Social Security and Medicare
Some changes that are expected within the next 20 years based on the Medicare and the Social security include;
These two benefits will have insufficient trust funds to maintain their payment of the full benefits. This will create a change in the cost of living. These programs are there to help the elderly in their retreat and medical funds where they provide increased accustomed income. This change will create a big issue in that the elderly always spend their money on different services than the other individuals. For instance they have been spending money on health services which is an issue that have experience higher than the average rates of increase over the past few years. This shows that the elderly due to their spending manners will experience different price increase than what they are used to (Matthews, 2016).
There will be also a change in the increased tax of Social Security rate. When there will be the increased amounts for the taxation of social security benefits which will be increased to the retirees. In order to eradicate some of these benefits increase and to assist to fix the funding issue on the Social Security, it was proposed that there will be an increase in the Social Security tax rate (Matthews, 2016).
The main policy that the American Government will implement in order to make sure that there is positive changes for the Social security and Medicare benefits would be increasing the individual’s retirement age which would create American’s longer life span which would be a fair and a beneficial approach to improving the financial programs. Thus the earliest age of claiming the benefits would be at the age of 62 meaning that at that age for claiming would be increased along with the whole retirement age (Baker, 2001).
Reference
Baker, D. (2001). Social security: The phony crisis. Chicago: Univ of Chicago Press.
Matthews, J. L. (2016). Social Security, Medicare & government pensions: Get the most out of your retirement & medical benefits.
