How to Keep Social Security and Medicare Solvent
Opinion Advocates for ideas and draws conclusions based on the author/producer’s interpretation of facts and data.
A recent Social Security Income (SSI) report predicts that the trust fund used to pay full benefits will be broke by 2034. Medicare will be in the same predicament by 2031.
After those dates are reached, benefits under both SSI and Medicare recipients may have to be cut. The report suggests immediately increasing the combined payroll tax withholdings for both employees and employers by 3.4 percent, from the current 12.4 percent to 15.84 percent. This would be a disaster for both employees and employers given the current rate of inflation.
Here is a better alternative to keep SSI and Medicare solvent for decades more: Raise retirement age-eligibility by one month each year starting in 2024 over 12 years. In 2036, you would have to be 63 years old to start collecting, 67 1/2 for full benefits or 73 for maximum benefits.
The current payroll withholding tax is 6.2 percent each for employees and employers for a total of 12.4 percent. Starting in 2024, raise each by .05 percent. Within 10 years, total payroll withholdings will be 13.4 percent. Both actions should preserve financial solvency for SSI and Medicare. As a majority of Americans continue to live longer, this is the best deal for all.
Larry Penner
Great Neck, N.Y.
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