Question

Why is Medicare or Social Security funding shortfalls issue important?

Answer 1

The social security funding shortfalls are important because

• They deal with the monthly cash benefits to the retired or diabled workers or their family members
• The beneficiaries will have to wait for a longer period
• The social security bank account may be exhausted
• Benefit cuts would be expected
• Tax changes may occur to save a considerable amount of money
• retirement age may change as they reduce the benefit payment substantially and the reduction in benefit occur just as they are needed
• Cost of living adjustments have to be made
• Partial or complete privatization may occur to create a large unfunded liability