America’s retirement apocalypse: The $17,000-a-year hole in YOUR budget when Social Security and Medicare implode

A survey shows that Americans are increasingly concerned that Medicare and Social Security will collapse by the time they retire.

About three-quarters of adults are “concerned” or “extremely concerned” about losing state-funded health care for their golden years, pollster Gallup says.

Four-fifths of them are afraid that social security will implode, the survey shows.

The number of people who are alarmed has soared in the past two years – and those approaching retirement age are the most concerned of all.

The research comes as America’s safety net is disintegrating, with an aging population and not enough taxpaying workers to support the system.

Those closest to retirement are most concerned about depleting financial resources, polls show.

About three-quarters of adults worry about losing state-funded health care during their golden years, Gallup says.

Recent data shows that the funds underpinning Social Security and Medicaid could dry up in just over a decade.

The fear of a cash-strapped retirement was highlighted this week by a 90-year-old U.S. Air Force veteran who pushes shopping carts at a supermarket in sweltering Louisiana to make ends meet.

Dillon McCormick’s Social Security benefits of $1,100 aren’t enough to retire, he says.

Thousands of people donated about a quarter of a million dollars to an online fundraiser to help McCormick leave his demanding job at the Winn-Dixie supermarket in the New Orleans suburb of Metairie.

“Americans don’t assume that Medicare and Social Security will always be there for them,” Gallup says.

The pollster says “older voters, who tend to vote at high rates,” are the most annoyed, and will vote accordingly in the November election.

“Such sentiment could serve as a wake-up call to action” for lawmakers, they said in a report.

Social Security relies on its trust funds to provide monthly benefit checks to about 70 million Americans.

The fear of a cash-strapped retirement was highlighted this week by the case of a 90-year-old U.S. Air Force veteran pushing shopping carts at a supermarket in sweltering Louisiana to make ends meet.

Thousands of people donated about a quarter of a million dollars to an online fundraiser to help Dillon McCormick retire from his demanding job at the Winn-Dixie supermarket in the New Orleans suburb of Metairie.

But an aging population is driving up the cost of the program because a smaller share of people are paying into it, and expenses are exceeding revenues.

About 4.1 million Americans will experience what has been called the “silver tsunami.” Turning 65 in 2024, and every year through 2027This is evident from a report by the Alliance for Lifetime Income.

An annual report from the Social Security Board of Trustees last month showed that Social Security would only be able to pay out full benefits for the next 11 years.

Social Security is primarily funded through payroll taxes deducted from paychecks – which are then used to pay retirement and disability benefits.

The fear of retiring could influence how people vote in November

Social Security Commissioner Martin O’Malley urged Congress to take steps to “extend the financial health of the trust fund for the foreseeable future.”

If the trust funds the Social Security Administration relies on are depleted, that doesn’t mean the payments will happen suddenly to disappear.

Instead, the Trustees say beneficiaries would face cuts to their monthly checks, causing them to lose 17 percent of their current benefits.

This could be significant for millions of disabled Americans, and for those who rely on Social Security as their sole income in retirement.

According to the Peter G. Peterson Foundation, a nonpartisan research group, an automatic 21 percent cut will hit all beneficiaries in just nine years.

That amounts to almost $17,000 a year for the average couple, according to a new report.

Michael Peterson, the group’s CEO, warned that Social Security is “on a fast track to insolvency.”

“Voters want leaders to prioritize solutions to avoid devastating cuts to this vital program,” he added.

Meanwhile, the reserves of Medicare, which provides health insurance for people 65 and older, will be depleted by 2036, researchers said.

This is partly due to higher payroll tax revenues and lower-than-expected spending for 2023, according to the report.

Social Security relies on its trust funds to provide monthly benefit checks to about 70 million Americans

The uncertain path of Social Security and Medicare is a concern for many, especially those approaching retirement age.

More than 73 percent of all adults fear Medicare will disappear in the coming years, and 80 percent feel the same about Social Security, the Gallup poll found.

Voters are 57 percent more likely to support a political candidate who prioritizes the budgets of older Americans in elections, the survey found.

The national survey among 5,149 adults was conducted between November 2023 and January 2024.

The financial prospects of the social security system have long been a point of political contention.

Republicans have proposed raising the retirement age, while Democrats have done so offered an increase in the payroll tax limit as a possible solution.

Some experts warn that politicians are running from the problem rather than trying to solve it – and it is crucial that they act now.

Earlier this year, billionaire CEO Larry Fink said Americans should working after the age of 65 to prevent the social security system from collapsing.

“No one should have to work longer than they want to,” Fink wrote in his 2024 letter to shareholders.

‘But I find it a bit strange that our anchor idea for the correct retirement age – 65 – dates from the time of the Ottoman Empire.’

Social Security Commissioner Martin O’Malley urged lawmakers to act now to keep the eroded trusts afloat.