GREENSBORO, N.C. — Two of our biggest federal programs are projected to run out of money soon.
In a report released Monday, Social Security and Medicare experts say it's only a matter of time before the money is gone. Federal leaders forecast Medicare to run out by 2026, and Social Security by 2035.
This report that comes out every year to let the public know the health of two of the biggest federal programs: Social Security and Medicare, which are both set up to help the elderly, or those with a disability.
But it's not much different from last year's update. Financial expert Matt Logan says he doubts either program will be gone for good.
"I do not think that the program is going to go away altogether," Logan said, "I've been paying in, you've been paying in, we've been paying into the system, and something will come back out of it. The system is just going to have to evolve to catch up with what we are as a country now versus what we were when it was created.
"Every year this report comes out, and they say, 'hey, Social Security is going to last this many years.' People have a panic attack about it. There are going to be changes along the way, Social Security may be in a very different form for myself when I retire. It may not start till 70, who knows, but it needs to change form but I do feel like Social Security will still be there."
The report urges lawmakers to take action sooner rather than later. Logan says making cuts or changes to the program - is politically unpopular, especially to those nearing retirement.
"It's a lot tougher of a conversation to tell a bunch of 60-year-olds, hey, we are going to have to make some changes to your Social Security right before they take it," he explained.
If Congress doesn't act, The report says both programs would eventually be unable to cover the full cost of promised benefits. Logan says it's, even more, pressing for Medicare - which explains the 2026 insolvency date.
"Medicare has had a harder time than Social Security at keeping up, and the reason is because healthcare costs continue to jump," he said.
Logan says people 15 years or more away from retiring will be most affected by any change that lawmakers approve and need to prepare. He recommends putting more into savings, and relying less on programs, destined to change.