programs, pose
a problem.
According to a report, government obligations such as Social Security,
Medicare and federal debt have left taxpayers with a hidden debt
of at least $53 TRILLION. That is approximately $473,456 per household,
which overshadows the estimated $84,454 in personal debt. With statistics
like these, Congress and recent presidents have attempted to address
the problem of Social Security and Medicare by hiring a small industry
of experts, both inside and outside the government, to analyze what
it might take to form a solution.
The plaguing question -- "What can
be done?" -- has prompted some suggestions:
- Doubling taxation
- Cutting benefits in half
Presidential candidates and their respective
political parties have avoided speaking on the Social Security problem
in fear of angering voters. But both Republican and Democrat experts
generally agree that:
- The qualifying age for those receiving Social Security benefits,
and possibly Medicare, needs to be raised
- Benefits should be reduced for the affluent
- People need to stop treating Medicare as if it were free, meaning
they should pay higher Medicare co-payments and deductibles
Experts agree that the changes made may reshape the social contract
between the government and its citizens.
USA
Today October 6, 2004
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