In the latest episode of the Decoding Retirement podcast, host Robert Powell interviews certified retirement management advisor Marcia Mantell about the key findings from the recently published Social Security Trustees Report and what it means for the future of Social Security and Medicare.
Why it matters: The Social Security Old Age and Survivors Fund will become depleted at the beginning of 2033, six months sooner than what was projected last year.
- A bigger surprise, said Mantell, is that Medicare Part A, the Hospitalization Insurance Trust Fund, will become insolvent three years sooner, also in 2033, due to rising healthcare costs — which could lead to reduced hospital benefits.
By the numbers: If nothing is done to fix Social Security, an individual who claims benefits at age 70 and receives $52,000 annually could see a $12,000 reduction in income, said Mantell, while a couple who claims at age 70 and receives $89,000 a year could see their income reduced by $20,000.
Go deeper: One of the key issues impacting the future of Social Security is that American couples are not producing sufficient numbers of future workers to keep the payroll taxes rolling in at the same rates as today.
Actuaries at the Social Security Administration believe women are waiting 10 or more years to have children, said Mantell, which is negatively impacting the ratio of workers to retirees.
