The Trustees for Social Security and Medicare issued their annual report today and it does not make for nice reading.
Social Security is now forecast to begin paying out more than it receives in 2016 and be insolvent in 2037. Previously it was expected to be revenue negative in 2017 and insolvent in 2041. Medicare is worse. It will be revenue negative this year and insolvent in 2017.
I don’t know what assumptions underlie the forecasts but I rather suspect that they are rosy. If anything, we can probably expect these dates to continue to move in, perhaps drastically if the economy remains in bad shape.
Do you think the politicians have the nerve to deal with this yet or is it going to take a crisis to make them deal with the issues?